TITLE
RESOLUTION CREATING THE MIAMI-DADE COUNTY HIGH IMPACT FILM FUND PROGRAM; DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO IMPLEMENT THE PROGRAM AND ESTABLISH FUNDING GUIDELINES TO ATTRACT MAJOR TELEVISION SERIES AND MAJOR MOTION PICTURE PRODUCTIONS WITHIN THE COUNTY IN AN AMOUNT UP TO $10,000,000.00 PER FISCAL YEAR; PROVIDING MINIMUM APPLICATION REQUIREMENTS AND PROCEDURES; PROVIDING FOR PROGRAM EVALUATION; AND APPROVING THE HIGH IMPACT FILM FUND REBATE AGREEMENT

BODY
WHEREAS, on April 4, 2023, the Board of County Commissioners (�Board� or �BCC�) passed Resolution No. R-316-23 directing the County Mayor or County Mayor�s designee to create the Miami-Dade County High Impact Film Fund Program (the �Program�) to attract major television series and motion picture productions to Miami-Dade County and enhance the local economy; and

WHEREAS, Resolution No. R-316-23 also directed the County Mayor to identify and allocate sufficient legally available funds in the fiscal year 2022-2023 County budget to fund the Program; and

WHEREAS, sufficient funds were not available for allocation in the fiscal year 2022-2023 County budget, however, the County Mayor has identified an amount between $5,000,000.00 and $10,000,000.00, subject to available funds per fiscal year, to allocate towards the rebate of production funds for major television series and major motion pictures within Miami-Dade County; and

WHEREAS, a production must spend at least $5,000,000.00 locally in order to be granted funds; and

WHEREAS, the expected return-on-investment is $10.00 for every $1.00 the County spends, thus a production that applies for and locally spends $5,000,000.00 would be granted a rebate of $500,000.00; and

WHEREAS, the County Mayor or County Mayor�s designee would implement and operate the Program as prescribed herein; and

WHEREAS, the Program would require a production seeking County rebate funds to submit an application to the County Mayor or County Mayor�s designee as determined by the County Mayor; and

WHEREAS, among other things, such application must indicate that 90 percent of the production that occurs within the State of Florida must occur in Miami-Dade County, 70 percent of hired vendors and contractors be Miami-Dade County registered businesses, and that the production would produce a return on investment of a minimum of $10.00 of every $1.00 provided in rebate funds; and

WHEREAS, upon proper and thorough review of applications, the County Mayor or County Mayor�s designee will approve production projects and enter into rebate agreements for the funding of such high impact productions; and

WHEREAS, distribution of rebate funds will be subject to an audit of each production project and its corresponding documentation to ensure compliance with all guidelines and requirements of each respective rebate agreement,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. Creation. There is hereby created the Miami-Dade County High Impact Film Fund Program (the �Program�).

Section 2. Purpose and Intent. The purpose of the Program is to attract and retain major television series and motion picture productions that ultimately lead to investment in the local economy and create high wage job growth in Miami-Dade County, while showcasing Miami-Dade County as a premier location to work, live and play.
The Office of Film and Entertainment (�OFE�) conducted a year-long outreach tour to meet with producers, directors, studio executives, and other industry stakeholders. Analysis of the feedback collected concluded that the lack of major television series and motion picture productions in Miami-Dade County is due to the absence of competitive entertainment economic development programs. OFE is currently in discussions with major studios on projects that would invest millions of dollars in the local economy, while also creating and sustaining hundreds of high wage jobs. Without a competitive high impact film program, the County is at risk of losing major productions to other counties in Florida or other states. Per Film Florida, a non-profit entertainment industry association, due to major television series and films being shot in those areas rather than Miami-Dade County, over the last seven years the County has lost a projected $800,000,000.00 of indirect spend which accounts for a loss of roughly 100,000 jobs.
The current Miami-Dade Film Incentive Program created in 2017 only incentivizes small to medium productions. It provides rebates of $100,000.00 for productions spending at least $1,000,000.00 or $50,000.00 for productions spending at least $500,000.00. The program�s impact has been limited since its launch and over the past five years few productions have been able to qualify or use the funds allocated.
Section 3. Authority and Scope. The County Mayor or County Mayor�s designee is authorized and directed to implement and operate the Program. In doing so, the County Mayor or County Mayor�s designee shall establish guidelines intended to attract and retain major television series and motion picture productions through the provision of rebates on expenditures in Miami-Dade County based on minimum Program requirements. Each production must complete an application for a determination of whether it meets the requirements of the Program. The County Mayor or County Mayor�s designee is hereby delegated the authority to approve and enter into rebate agreements for the Program, in substantially the form attached hereto.
Section 4. Projected Benefits. The Program will lead to: (1) a stabilization of the exodus of support personnel, crews, talent and ancillary businesses that are involved with the production of television, film and other entertainment projects to other locations with financial support programs; (2) creation of new positions that support such new television, film and entertainment productions; and (3) a financial ripple effect that will ultimately benefit not only auxiliary businesses, but multiple segments of the Miami-Dade County economy.
Section 5. Definitions.
1. Cast � shall mean actors who appear in front of the camera or provide voices for characters in the film. Background extras are not to be considered cast.

