ORDINANCE NO. 160093
Amending Chapter
2, Code of Ordinances, by enacting a new Article 17 to implement a film development
program to encourage film production in the City of Kansas City, Missouri
(City).
WHEREAS, the
film production industry represents a remarkable opportunity for economic
growth in the City of Kansas City, Missouri, and developing a program that
attracts this creative industry will give the City a
national competitive edge; and
WHEREAS, Kansas
City has been dubbed a ‘Tech City’ and the film production field is a tech
industry that harnesses market assets in digital technology and fiber bandwidth,
and in the business ecosystem increasing film production grows the tech sector;
and
WHEREAS, a
creative economy benefits jobs, neighborhoods and businesses such as hotels,
restaurants, production companies, advertising agencies, equipment rental
houses, talent agencies, casting agencies, caterers, support vendors, and traffic
control vendors; and
WHEREAS, a
program for Kansas City curbs ‘leakage’ of our talented industry residents and
graduates, who move to other states and cities to work and live, and encourages
more quality projects that offer more work opportunities for our specialized
and talented workforce; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
Chapter 2, Article 17, Code of Ordinances of the City of Kansas City, Missouri,
is hereby enacted to add a new Article titled Film Development Program to read
as follows:
ARTICLE 17.
FILM DEVELOPMENT PROGRAM
Sec. 2-2150. Purpose of Article.
The purpose of
the City’s film development program is to increase the number of film productions
in the City, increase and sustain the number of local jobs in the industry, to
strengthen the City’s national reputation as a place for creative businesses,
and to promote the unique features, characteristics and assets within Kansas
City neighborhoods. The program provides a rebate to qualifying production
companies that meet the requirements outlined in this Article.
Sec. 2-2151. Definitions.
The following words, terms and phrases, when
used in this article, shall have the meanings ascribed to them in this section,
except where the context indicates a different meaning:
Above the
Line means individuals including screenwriter, producer, director and
principal actors who influence and add to the creative direction of a project.
As funding is
available means that there is a finite amount of funds available for the
film program and the available funding is subject to the City’s annual budget
process.
Call sheet
is a form that documents cast and crew who worked on the film project, the
number of days those individuals worked, the rate at which they were paid and
the hours worked daily.
City
means City of Kansas City, Missouri.
Commercial
Bundle means multiple commercial spots filmed during the same principal
photography period.
Expatriate
Crew means any crew person returning to the Kansas City area to work on a
project who once held residence in the Greater Kansas City Metropolitan Area.
Family Video means
the filming or recording of motion media solely for private use.
Filming means
activity for staging and shooting motion pictures, television shows or programs,
commercials, videos, including setup, strike and the time of photography.
Final
Expenditure Report is a form provided by the City that reports the
qualified expenditures within the city limits of Kansas City, Missouri.
Greater
Kansas City Expenditure Report is a form provided by the City that reports
the total area expenditures in the Greater Kansas City Metropolitan Area.
Greater Kansas
City Metropolitan Area is defined by the City and the five (5) surrounding
counties including Jackson, Platte, Clay Counties in Missouri and Wyandotte,
and Johnson Counties in Kansas.
Kansas City
Film + Media Office is an office of the Convention & Visitors Bureau of
Greater Kansas City (d/b/a Visit KC).
Local crew means
a group of people hired by
a production company for the purpose of producing a film or
motion picture and who reside in Kansas City, Missouri.
Local
principal cast means a paid actor residing in Kansas City, Missouri who has
a lead, day player, featured or speaking role.
Regional crew
means crewmembers who are residents of the Greater Kansas City Metropolitan Area.
Proof of
Purchase means receipts or other documents showing purchase of goods
and services, location and cost.
Principal filming
date means the time period and phase of production during which the
main filming occurs.
Production
means a feature-length film, documentary film, television movie, television
pilot, reality program or each episode of a television series or web series. It
may also mean corporate media, industrial media, music video, short subject or
web video.
