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Santa Fe County and Santa Fe Studios have executed a forbearance agreement that protects taxpayers’ interests while allowing Santa Fe Studios time to continue to bring jobs to Santa Fe County and to find investors. Under the forbearance agreement, the County agrees to postpone until June 13, 2016, a suit against Santa Fe Studios for its existing defaults under its agreements with the County. In exchange, Santa Fe Studios paid a $25,000 forbearance fee, $183,769.26 toward past due amounts, and $88,254.04 in delinquent property taxes, penalties and interest. The County and Santa Fe Studios also agreed to a calculation of past due amounts, among other considerations.

Santa Fe County and Santa Fe Studios are parties to various agreements concerning the studios located on NM Highway 14. In 2010, Santa Fe County sold Santa Fe Studios land for $2.62 million, payable with interest in installments tied to job creation, with a balloon payment due on December 14, 2015. In addition, Santa Fe Studios agreed to build two soundstages and other facilities on the site, and Santa Fe County provided assistance to Santa Fe Studios under the Local Economic Development Act in the form of infrastructure, water rights, a loan guarantee and construction funding from State capital outlay appropriations.

As stated by Lance Hool, “Santa Fe Studios invested millions of its own dollars to construct the facilities and create significant job growth both around the state and within the local Santa Fe region; but due to a stalling global economy and capacity limitations on the production size it could attract, was unable to pay in full the land purchase price and interest when due.”

“There are many benefits of the forbearance agreement to the County and taxpayers,” County Manager Katherine Miller said. “We received $25,000 as a forbearance fee. Santa Fe Studios also paid its delinquent property taxes, which benefits all taxing authorities, including public schools. Additionally, Santa Fe Studios paid a significant amount toward its past due amounts and has agreed to pay additional interest during the forbearance period as it accrues. Finally, in the event Santa Fe Studios is unsuccessful in raising necessary capital to pay for the land, the confession of judgment will significantly reduce the time and legal fees it would cost to foreclose on the Studios.”

“We are grateful that Santa Fe County has agreed to work with us to find a productive solution to this situation – which will allow us to continue bringing jobs and economic development to our County and to meet our current obligations. Hopefully, during this extension period, we will also be able to identify investors who will help us expand the Studios. As we have said for over a year now, we need at least two additional soundstages to be competitive in the New Mexico market,” Lance Hool said. “With the right backing, we will continue building upon the foundation we have laid since opening in October, 2011.”