Netflix plans to boost its presence by committing to an additional $1 billion to production at its studios in Albuquerque, New Mexico.
The expansion will add 300 acres to the company’s existing space at ABQ Studios, located in Albuquerque’s Mesa Del Sol area, making it one of the largest high-tech and sustainable film production facilities in North America. The investment will result in the creation of an estimated 1,000 production jobs in New Mexico over the next ten years.
Netflix Co-CEO Ted Sarandos said, “New Mexico provides an outstanding production and business environment in close proximity to Los Angeles with some of the best crews and creative talent in the world. The expansion will bring many new high-tech and production jobs to the region. It allows us to be more nimble in executing our production plans while cementing the status of the region as one of the leading production centers in North America.”
“Ever since Netflix first chose New Mexico, they have been nothing but an incredible partner, pushing the boundaries of innovation and expansion while providing fulfilling work opportunities for so many New Mexicans,” said Governor Michelle Lujan Grisham. “My administration has expanded our state’s competitive film incentives, facilitating higher-wage employment for New Mexicans all across the state, and increased opportunities for rural communities. I am glad Netflix has chosen to double-down on its commitment to our state, and our partnership will continue to grow for the benefit of New Mexicans across the board.”
The State of New Mexico will provide up to $17 million in State LEDA funding and the City of Albuquerque will commit up to $7 million in local LEDA funding, including $6 million in infrastructure in-kind.
In addition, the City of Albuquerque will issue an Industrial Revenue Bond (IRB) to partially abate property and other taxes over a 20-year term for the first $500 million investment by Netflix to build out the production facility. In addition to the private land acquisition of approximately 170 acres, Netflix will also lease approximately 130 acres from the State Land Office for a total of 300 additional acres.
All funding is pending the approval of the Albuquerque Development Commission and the Albuquerque City Council. If approved, funding will be disbursed according to benchmarks set out in the Public Participation Agreement.
"The State Land Office exists to leverage state trust land in order to raise funds for our public schools, hospitals, and universities, and we couldn't be more thrilled to add Netflix to the family of businesses that help us keep New Mexico moving forward,” said Stephanie Garcia Richard, Commissioner of New Mexico State Land Office. “Netflix's expansion to state trust land is great news for our state. Because of this partnership, New Mexico will benefit from new jobs and more revenue flowing into communities that become filming locations. Netflix has already been delivering on those promises, but by moving onto state trust land, an estimated $24 million will be going to the University of New Mexico, the beneficiary of the state trust land onto which they will expand their studios."
As part of the proposed expansion and Netflix’s commitment to job creation associated with an additional $1 billion in production spend and $150 million in capital expenditures, the company will add up to ten new stages, post-production services, production offices, mills, backlots, and training facilities, wardrobe suites, a commissary to support meals and craft services, and other flex buildings to support productions.