2. Below-the-line Crew - shall mean a group of people hired by a production company for technical crew roles: workers who do not provide input, guidance, creative development, or leadership on the project. This shall exclude the main actors, director, screenwriter, producer, or other executives who begin their involvement during the project�s development stage.

3. Miami-Dade County Registered Business � shall mean a business with a valid business tax receipt issued by Miami-Dade County, with a physical address within the geographic boundaries of Miami-Dade County that is leased or owned by the respective business, or a business that pays the 3% Convention Tax and/or the 3% Tourist Tax countywide to the Miami-Dade County Tax Collector�s Office.


4. Production � The Project must be a Production, as defined herein. For purposes of this Agreement, Production shall mean full length motion picture film, a television pilot program; or an episodic television series. One season of a television series is considered one production. A production shall not include a weather or market program; sporting event or sporting event broadcast; gala; production that solicits funds; home shopping program; political program; political documentary; political advertising; gambling-related project or production; concert production; local, regional, or Internet-distributed-only news show or sports news or sports recap show; pornographic production; or any production deemed obscene under Chapter 847 of the Florida Statutes. A production may be produced on or by film, tape, or otherwise by means of a motion picture camera; electronic camera or device; tape device; computer; any combination of the foregoing; or any other means, method, or device.

5. Qualified Miami-Dade County residents � shall mean individuals demonstrating proof of residence, as determined by the County Mayor or County Mayor�s designee, in Miami-Dade County.

6. Vendors/Contractors � shall mean incorporated businesses hired by the Production. Vendors/contractors can include, but are not limited to, the following services: vehicular rentals, equipment rentals, hotel nights, rental and purchase of props and wardrobes, restaurants and catering, and private property rental fees, among others.

7. International Co-productions � shall mean productions that are co-produced by a United States-based production company and a foreign production company.

Section 6. Application Procedure. The County Mayor or County Mayor�s designee is directed to develop an application to be completed by any production seeking to film a major television or major motion picture film and entertainment production. Such application must be completed as determined by the County Mayor or County Mayor�s designee. The application may be administratively modified by the County Mayor or County Mayor�s designee from time to time, but must at a minimum incorporate the following requirements:
1. Production projects must register with OFE to begin the application process.

2. Require a minimum amount of spending of $5,000,000.00 in Miami-Dade County.

3. Require a per project return of investment of at least $10.00 for every $1.00 provided by Miami-Dade County as part of the Program. Project return of investment shall be calculated by dividing the total of salaries paid to Miami-Dade County residents and amount paid to Miami-Dade County Registered Businesses hired as vendors/contractors for every dollar of support from Miami-Dade County.

4. Require that no less than 90 percent of the production that occurs within the State of Florida occur within Miami-Dade County.

5. Require that no less than 70 percent of hired vendors/contractors be Miami-Dade County Registered Businesses for days produced in Miami-Dade County.

6. Require that no less than 60 percent of qualified Miami-Dade County residents be hired as Below-the-line Crew for the days produced in Miami-Dade County. The remaining percentage may be Florida residents.

7. Require that Miami-Dade County residents are paid, at a minimum, the same rate as provided in Miami-Dade County Code Section 2-8.9, as may be amended from time to time, as if the Production were a covered service contractor.

8. Require that a Production showcase Miami-Dade County to the extent that the Production has a sense of place in Miami-Dade County as determined by OFE.

9. Require that a Production hire two students and recent graduates from local colleges or universities as determined by OFE.

