Vancouver's a Film Production Boom Town

and we're only two hours away,” B.C. Film Commissioner Susan Croome told TheWrap. “We have diverse locations from the desert, the mountains, the city that can play as any city and the growth forests. We have labor-based tax credits that are competitive, and they are steady, sustainable and predictable.”

The wild card for Vancouver, like all Canadian locations masquerading as “Anywhere, U.S.A.,” has been the fluctuating dollar. Primarily because of Chinese foreign exchange diversifications, the Canadian dollar started picking up currency steam in the fall of 2007, hitting par with the U.S. and, for the first time in 30 years, closing above at $1.0052 on Sept. 28 of that year.

The historic heights continued for several months into 2008. Today the loonie, as the Great White North currency is known, has settled back at about 81 cents for every greenback -- which is a very good proposition for production. “The industry is always going to chase the lowest production costs,” said Kirk Shaw, president of Insight Film Studios, one of Canada’s largest production companies.

In that environment, the first- and second place finishers -- Los Angeles and New York -- are feeling the heat.

Last month, the L.A. City Council passed an industry-lobbied incentive-and-ease package designed to encourage more production in the city. In a town wounded by studio layoffs, there are only three blockbuster budgeted films scheduled to shot locally this year, as opposed to 21 last year. (Click here for production in L.A.)

“Ugly Betty” jabbed L.A. production when it left to film in NYC last year but the Empire State has taken some serious body blows itself. Besides losing big budget features like “Percy Jackson,” there has been a plunge in production because of high costs only partially mitigated by extended tax credits. Last year, 19 pilots were filmed in New York. Even though Albany extended its tax credits by a year last week in the state budget there wasn’t a single pilot being shot in the state.

While other jurisdictions on both sides of the border jockey to attract production, Vancouver industry insiders believe they still hold the perfect hand.

“I think Manitoba will get a certain amount of productions based on their tax credits,” points out Leitch, “and while our credits may not be the lowest, they are bankable and we offer... more infrastructure and post-production and a true cost-effectiveness that few states or provinces can match.”

Having just stepped out of watching dailies for “Percy Jackson,” Michael Barnathan, agreed. “The truth is the infrastructure and the facilities in Vancouver are great and the tax incentives are consistent and strong,” said the producer, who hopes to repeat his success on the “Harry Potter” films with this possible new franchise when it hits screen next February. “As long as we can get that 25 percent savings on the currency, and it doesn’t fluctuate too much, Vancouver is perfect.”

Which just might be why Vancouver might find itself reaching for the Gold soon -- and not because the city is hosting the Winter Olympics next year.  

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