The Las Cruces City Council has ended its economic development partnership with 828 Productions and is seeking to recover about $1.3 million in taxpayer money. The film studio failed to meet its investment and job-creation promises made three years ago. This decision highlights increased attention on how public incentive deals are managed and how local governments hold companies accountable.
The council voted 6 to 1 on Monday to end a 2022 agreement that had been seen as a major step toward making southern New Mexico a film and television production center. 828 Productions had promised to spend $75 million to build a large studio and facilities in Las Cruces and to create at least 100 local jobs.
City officials said the company failed to meet its goals and could not substantiate many of its reported expenses. While 828 Productions brought some production work to the area and highlighted local spending, city leaders said there were only a few permanent hires and little progress on the planned facilities. Properties purchased for renovation have deteriorated, not improved.
The end of the partnership affects almost $900,000 in Las Cruces capital outlay funds and $2.8 million in city-approved economic development contributions. It does not affect the separate $3 million in state economic development funds for the project the city manages.
Councilors said this experience showed that the city needs to improve its monitoring of performance and spending under economic incentive agreements. City staff are now implementing stricter oversight procedures to better track future projects that use public funds or tax breaks.
828 Productions said it was “disappointed” with the decision and did not agree with the council’s view. The company called the vote “rushed” and said it still helps drive the local film industry. It also said it has had difficulty adjusting its business model following changes in the broader film sector.
The original agreement was part of New Mexico’s broader push to attract film-industry investment through tax incentives, rebates, and local funding. This effort has helped build a statewide production network with major partners such as Netflix and NBCUniversal. The Las Cruces case highlights the risks cities face when they use public funds for private development projects.
Councilors raised concerns about billing records and the use of city funds for expenses that did not clearly align with project goals. Economic development officials said some invoices were unclear or did not comply with the agreement, particularly for properties the city helped fund that the company no longer owns.
The lone dissenting vote came from a council member who expressed caution about the potential long-term impact on local business relations. Supporters of the termination argued it was necessary to protect taxpayer resources and uphold fiscal accountability.
Las Cruces has seen continued investment in film production infrastructure outside the 828 project, including New Mexico State University’s recent ground-breaking on a $15 million movie studio and the city’s broader incentives aimed at attracting film production work.
As the city moves on, economic development officials say they will use lessons from the 828 partnership to strengthen future contracts and ensure public funds are matched with verifiable performance.