Qualified expenditure
is an expense for a product or service that is a necessary cost for the
production of a qualifying production for which remuneration is received by a
business entity, organization or individual located in the City. Such
expenditures may include, but are not limited to, costs for labor, services,
materials, equipment rental, lodging, food, location fees and property rental.
Rebate
means an amount paid by way of return or refund on what has already been paid
or contributed by the production company.
Short
film/short form means a film less than thirty (30) minutes in length.
TV
Show/Series means any television episode or television series including
web-streamed episodes and series.
Sec. 2-2152. Eligibility Requirements of the film
development program.
(a)
The
Kansas City Film + Media Office will provide the initial review of the
applications and make a recommendation of the qualified applications that meet
program requirements to the Office of Culture and Creative Services for final
determination of eligibility.
(b) In making the
determination of whether the production meets the requirements for a rebate, an
application form must be submitted that demonstrates that the applicant will
meet the following criteria:
(1)
City Residence, Production Headquarters or Hotel Stays. Applicant
must meet one or more of the following requirements:
a.
Minimum number of hotel room nights:
1.
Two hundred hotel room nights required for a feature film; or
2.
One hundred hotel room nights required for a TV show; or
3.
Fifty hotel room nights for a commercial or corporate video; or
4.
Five hotel room nights for a short film or music video; or
b.
Executive Producer/Director has proof of residence in the City; or
c.
Production office address/headquarters are within the City.
(2)
Fees:
a.
An application processing fee of fifty dollars ($50.00) shall be
submitted before the application is considered complete; and
b.
Fees for City permits needed for production purposes shall not be waived
for applicants who qualify and are approved for the Film Development Program.
(3)
Sign a Kansas City Film Code of Cond cut compliance form.
(4)
Twenty-five percent (25%) of the principal photography days must be
filmed in the City as clearly outlined in the production schedule.
(5)
Hire a minimum of five (5) local crew and/or local principal cast employees.
A maximum of one Production Assistant may be applied toward the minimum hire.
(6) Any film or television
production receiving a rebate under this ordinance shall place a credit on each
film or television episode providing: “Thank you to the City of Kansas City,
Missouri for its generous support of this production”, “Filmed on location in
Kansas City, Missouri”, or other similar type statement as approved by the
City.
(7) Procure
and maintain proof of insurance coverage, not less than the types and amounts
as required by the City.
(8) Production
companies shall comply with all federal, state and local laws, ordinances and
regulations and must be current on all City taxes, licenses and fees.
(c)
Applicant will be required to submit all required final reports pursuant
to Section 2-2154 Final
Certification and Accounting Requirements. The production company shall provide documentation of
detailed expenditures along with proof of purchases and payments prior to
issuance of rebate pursuant to Section 2-2154.
(d) If the application is approved and
the production is determined to be eligible by the City, then the City will
execute a contract with the production company under the authority of the City
Manager. The production company must comply with all City contracting
requirements.
(e) A production company may not receive
more than two (2) contracts within the City’s current fiscal year.
Sec. 2-2153. Film Development
Program.
(a)
The rebate amount will be based on the project’s actual local qualified expenditures,
and must not deviate more than twenty percent (20%), without written consent
from the City, below the estimated expenditures provided to the City on the application
form. In no case will the rebate paid be more than one hundred percent (100%)
of the estimated spend.
(b) Rebates
are performance-based, where payments will not be issued until after the
production company has provided all the required documentation by a set
deadline and the City has confirmed compliance and verified all qualified
expenses. Qualified productions will be considered in the order in which they
are received and as funding is available.
(c)
If a production fails to meet any one of the requirements as set forth
in Section 2-2152 (b), the City shall withdraw the rebate offer with no further
obligation by the City.
(d) Productions
may qualify for one of the following tiers of rebate:
(1)
TIER 1: 3.5% Rebate on qualified City expenditures if:
a.
Minimum amount spent in the City in one of the following categories:
1.
