AGENDA CAPTION:
Title
Consider approval of Ordinance 2021-89, on the second of two readings, designating the City as a Media Production Development Zone; providing a savings clause; providing for the repeal of any conflicting provisions; and providing an effective date.
Body
Meeting date: November 16, 2021
Department: City Manager
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Vision San Marcos - A River Runs Through Us
Background Information:
The Media Production Development Zone Act was established by the 81st Texas Legislature in 2009 and is administered by the Texas Film Commission with the purpose to encourage further development of permanent moving image production sites to strengthen the Texas economy.
Media Production Development Zones (MPDZs) allow for a sales and use tax exemption for the construction, maintenance, expansion, improvement, or renovation of a media production facility at a qualified media production location over up to a two year period. Media production facilities may include animation/CGI studios, post production facilities, sound stages, video game development studios, and production office space.
This ordinance establishes the City of San Marcos city limits as the geographic area for a Media Production Development Zone. The MPDZ designation would expire on September 1 of the fifth year after designation. Establishing a Media Production Development Zone does not obligate the City of San Marcos to offer incentives or nominate a project, but it establishes another potential tool to be used for economic development.
Should a project wish to receive a benefit from the MPDZ, the project team would submit a separate application to the City of San Marcos for consideration and nomination as a qualified media production location. That separate process would entail a thorough application and evaluation process with the City of San Marcos and the State of Texas entities of the Comptroller of Public Accounts, Media Production Advisory Committee, and Texas Film Commission.
Council Committee, Board/Commission Action:
First reading was approved 7-0 at the November 3, 2021, City Council Meeting.
Alternatives:
Not approve the ordinance or designate a smaller area as the MPDZ.
Recommendation:
Staff recommends approval of the ordinance.