During the southern Arizona filming of Stephen King’s miniseries “Desperation,” the one-day closure of a busy Tucson street backed up traffic for hours, and some merchants had to temporarily close shop.

Businesses and local government officials, however, were more than happy to deal with the inconvenience. The seven-week production, which included a month in Bisbee, is projected to leave Arizona $6 million richer, the Tucson Film Office said.

And business was still good at places affected by the production.

“It was good even with these closures for two days,” said Sally Mellor, the general manager of Bisbee Food Co-op, which was used as a set on the film. “Even our customers were thrilled they were here.”

While Arizona has seen only two other television movies in the last seven years, the state used to bring in more than $100 million annually from productions that included big-budget films, TV shows, commercials and catalog shoots. Today, the state only draws about a third of the revenue that it had in the late 1980s and the early 1990s.

Competition From Other States

Productions aren’t shot as frequently in Arizona because other states and countries have aggressively sought projects by offering incentives, ranging from tax rebates to loans and free extras, officials say. Some foreign countries also enjoy a monetary exchange advantage.

“It’s really tough to market Arizona as a production location, competing with places like New Mexico that’s offering financial incentives, for instance a 15 per cent rebate on everything they spend locally,” said Shelli Hall, director of the Tucson Film Office.

States vie for big Hollywood projects because they create a huge economic impact, Ms. Hall said.

“It’s like tourism but very condensed and plus they spend a lot more money than a tourist,” Ms. Hall said. “They’re hiring people, they’re using services, they’re buying lumber and paint. Whole wardrobes for casts are being dry cleaned and ironed … We don’t have to build an infrastructure for them. Any other industry, you have to build homes, schools, roads.”

The efforts of private businesses and local governments in Arizona helped secure the three-hour miniseries, scheduled to end production in mid-December, after scouts also looked at Canada, Australia, Montana, New Mexico and Nevada, officials said.

The Tucson Convention Center was offered at a reduced rate for seven weeks. The Phelps Dodge copper mine in Bisbee provided props and workers needed to create a set that looked like a mining town. Hotels and other services also gave discounts to the film crew.

If the state had more incentives to offer, it would have been an easier sell, said Mike McGinn, location manager for “Desperation” and president of the Arizona Film and Media Coalition.

Mr. McGinn formed the coalition this year to sponsor legislation that would benefit filmmakers who bring their productions to Arizona.

The state already offers a 50 per cent sales tax rebate if a production company spends more than $1 million and eliminates the state tax for lodging if the stay exceeds 30 days, but more could be done to compete with other states, Mr. McGinn said.

In the last decade, “productions were declining to a point that people can’t make a living,” Mr. McGinn said. “I think if it were brought to the legislators’ attention the amount of revenue and tax dollars that could be generated, they would help support initiatives to bring more production to Arizona.”

At Old Tucson Studios, which has set the stage for Western films and TV shows dating back to 1939, officials are creating their own incentives to draw filmmakers.

There are plans to expand the studio and build new sound stages to attract both western and nonwestern projects. This year, a deferment program took effect that would allow a production company to pay location fees after the film’s release.

“Late last year, we changed our focus. We’re going back to the production studio, and I think that’s why we’re seeing more interest,” said Pete Mangelsdorf, CEO of Old Tucson Studios, which has doubled as a tourist attraction.

It is slated to be the backdrop for two major movies and four smaller films next year.

State legislators recognize the movie business as a viable industry and undertaking in Arizona, said Harry Tate, director of the Arizona Department of Commerce Film Office.

The Arizona Department of Commerce is planning to release a study by January that will show how the movie industry directly and indirectly generates revenue and creates jobs in the state. —