Las Cruces council to consider $1.3 million for NMSU film studio
Las Cruces City Council will consider a $1.3 million contribution to NMSU's Arrowhead Studios project, including conditions for spending and oversight.
Proposed agreement would help complete Arrowhead Studios' interior spaces, with construction expected to finish in May 2027
Damien Willis, Organ Mountain News
LAS CRUCES - The Las Cruces City Council will consider a $1.3 million contribution Monday to help complete New Mexico State University's Arrowhead Studios film production campus, a project intended to attract larger productions and expand the region's film industry.
The proposal, scheduled for the council's 1 p.m. meeting Nov. 2, would authorize a memorandum of understanding between the city and the NMSU Board of Regents. The funding would help finish the interior spaces of the studio complex at Arrowhead Park, including its soundstage and production support facilities.
The project received $15 million from the New Mexico Economic Development Department in late 2024 as part of the state's Media Arts Collective initiative. That funding remains sufficient to develop the site and construct the shells of two buildings, according to the council agenda packet.
However, additional design work and consultations with film industry representatives identified operational requirements that increased the cost of completing the interiors.
NMSU subsequently sought another $3.9 million, divided equally among the university, Doña Ana County and the city of Las Cruces.
Without that additional funding, city documents say the soundstage and supporting buildings would have to be reduced in size, potentially leaving the facilities unable to accommodate full-scale productions meeting industry standards.
Damien Willis
What the city's $1.3 million would fund
Under the proposed agreement, Las Cruces would make a one-time payment of $1.3 million within 30 days after the agreement takes effect.
The money would support interior improvements and finishes associated with the soundstage, production offices, construction mill and other studio infrastructure.
The agreement includes provisions governing how the city's contribution may be spent, along with financial reporting and oversight requirements.
NMSU would be required to submit quarterly financial and construction reports documenting expenditures, invoices and the remaining balance of the city's contribution. Annual reporting to the City Council is also required.
The city would retain audit rights and could seek recovery of funds used for unauthorized purposes.
The agreement also provides for city staff and officials to use the completed studio for municipal media production at low or no cost when reasonable under the circumstances.
Construction and operations
The project held its groundbreaking in September 2025. The council agenda packet lists May 2027 as the anticipated completion date for the site and two building shells, although it does not establish the project's current construction status.
If the additional funding is secured, the interior spaces are also expected to be completed by May 2027, allowing the facility to become available for industry use.
NMSU has signed an agreement with Automatic Entertainment to operate the facility. The company is expected to produce its own films at the studio and lease space to other productions.
The project is intended to establish a film production hub in southern New Mexico, supporting economic development and workforce opportunities in the industry.
Council decision follows earlier funding discussions
The proposed city contribution follows funding discussions involving NMSU's Board of Regents earlier this year.
In August, Organ Mountain News reported on the university's effort to secure an additional $3.9 million from NMSU, Doña Ana County and Las Cruces to complete the studio's interior spaces.
Monday's resolution would specifically authorize the city's participation through the proposed memorandum of understanding.
The council's agenda summary states that the action would not amend the city budget. The agreement nevertheless makes the city's obligations subject to sufficient appropriations and authorizations.
Council members may approve the agreement, reject it or postpone action.
The meeting begins at 1 p.m. Monday, Nov. 2, in the City Council Chambers at Las Cruces City Hall, 700 N. Main St.
Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.
