The Honolulu City Council on Tuesday put the brakes on a bill that would provide tax incentives for property owners who want to build film studio facilities on O'ahu.
The decision was made by Councilmember Radiant Cordero, the chair of the Budget Committee, after Mayor Rick Blangiardi's administration suggested several amendments. The bill garnered support from mostly film industry experts, which sparked further discussion from the committee.
Bill 59, introduced by Councilmember Augie Tulba, aims to diversify the state's economy through the film and television industry as projects filmed in Hawai'i include "Magnum P.I.," "Hawaii 5-0," "Aquaman," "The White Lotus," "Doogie Kameāloha, M.D." and the Lost Kingdom."
The measure would provide tax relief for creating a film studio on Hawaiʻi's most populous island. A property owner would need to invest a minimum of $100 million for improvement costs and build the facility within five years.
In 2020, the state Department of Business, Economic Development and Tourism reported that 17 productions claimed $24.7 million of the Hawaiʻi film tax credit, and spent $128.1 million on local and out-of-state wages and services.
Andy Kawano, the director of the city's Department of Budget and Fiscal Services, said the Blangiardi administration supports the measure, adding that Hawaiʻi may lose local filmmakers to the continent, Australia and other places offering more opportunities.
"We believe that the bill, as we work through it, can result in meaningful advancement of our film production studios that we have on island," Kawano said to the committee. "But what we have currently on island is very much dated and lacking."
The Blangiardi administration's recommendations would require a studio facility to be built on a property no smaller than 10 acres and the tax exemption to last for 20 years instead of 30 years.
The state has tried tax credits and other financial incentives through legislation dating back as far as 2000, according to the bill.
Chris Lee, founder and director of the Academy for Creative Media, said Hawaiʻi has the workforce and talent, but there are not enough facilities to support them.
"When you have a big movie like "Jurassic Park," "Jumanji" or "Pirates of the Caribbean," they can come here and shoot in our beaches and jungles, but all of that visual effects work that drives all the Marvel and 'Rock' Johnson movies, all of that has to be done in big stages with visual effects."
Lee said the state-owned Hawai‘i Film Studio, for example, can only support one television show at a time. He also noted that 70% of productions occur on Oʻahu.
During Tuesday's meeting, Cordero asked about the definition and longevity of the local workforce.
Kawano said that may be defined over time as some filmmakers move to the state from various parts of the globe.
"The hope is that the facility can be a training ground for people that live here," he said.
The measure is still alive. It would need to be scheduled by the chair for another committee hearing.