10. Production must use Miami-Dade County studios and sound stages, and must have base production offices in the County.

Section 7. Rebate Agreement. In accordance with section 3 above, the County Mayor or County Mayor�s designee has the delegated authority to enter into rebate agreements upon review and approval of a given application. The County Mayor or County Mayor�s designee has the right to request clarification and/or additional information based on the application submitted, and further has the right to deny the application due to lack of sufficient information, failure to meet the minimum requirements and guidelines, or based on the production�s scores and ranking as compared to other applicants. Applications will be scored based on the calculation of the submitted budget line items: total jobs created, qualified wages, qualified Miami-Dade vendors, hotel expenditures, qualified production expenditures, and a Miami-Dade-centric script. Additionally, higher consideration shall be given to international co-productions. The applications will be ranked by combined totals and the highest return on investment. Additional guidelines and/or requirements may be negotiated and included by the County Mayor or County Mayor�s designee on a case-by-case basis. The rebate may be up to twenty percent of the production�s local spend and is subject to available funds.
The terms of the rebate agreement will be determined by the County Mayor or County Mayor�s designee after reviewing each application. Only one rebate agreement is allowed per Production or its associated subsidiaries, distribution company, or network, except for a multi-year Production, like a television series with multiple seasons. Each year the rebate budget must be approved by the BCC. These annual rebates will be fully identified as part of the budget process, delineated in the final approved budget, and shall not require additional approval before the BCC.
Each rebate agreement must indicate that rebate funds are distributed only upon the completion of the Production and subject to an audit to ensure compliance with the guidelines of its respective rebate agreement.
Section 8. Disbursement of Funds. Any Production project seeking a rebate pursuant to an executed rebate agreement must submit documentation reporting its compliance with the guidelines of its respective executed rebate agreement. Documentation submitted to Miami-Dade County for the rebate must be audited by a certified public accountant prior to submittal at the sole expense of the Production. Staff designated by the County Mayor will review the audited documentation to further ensure compliance.
Section 9. Program Evaluation. The County Mayor or County Mayor�s designee shall take steps to routinely assess the Program�s ability to meet the stated purpose and intent as outlined in section 2 above and make Program modifications as necessary. The initial Program evaluation shall be made within five years of the Program�s commencement and shall, at a minimum, be based on data from the previous four and a half years. Thereafter, the County Mayor or County Mayor�s designee will track, on at least an annual basis, and make available upon request, Program evaluation reports. The initial Program evaluation and all evaluations thereafter shall include, at a minimum:
1. Total number of rebate applications awarded;

2. Total return to the County for every $1.00 provided under the Program;

3. Total number of Miami-Dade County residents hired;

4. Total number of jobs created with the pay rate indicated in Miami-Dade County Code Section 2-8.9;

5. Total number of students or recent graduates of local colleges and universities hired as a result of the Program; and

6. Percentage of hired vendors that are Miami-Dade County Registered Businesses.

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Date:

To: Honorable Chairman Oliver G. Gilbert, III
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor
Subject: Creating the High Impact Film Fund Program
(HIFFP)�- Directive No. 230359

STAFF RECOMMENDATION
Executive Summary
This item is in response to Directive No. 230359. On April 4, 2023, the Board of County Commissioners (Board) adopted Resolution No. R-316-23 sponsored by Senator Ren� Garc�a,�directing the County Mayor or County Mayor�s Designee to create a program to attract studio television series and motion picture productions from major production companies and to identify and allocate sufficient legally available funds in the FY 2022-2023 budget to fund the program. The program would have a minimum of $5,000,000.00, up to $10,000,000.00 per fiscal year, subject to available funds, to attract major studio productions with budgets ranging from $4,000,000.00 to $8,000,000.00 per TV episode, or an estimated $50,000,000.00 for motion pictures.

If approved, the High Impact Film Fund Program (HIFFP) will:�

* Establish an enhanced program for fostering competitive film economic growth, aimed at both retaining and enticing prominent television series and motion pictures.

* Create up to 1,500 high wage jobs across Miami-Dade County.

* Support local small businesses such as lodging, transportation, equipment rentals and more.

* Increase local spending on various goods and services throughout Miami-Dade County.

* Greater investment in local infrastructure�such as studios, soundstages, and production facilities.

* Increase tourism by attracting fans interested in experiences places seen on the screen.

* Nurture local talent by creating a skilled workforce for the creative and technological sectors.

