XPost: alt.fan.rush-limbaugh, alt.politics.republicans, talk.politics.guns
"Los Angeles may become the next Detroit."
<
https://www.dailymail.co.uk/yourmoney/article-14625889/west-coast-city-danger-detroit.html>
'A glamorous city known for sprawling mansions, boutique shops and
glamor is at risk of becoming 'the next Detroit,' according to experts.
Los Angeles is being rocked by an exodus of big budget TV and film
production companies — long considered the backbone of the local
economy.
Detroit was once the center of America's auto production, but fell into
decline when factories began to shut, triggering a major housing crisis.
Now, some fear LA faces a similar threat. FilmLA reports that
on-location production in the city fell by 22.4 percent in the first
quarter of 2025 compared to the same time last year.
High state taxes are a major factor pushing studios and production
companies to shoot elsewhere.
Industry leaders are pushing California to extend an entertainment
production tax credit to 35 percent of spending in a bid to stem the
flood of projects leaving town, Realtor.com reported.
The issue came to a head at a city town hall on Monday, where advocates
pushed for broader eligibility and increased incentives.
'This is not hyperbole to say that if we don't act, the California film
and TV industry will become the next Detroit auto,' producer Noelle
Stehman told the event according to The Hollywood Reporter.
Los Angeles is at risk of becoming the 'next Detroit' according to film industry leaders
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Los Angeles is at risk of becoming the 'next Detroit' according to film industry leaders
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Detroit was once a thriving economy thanks to General Motors, Ford and
Chrysler all having their manufacturing headquarters there.
However, when the plants moved on in the 1960s, the city was left
decimated.
The loss of jobs, coupled with the mortgage crisis, drove millions from
their homes in the 2000s as their properties were left worthless.
Less than two decades ago, one in five houses stood empty in the city,
with foreclosures mounting and properties on deserted streets being sold
for $1.
One of the main issues is Tinsel Town's spiraling housing costs that are pricing out middle class production workers, according to Senator Ben
Allen.
The median income in the city is $95,625, yet the median home sale price
in 2025 is almost 10 times that at $965,300, according to Realtor.com
data.
'The studios don't care where they do the work. They'll do it anywhere,'
he said at the city town hall.
'They're still producing shows. What a lot of our colleagues simply
don't understand is that this is a middle-class problem.
'The studio heads are going to bed in Bel-Air no matter what' he added.
Larger and more widely available tax cuts for the entertainment industry
have received support from Governor Gavin Newsom.
Newsom promised back in October to increase film incentives from the
current cap of $330 million to $750 million.
Detroit was once a thriving economy but has become dilapidated since the
1960s
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Detroit was once a thriving economy but has become dilapidated since the
1960s
Governor Gavin Newsom supports further tax incentives for film and tv productions
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4
View gallery
Governor Gavin Newsom supports further tax incentives for film and tv productions
SAG-AFTRA members on strike during Halloween on October 31, 2023
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SAG-AFTRA members on strike during Halloween on October 31, 2023
Read More
City where house costs $90k is hailed as next Paris or Rome
article image
Newsom's proposed SB630 bill will be heard by lawmakers at the end of
April.
The film and TV exodus is more bad news for Hollywood following 2023's SAG-AFTRA strikes and the devastating wildfires that ripped through the
city causing billions of dollars worth of damage earlier this year.
'Loss of filming opportunity in no way compares to the cost of the Eaton
and Palisades Fires in terms of loss of life, resident displacement and property damage,' FilmLA VP of Integrated Communications Philip
Sokoloski said in a statement.
'The fires sent many productions scrambling to reschedule shoots and
displaced hundreds of industry workers from their homes. But their
impact on local filming levels appears to have been temporary.'
California has already seen the recent loss of a host of glamorous
A-listers including Eva Longoria, Richard Gere and Matthew McConaughey'
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