NMSU approves development deal for $15M soundstage

New Mexico State University regents unanimously approved a 12-year agreement to develop a soundstage for film and TV production at the Arrowhead Center, the university’s business and technology arm.

The regents met at DACC’s East Mesa campus on June 28.

The $15 million complex is funded by the New Mexico Economic Development Department and would be leased by the university to production companies. The planned facilities include a 20,800 square foot soundstage, a 10,400 square foot production building, and an additional equipment storage building.

Soundstages are large buildings designed for shooting footage with live audio and built to accommodate scenery or green screen technology as well as needed space for equipment and crew members to operate.

The project represents another investment in movie and TV production for the Las Cruces area, independent of the facilities planned for construction by California-based company 828 Productions.

“We know there's a lot of film stuff going up in northern New Mexico, in Santa Fe and the surrounding areas, and so it's an opportunity to get that same industry down in the southern part of the state,” Regent Deborah Romero said during the meeting.

The plans at Arrowhead include the state Higher Education Department in a workforce development project with paid internships for NMSU and Doña Ana Community College students working on film and television productions, as a way to nourish careers locally and draw more production to the region.

A presentation for the regents stated that Arrowhead anticipates up to $500,000 in annual revenue from leasing the facilities on top of building a media arts collaborative that affords educational opportunity and professional experience. Arrowhead also cited local economic boosts when productions visit the region.

The presentation also reported that New Mexico is turning away production opportunities because its existing facilities are in high demand.

Arrowhead projected that the basic costs of owning and operating the soundstage would be recovered at 30 percent lease occupancy, and that excess revenues would be allocated to an operations reserve fund, another reserve fund for maintenance and upgrades and to student support initiatives. Annual maintenance was projected to cost $40,000.

The 12 years include three years for development and 10 for operations, after which the university would be free to convert the facility for other purposes if it wished, per terms with the EDD, which provides the funding for the development.