Recommendation
It is recommended by the Office of Film and Entertainment (OFE) that the Board approve and implement the creation of HIFFP for a minimum of $5,000,000.00, up to $10,000,000.00 per fiscal year subject to available funds. The funds will be used to attract major studio productions with budgets ranging from $4,000,000.00 to $8,000,000.00 per TV episode, or an estimated $50,000,000.00 for motion pictures, to Miami-Dade County, and authorize the County Mayor�or County Mayor�s Designee to establish the guidelines and criteria set forth in HIFFP, and delegate the authority to the County Mayor or County Mayor�s designee to approve the rebate awards and execute agreements. In addition, the County will seek additional funding through partnerships with the goal of achieving a $20,000,000.00 HIFFP fund.

Scope
The impact of the High Impact Film Fund Program is countywide.

Delegation of Authority
If adopted, the resolution to create the HIFFP would delegate the authority to the County Mayor or the County Mayor�s designee to implement the program, establish the guidelines and criteria set forth in HIFFP, approve the performance-based rebate awards, and execute agreements in individual amounts up to $5,000,000.00 per fiscal year for qualifying projects subject to review for legal sufficiency of the agreement. The County Mayor of County Mayor�s designee would also be delegated the authority to take all administrative and budgetary actions to implement the HIFFP.�

Fiscal Impact/Funding Source
In response to Directive No. 230359, Countywide general funds have already been allocated for FY 22-23, thus HIFFP would be funded effective FY 23-24. The program would allocate a minimum of $5,000,000.00 per fiscal year from countywide general fund revenue. Marketing of the program will also be required and would cost $30,000.00 for years 1-5. Productions granted a rebate under HIFFP must spend at least $10.00 for every $1.00 the County spends toward the rebate, thus generating the County at least $50,000,000.00 per fiscal year. Given current conversations with the industry, OFE expects entire funding of HIFFP to be utilized per fiscal year.

Track Record/Monitor
Marco Giron, Chief, Office of Film and Entertainment in the Department of Regulatory and Economic Resources, will be responsible for verifying compliance.

Background
The film and television industry has a long history in Miami-Dade County that dates to the early 1900�s. The film and television industry continues to grow as the entertainment sector expands with the advent of new technologies that are driving creation of more creative content. Miami-Dade County is a world-class production hub for film, television, and digital media. It is home to 200 production companies, multiple soundstages and recording studios, three (3) Spanish-language production facilities, and many businesses that support motion pictures, videos, digital and still shoots. The film, television, and digital industry support direct and indirect jobs for the local creative sector. It is also home to some of the best-known actors, celebrities, and musical artists globally.

The importance of film tourism has increased in the last two decades. Per Credence Research, the global film tourism industry was estimated to be worth $68.1 billion in 2022 and is expected to be worth $110.79 billion by 2028. The United States accounts for the largest revenue share of the global film tourism market. The US film tourism sector is driven by several components, including many film production companies and studios, high-quality infrastructure and services, and filming locations. Also, some state governments provide economic development programs to production companies to encourage filming, thereby promoting the film tourism business. �The Greater Miami Convention & Visitor Bureau (GMCVB) reported that in 2022, Miami-Dade welcomed 26 million visitors who spent $20.8 billion. GMCVB is preparing to work with the Office of Film and Entertainment to launch film tourism initiatives targeting the domestic and global market and Miami-Dade County. According to ZipRecruiter, staff has identified 11 states where the typical salary for a Film Industry job is above the national average. Topping the list is Hawaii, with Nevada and Massachusetts close behind in second and third. Massachusetts beats the national average by 11.4%, and Hawaii furthers that trend with another $9,952.00 (14.6%) above the $68,310.00. With these 11 states paying on average above the national average, the opportunity for economic advancement to launch HIFFP appears to be exceedingly fruitful for Miami-Dade County.

Despite the County�s strong location advantage in filmmaking and the noticeable economic impact of motion picture production in many municipalities, the industry�s development is significantly below the national average and other competing markets. In 2021, the industry represented only 0.13 percent of the total private sector employment in Miami-Dade County compared to 0.20 percent nationally. The resulting location quotient of 0.65 indicates that the county�s motion picture and video production industry is 35 percent less concentrated in the local economy than the national average, and significantly less represented in the regional economy compared to other major filmmaking markets.

The current Miami-Dade Incentive Program focuses on small to medium productions as it provides rebates of $100,000.00 for productions spending at least $1,000,000.00 or $50,000.00 for productions spending at least $500,000.00. Enacted in 2017, the program no longer meets the needs of the industry and is under-utilized to high-cost requirements including: 70 percent labor, 70 percent local vendor spend and 70 percent production days. In states with robust�programs, there are no minimum filming days or have a significant lower percentage than 70 percent for the total project shoot. As a result, OFE recommends sunsetting the current program.

