Las Cruces Approves $1.3M for Studio Project
The city council's funding vote helps close a gap in the state-backed Arrowhead Park Studios production center.
Updated on Nov. 7, 2026 in Film — General
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The Las Cruces City Council unanimously approved $1.3 million for the Arrowhead Park Studios production center, matching contributions from Doña Ana County and New Mexico State University. The additional $3.9 million total is needed as the state's estimated project cost has risen above the original $15 million.
Why it matters
Without the added funding, the soundstage and support buildings would have to be scaled down, affecting the region's ability to host film productions. Outside productions have had to adapt warehouse spaces because industry-standard soundstages have not been available locally.
The 36,400-square-foot production center is projected to generate up to $500,000 in annual lease revenue, according to the city's estimates. Whether that revenue will fully offset the increased construction costs has not been determined.
The players
New Mexico Economic Development Department
The state agency that asked local governments to contribute to the studio project and oversees film industry incentives in New Mexico.
828 Productions
The film company whose partnership with the city ended in February and which has since sued the city and state EDD.
New Mexico State University
The public university whose regents approved a 12-year agreement to host the studio and contributed $1.3 million to the project.
The details
The state Economic Development Department asked the university, county and city to each contribute $1.3 million from money set aside in 2015 for cinematic infrastructure. The city also ended its partnership with 828 Productions in February, and that company has taken the city and state EDD to court.
Timeline
2015: Funds were set aside for cinematic infrastructure.
2024: NMSU regents approved a 12-year agreement with the state EDD.
February 2026: The city ended its partnership with 828 Productions.
August 2026: Construction on the studio facility began.
July 2027: Completion of the facility is currently projected.
Industry Dynamics
New Mexico film project counts peaked at 112 in fiscal year 2022, and the state's production spending has since grown to $327 million in 2026. The studio push reflects competition with Albuquerque as the state's main production hub, with Las Cruces seeking its own soundstage capacity.
Local productions that have been using warehouse spaces may gain access to purpose-built soundstages once the facility is complete. The timing of that access depends on the July completion target being met.
The takeaway
Local funding decisions are shaping whether Las Cruces can compete for film work that has otherwise gone to larger production hubs. The outcome will show whether public investment can attract sustained production activity to the region.
What happens next
Completion of the Arrowhead Park Studios facility is currently projected for July.
Further reading
For broader context on the state's production landscape, see Film — General coverage in Las Cruces.
Source note: This article includes information reported by Abqjournal.
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