$300,000 Feature Film with a budget of $1 million or higher; or
2.
$100,000 Feature Film with a budget under $1 million; or
3.
$50,000 TV Show Pilot or Episode; or
4.
$200,000 TV Series or Commercial Bundle; or
5.
$75,000 National Commercial; or
6.
$25,000 Regional commercial, corporate video; or
7.
$10,000 Short film or music video.
(2)
TIER 2: 7% Rebate on qualified City expenditures if:
a. Minimum
amount spent in the City in one of the following categories:
1. $300,000
Feature Film with a budget of $1 million or higher; or
2. $100,000
Feature Film with a budget under $1 million; or
3. $50,000
TV Show Pilot or Episode; or
4. $200,000
TV Series or Commercial Bundle; or
5. $75,000
National Commercial; or
6. $25,000
Regional commercial, corporate video; or
7. $10,000
Short film or music video.
b.
Additional requirements:
1.
250+ City room nights; or
2.
Film for four or more consecutive weeks in the City; or
3.
25 or more local regional crew or expatriate crew and/or local principal
cast and a minimum of one quarter (1/4) of hires must be local.
c.
Community Benefit Requirement. The principal cast, director, head of department,
and/or producer must provide a learning opportunity such as a panel discussion
or seminar for outreach to emerging artists and young people who are interested
in the industry.
(3) MARKETING BONUS: In addition to meeting the eligibility
requirements and qualifying for either a Tier I or Tier 2 rebate, a production
company must meet the following requirements to receive additional rebates on
qualified expenditures:
a.
Receive .25% bonus rebate for a video or multiple videos of testimony
content from a minimum of two (2) above-the-line production members and may
include below-the-line testimonials in addition on two (2) or more of these
subjects:
1.
City of Kansas City; or
2.
Ease of doing production in Kansas City; or
3.
Locations used on the project and what works for you; or
4.
Capability of the crew in Kansas City; or
5.
Capability of the actors in Kansas City; or
6.
Enjoyable amenities in Kansas City including hotel, restaurants, nightlife,
museums, etc.
b.
Receive .25% bonus rebate if:
1.
Project is set entirely in the City; or
2.
Project is filmed entirely in the City; or
3.
Project features or utilizes services or products from arts
professionals including but not limited to poet, choreographer, composer,
visual artist, or dancer.
Sec. 2-2154. Final
Certification and Accounting Requirements.
(a)
The following documents need to be received by the Kansas City Film +
Media Office within thirty business (30) days of the last day of filming in
order to receive the rebate:
(1)
Final Expenditure Report in a format provided by the City along with the
following attachments:
a.
Detailed documentation of final City qualified expenditures along with
proof of purchase demonstrating expenditures were bought and paid to companies,
organizations or individuals located within the city limits.
b.
Call sheet(s) showing number of people who worked on the film project
and a report on the number of days individuals worked including the rate at
which they were paid and the hours per day they worked.
c.
Greater Kansas City Expenditure Report.
(2) All expenditures must be verified by the City and are subject
to approval or denial by the City.
Sec. 2-2155. Projects not qualified
for film development program.
a. A qualified
film production shall not include:
1.
News or current events programming.
2.
Sporting event or sports programs.
3.
Gala presentation or award shows.
4.
Infomercials or any productions that directly solicit funds.
5.
Family videos.
6.
Political Ads.
7.
Productions that are considered obscene.
Sec. 2-2156. Appeals Process.
An applicant who has been denied
approval of financial support through the Film Development Program may appeal
the director's decision to the city manager or his or her designee within ten
calendar days of receiving the denial. The city manager or his or her designee
shall convene an administrative hearing. At the conclusion of the
administrative hearing, the city manager or his or her designee shall issue a
decision within thirty days and serve it on the applicant.
Secs. 2-2157---2-2169. Reserved.
_____________________________________________
Approved
as to form and legality:
________________________________
Lana
K. Torczon
Assistant
City Attorney