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The city entered into an exclusive negotiated agreement with Midtown 疯客直播 Fe Productions for the creation of a film studio on the midtown campus in July 2023.

The proposal would merge the existing Garson Studios with the adjacent Midtown 疯客直播 Fe Production Studio 鈥� operating since 2022 in the former Shellaberger Tennis Center 鈥� to create a massive studio dubbed Aspect Studios.

Along with several large sound stages, the agreement includes plans for an apartment complex, a cafe and a movie theater.

Mayor Alan Webber introduced the development agreement, which is scheduled for a public hearing and final council vote Dec. 11.

鈥淲e鈥檙e excited about it,鈥� said Phillip Gesue, a principal at Aspect Studios. 鈥淚t鈥檚 been a long time getting the agreement done, but we think it鈥檚 a good concept, and we think it鈥檒l allow the city and our business to be more competitive as the industry gets more competitive.鈥�

Daniel Hernandez, the city鈥檚 new Metropolitan Redevelopment Agency director, said the agreement took a long time to finalize in part because the city was still examining the infrastructure at midtown and negotiating responsibilities between the city and the developer. City officials hope to use the new deal as a blueprint for a second development agreement for a performing arts campus.

A former project manager for the midtown redevelopment, Hernandez was hired last month as the city鈥檚 Metropolitan Redevelopment Agency director following the resignation of Karen Iverson after less than a year.

Under the terms of the agreement, Aspect Studios will pay the city $5 million in four installments over the next five years, $1 million of which will be paid as soon as the agreement goes into effect.

Hernandez said improvements to the property were factored into the price tag. The city will be responsible for improving existing roads on the campus, and the developer will build a loop road leading to the film studio. Gesue also negotiated agreements with Public Service Company of New Mexico for additional electrical supply to the property needed for film production, Hernandez said.

鈥楩eels like a win-win鈥�

Construction of the project is expected to happen in three phases over about five years. In the first phase, O帽ate Hall will be demolished and Benildus Hall, Driscoll Hall and Garson Hall will be renovated into a film and multimedia production studio, office space, a theater and a restaurant.

Gesue said the restaurant will be 鈥渁n upscale bistro鈥� open to the general public.

鈥淚t really will be the first place where you can get a cup of coffee in midtown,鈥� he said.

The second phase will be construction of a multifamily residential building, and the third phase will be additional production studios.

Gesue said Phase 1 is expected to take two years and Phase 2 about 18 months.

The 鈥渟tudio village鈥� concept will help Aspect Studios become more connected to the rest of midtown, he said, 鈥渨hich is very much a going to be a new community.鈥�

The terms of the agreement include community benefits, such as a requirement that companies using the site generate production expenditures in New Mexico of at least $30 million in the studio鈥檚 first five years of operation and at least $150 million by its 15th year. If the benchmarks are not met, the studio will pay a fine of $25,000 a year.

Production companies using the studio also will be required to offer a total of 20 internships per year in partnership with a New Mexico film school or internship program.

For eight days a year, the developer will be required to offer community organizations access to the movie theater to host events, and at least 3,000 square feet of space in one of the buildings must be used for educational purposes.

None of the work will require rezoning, but Hernandez said it will require a change to the midtown master plan, which did not include housing in the film studio proposal. The change will go before the Planning Commission and City Council at a later date.

Hernandez said the housing component 鈥渇eels like a win-win for us鈥� because it鈥檚 an aspect of the midtown campus redevelopment people have been most eager to see.

The 鈥渟tudio village鈥� apartment complex will increase the total number of units at midtown, previously estimated at a maximum of 1,100 townhomes and apartments.

Under the requirements of the midtown redevelopment, at least 15% of the apartments in the complex must comply with the city鈥檚 guidelines for affordable housing. An additional 15% of the units will be available to crews working on film production.

The design of the complex is not complete, but it will hold about 100 units, Hernandez said.

鈥楩ilm production is slowing鈥�

Projects shot at Midtown 疯客直播 Fe Productions include The Lost Bus, a feature film starring Matthew McConaughey, and the TV show Outer Range.

Gesue said the merger of the two studios will allow Aspect to court not just smaller indie productions but large blockbusters as well, which he said is critical for the business to be competitive in an industry that is becoming more challenging.

鈥淔ilm production is slowing down as there鈥檚 consolidation in the streaming industry, so there鈥檚 really a lot less production than there has been in the recent past right now,鈥� he said.

LaBar-Tapia said film production has been somewhat slower in the second half of this year for several factors, including a threatened second strike this summer that prompted some studios to pause their productions.

She said production may also be leveling off after the pandemic years, when studios were making content at a breakneck pace to match consumer demand.

Despite the slowdown, she said New Mexico is still on the map as a competitive destination, and she remains optimistic.

鈥淚 feel like we鈥檙e going to have a pretty strong year next year,鈥� LaBar-Tapia said, adding she spent much of Monday scouting for a location for a potential client.

Gesue said he still believes the financial amounts stipulated in the agreement are realistic if Aspect Studios is successful at attracting larger films.

鈥淲e care very much about local production and independent films, but we also want to try to recruit some of these really, really big ones that have 1,000-plus employees working on the project,鈥� he said.

Part of attracting larger films is about having the worker base to sustain them. Gesue and city officials said it will be a boon to the local economy if more local people are drawn to working in the industry.

The studio has a film program offered jointly by 疯客直播 Fe Community College and the Stagecoach Foundation, in which continuing education, community college and even high school students can get on-the-job training.

Geuse said education is critical for building a crew base able to support a large film production, which he said is a top concern of studio executives looking to host a production in 疯客直播 Fe. He noted midtown is right next to 疯客直播 Fe High School, and that students will be able to take advantage of opportunities to get their foot in the industry from an early age.

鈥淵ou talk about appealing to your community 鈥� it鈥檚 people from this neighborhood, which is really wonderful,鈥� he said.