by Bruce Checefsky

     (Plain Press February 2024) Cleveland City Councilman Kris Harsh, representing Ward 13, which includes Old Brooklyn, hosts a community meeting on the second Wednesday of every month. January was his 24th consecutive ward meeting. Harsh regularly invites guests to talk about current events in Cleveland and information on the various city departments and county agencies.

     The Greater Cleveland Film Commission (GCFC) was his guest at the most recent meeting at Estabrook Recreation Center, where about fifty people crammed into a room and sat on metal folding chairs. It was cold outside that night, and people came dressed in thick jackets, hats, and scarves. Bill Garvey, president of GCFC, gave a presentation. Lowell Perry, Jr., Chief Diversity Officer and Vice President of Corporate and Community Engagement, operated the image projector and added information as the meeting progressed.

     Garvey started by thanking Harsh for arranging the meeting, then launched into the local and regional film industry, reminding people that the Cleveland International Film Festival is not them but a separate entity. GCFC does not screen films. His role at the commission is to create economic development and more jobs.

     “No one knows about these jobs,” said Garvey. “They are high-paying jobs, plus we work with local vendors during film production.”

     Movie making is a business, he continued, with accounting and plumbing needs, electricians, and local vendors that supply goods and services. Garvey has been in the film industry for 26 years before joining the film commission. Perry, who has extensive acting and production skills in the industry, reminded people that a film takes dozens, if not hundreds, of local vendors and tradespeople to complete the project. 

     “These jobs contribute to your pension and provide health care, all paid for,” said Garvey, “hundreds of jobs.”

     His presentation included showing the titles of movies made in Cleveland, like Native Son, White Noise, Captain America: The Winter Soldier, American Splendor, Batman Begins, Hard Knocks, and Draft Day, with hundreds of others unmentioned, each creating jobs for the community by giving tax breaks to production companies.

     The Ohio Motion Picture Tax Credit (OMPTC) provides a refundable tax credit of 30 percent on production cast and crew wages plus other eligible in-state spending. OMPTC was created in 2009 to encourage and develop the film industry in Ohio.

     “Movies are not shot in Hollywood anymore. They are worldwide where tax breaks exist,” said Garvey.

     Policymakers believe the tax subsidies can grow or form a regional film industry, stimulate the economy through filming activity, or promote the region. Critics of the tax incentive say there is no meaningful effect on feature films or employment, wages, and establishments in the film industry and related industries. Cleveland has neither grown a film industry nor significantly gained long-term economic development.

     Despite the criticism, Cleveland City Council approved $250,000 for the Greater Cleveland Film Commission for 2024, right after Garvey swayed state lawmakers to double the Ohio Motion Picture Tax Credit from $40 million to $75 million annually, beginning in July. Productions must spend a minimum of $300,000 in the state to qualify.

     Cleveland taxpayers have paid $250,000 annually to fund the GCFC operations since 2009, money that comes from the City Hall economic development department. The National Council of State Legislatures reported in 2022 that “the states that have performed evaluations of their film tax credit programs have commonly found that, despite positive anecdotal evidence that accompanies big film projects, such programs do not provide a substantial return on investment and, if economic development is the goal, other policy avenues might be more productive.”

     Other states, including Pennsylvania, New Mexico, and New Jersey, offer more credit than Ohio. California, Georgia, and Illinois top the list of places with the highest tax credits. A recent audit of the Georgia Film Tax Credit program found that the state loses about $160,000 for every job the program creates. Georgia is spending about $1.3 billion annually on the program, but the return on investment is 19 cents per dollar, reported auditors. https://www.audits.ga.gov/ReportSearch/download/30438

     The GCFC, also known as the Greater Cleveland Media Development Corporation, is a 501(c)3 private non-profit organization. Their third annual documentary spotlight, featuring the locally produced film “Reverse RideAlong,” will be held on Saturday, February 10, at Tri-C Metropolitan Campus, 2900 Community College Ave. This locally produced documentary promises to transcend the conventional narrative of policing and serves as a call to action. The film starts at 4:00 pm, followed by a reception from 5:30 to 6:30 pm and a filmmaker Q&A at 6:30 pm.

     Free Production Assistant Workshops, which include film set terminology, protocols, etiquette, and scouting filming locations, are offered by GCFC.

     Perry encouraged people to register on the GCFC website if they are interested in finding work; production companies look for local resources there.

     “No guarantees,” he said. “The only guarantee is that if you do not register on our website, for sure nobody will call you. If you are, maybe you have a chance.”

     Later in the meeting, Harsh gathered around a group of people there to catch up on the local community and city news. The Bibb Administration introduced legislation to create a new tax increment financing (TIF) district. The proposed Shore-to-Core-to-Shore TIF District will create leverage growth in downtown Cleveland and, according to the City of Cleveland website, “support public improvements that will transform the city waterfronts, improve the downtown core, and fund investments in parks and public spaces across Cleveland neighborhoods.” 

     Harsh felt a need to explain. “TIF is used by developers to get their investment back faster because some of the taxes, instead of going to the county or city, go to the lender,” he said.

     As redevelopment causes property values to increase, more taxes get collected from within the TIF district. Any additional tax revenues are in a reserved special fund. Once the TIF is paid off, local governments can use future property taxes for road maintenance, schools, etc. 

     Jeff Epstein, City of Cleveland Chief of Integrated Development,said leaders plan to use the money to fund master plans like the Northcoast Connector land bridge between Downtown and Lake Erie and improve the lake and riverfront.

     Bloomberg News reported that while TIF is not a direct tax increase, it may lead to higher rates or service cuts elsewhere. Transparency, or how the money gets used, is the biggest concern because the process effectively bypasses the public municipal budget process.

     The Bibb administration estimates the plan could bring in billions of dollars without forfeiting money for public schools.

     “We should be selfish as Clevelanders and support new TIF legislation,” said Harsh.