Per Directive No. 212620, as an extension of OFE�s Film and Entertainment Education Initiative, HIFFP would require productions to hire at least two (2) college students from a school located in Miami-Dade County. OFE�s Film and Entertainment Education Initiative is a partnership with local colleges and Miami-Dade County Public Schools to enhance existing programs by being the bridge between the classroom to local industry professionals in the field. This will support the goal to retain the future workforce in Miami-Dade as the industry builds infrastructure with HIFFP.

In addition to the education initiative, OFE carried out a year-long outreach involving producers, directors, studio executives, and other industry stakeholders, both those engaged in and those not currently conducting business in Miami-Dade County. Analysis of the feedback collected concludes that the lack of major TV series and movie productions in Miami-Dade County is due to the absence of competitive entertainment economic development programs. The proposed HIFFP cash�rebate is intended to attract productions with budgets that exceed $5,000,000.00 local spend and ensure that most of the total project is produced in Miami-Dade.� Without a competitive�HIFFP, the County is at risk of losing major productions to other Counties in Florida or other states.

In recent years, other counties in Florida, such as Broward, Hillsborough, Duval, and�Pinellas, have created their own competitive film economic development programs. In addition, states such as North Carolina, Texas and New Mexico have also created�competitive production economic development programs as detailed in the chart below. �Miami-Dade County is comparable to states with similar populations.
�
Population�
Annual Allocation�
Minimum Spend�
Filming Days�
Percentage�
Production Related Sales Tax Exemptions�
Total Spend��
Reported ROI�
Miami Dade - Proposed Program�
2.6 million�
A minimum of $5M up to $10M. (Subject to available funds)
$5M for feature films and streaming movies and episodic TV
No minimum requirement for production days�
Up to 20% cash rebate
Entertainment Sales Tax Exemption�
N/A�
N/A
Mississippi�
2.95 million�
$20M�
$50K�
No minimum requirement for production days�
25% cash rebate�
1.5% on Production equipment and machinery�
FY21 $61M�
Not Reported�
Texas�
30 million�
Production must inquire with film office on fund availability.�
5% for $250,000 - $1 million�
10% for $1 million - $3.5 million�
20% for $3.5 million+�
At least 60% of production days must be completed in Texas.�
Up to 22.5% cash rebate�
Sales Tax Exemption, Fuel Tax, State Occupancy Tax�
FY22 $1.95B�
$5.04�
Puerto Rico�
3.2 million�
$38M�
$50K�
No filming requirement, however 50% of the project must be shot in Puerto Rico.��
40% Transferable tax credit�
N/A�
FY21 $173M�
Not Reported�
�
North Carolina�
10.7 million�
$31M�
$500,000 per episode average for tv/streaming series�
$1.5 million for feature-length films�
$500,000 for made-for-tv/streaming movies�
No minimum requirement for production days�
25% cash rebate�
Accommodation Refunds�
FY22 $179.7M�
Not Reported�
�
New Mexico�
2.118 million�
$160M�
No Minimum spend. $50,000 per episode (min 6 EPS) for series�
No filming requirement.�
25-35% refundable tax credit�
N/A�
FY22 $855.4M�
��
$8.40�
�
It is recommended that the Board approve the HIFFP as it would greatly benefit Miami-Dade County. Film incentive programs support economic development for a county by creating jobs, stimulating local spending, attracting investment, promoting tourism, and enhancing the county's overall appeal, which can lead to sustained growth and increased prosperity. The program will begin to position Miami-Dade as a global destination for major film and television production. Therefore, the County�s economy will significantly benefit from a more aggressive and targeted robust strategy aimed at promoting the growth of the motion picture and video production industry. It is projected per fiscal year, that HIFFP will generate an estimated 1,500 jobs, roughly 3,900 hotel night stays and a projected revenue of $50,000,000.00 in Miami-Dade County. OFE has received several letters of support from industry stakeholders, copies of the letters are included as Attachment A.

Attachments�

____________________________
Jimmy Morales
Chief Operations Officer
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Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners
Extension of the term of the Expedited Purchasing Program (EPP)
Page 2


Honorable Chairman Oliver G. Gilbert, III
and Members, Board of County Commissioners
Page No. 2