There are lots of people in Charlotte in general and on the east side in particular think that converting Eastland Mall into a movie/film studio is a great idea. I’m not sure why.
First, why exactly is the city involved? City Council member John Autry explains to the UPoR:
“We think that this is the last opportunity to have control of the site,” said Democrat Autry, who represents the area. “If this is to fall through, we’ll see the mall broken up. There won’t be any planning to it.”
And this would be a problem because? Because government is omnipotent and it and it alone can deduce the proper use for the property? Because the only just and appropriate use of the land is one that is blessed by Autry and city staff?
And exactly what does the city bring to the table aside from its desire to plan? $13.2 million in taxpayer dollars to buy up the property so it can give it to a favored developer to turn into a movie studio.
Why a movie studio? And what reason do we have to believe that this makes any economic sense? Because an economic development study essentially says we need a movie studio. Why do we need a movie studio? Because the consultant that drew up the report said we need should target that industry. Does that make any sense?
My John Locke Foundation colleague Jon Sanders has a new report out on state subsidies and the film industry in North Carolina. Highlights:
Targeted tax incentives changed the industry, especially when the number of states offering special breaks jumped from four to 44 from 2002 to 2009, Sanders said. North Carolina’s last major film incentive expansion came in 2009, after Georgia outbid the Tar Heel State for a Miley Cyrus movie.
“The biggest beneficiaries of film incentives are film production companies, while state film offices, local studios, film crew workers, restaurants, hotels, and pro-incentive politicians also stand to gain when a film production comes to town,” Sanders said. “Boosters also tout benefits for tourism, but tourism effects are fickle, unpredictable, and not very powerful.”
Many states are rethinking their film incentives, Sanders said. “Eight states ended, suspended, or stopped funding film incentives from 2009 to 2011,” he said. “Others either cut back incentives or considered ending them. States are making these cutbacks as several studies have found that film incentives return to state coffers mere pennies on the dollar spent.”
North Carolina’s refundable film tax credit causes a special concern, Sanders said. “If the film production company’s tax liability is smaller than the credit, the state writes the company a check for the difference,” he explained. “This is a classic example of corporate welfare. It’s been described as choosing movie stars over teachers.”
Film incentives show that lower taxes and less regulation attract industry, Sanders said. “Recent research shows that cutting taxes and regulation across the board — rather than just for the favored film industry — would provide a powerful stimulus for the state’s economy.”
Sanders describes state film industry incentives as an example of crony capitalism. that’s a good description. And so it would seem that with its Eastland to movie studio plans, the City of Charlotte is doing its best to spread crony capitalism.
