A proposed measure to boost Oahu’s economy by attracting more of the film industry to its shores has passed a first reading of the Honolulu City Council.

As part of its introduction, Bill 59, if adopted, would provide greater real property tax incentives for eligible film studio facilities to move here — at least those willing to spend at least $100 million toward local improvements.

So far, that plan has received a ringing endorsement from the founder and director of the University of Hawaii’s Academy for Creative Media System.

Testifying on behalf of UH, Chris Lee, an ‘Iolani High School graduate whose resume as a film and television producer and a studio executive includes overseeing films starring Tom Hanks, Tom Cruise and Jack Nicholson, said attracting such studios will bring benefits, notably higher-paying jobs.

“The UH welcomes the opportunity to support economic development and business sustainability of film studio facilities in the state,” Lee told the Council on Wednesday.

In 2022 he noted that the economic benefits related to film production in Hawaii amounted to approximately $482 million, with roughly 70% of that money spent on Oahu.

But, Lee said, there’s a problem.

“We have sort of reached a point of where we’ve kind of capped our business in terms of our success,” he added. “And the only way to increase that success … is to increase facilities and increase infrastructure.”

Lee said film facilities operating on the island basically came down to two locations: the Diamond Head stage and the Kalaeloa hangars, both of which accommodate the “NCIS: Hawaii” television series.

“But none of them accommodate a full movie or multiple television shows,” he added.

For example, Disney is expected to soon film the live- action version of “Moana” in Hawaii, he said.

“And they will be here for a little bit of time, but the bulk of it is going to shoot in Atlanta,” Lee added, namely because that Southern city happens to be home to many large film stages.

“That’s where they can do the kind of visual effects and the stage work that you see in other movies that have come here for a little bit, then had to back to the continent — ‘Jumanji,’ ‘Pirates of the Caribbean’ and ‘Jurassic Park.’”

But he said the main benefits of implementing Bill 59 come down to providing “living-wage jobs.”

“The benefit is reversing the 20 people a day that are leaving Oahu, who are all in the middle class, that are not able to find the kind of income that they can raise their families on,” Lee said. “And this has always been about job diversity.”

This concept, he added, was essentially the same as UH’s Academy for Creative Media, which is “all about keeping our kids here in Hawaii.”

“And I’m very grateful that we now have hundreds of our graduates on sets and working on all kinds of creative media jobs here in the state,” he said.

Still, some on the Council had questions.

Noting income taxes, general excise taxes and revenue generated from the film industry go largely to the state, City Council Chair Tommy Waters queried how the city might get creative in figuring out how some of those film industry dollars could directly benefit Honolulu “so that we can perhaps use some of that revenue to pay our employees more money or to build infrastructure or to solve any of the number of problems that we are currently facing,” Waters said.

In response, Lee said 82% to 88% of working film crews on Oahu are local residents. And he noted annual salaries for many in the film industry — particularly, unionized electrical and film crews — were in the six-­figure range.

“The benefits come from keeping our local families gainfully employed,” he said, “being able to have houses, being able to have cars, being able to stay here.”

But Lee admitted that Hawaii — as is the case for many other industries here — is a “very expensive place to shoot because we are in the middle of the Pacific.”

“And I don’t think we’re ever going to change that because you have to bring in a lot of stuff often, because we don’t have a full studio complex yet,” he said. “And I think economies of that scale will change those numbers and employ a lot more people.”

Ultimately, the Council voted to pass Bill 59 on its first of three readings.

Previously, Council member Augie Tulba, who introduced the measure, told the Honolulu Star-Advertiser that bringing more film studios to the island would “be a billion-dollar industry and a new leg to the economy, besides tourism.”

To create these film jobs, Bill 59 seeks to give real property tax incentives to “eligible film studios.” As drafted, the measure asks that studio owners construct or develop their new film facility with a minimum $100 million investment for “improvement costs” and see that the facility is completed within five years of the dedication taking effect.

In addition, the proposed ordinance would see an eligible film studio offer the use of studio time at discounted rates to local filmmakers, and promote workforce development through the creation of internship programs for college, university or vocational school students pursuing degrees in film or media studies, among other conditions.