The Citizen Media Group

Santa Fe Screenwriting Conference Draws 17 Producers

By Diane Velasco

The allure of the City Different coupled with the hope of finding some raw talent is drawing 17 Hollywood producers and executives to the shadow of the Sangre de Cristo Mountains May 30 to June 3.

The reputation of The Screenwriting Conference in Santa Fe, now in its ninth year, spreads among movers and shakers, who compel each other to come.

The five-day event is not like “all the other” conferences, and it’s better than film festivals for finding scripts, producers say.

AG Creates Immigrant Services Unit

New Mexico Attorney General Gary King has created a new component in his Consumer Protection Division to deal with immigrant related issues. The Immigrant Services Unit will address issues such as immigrant-targeted consumer problems; wage claims and working conditions; development of illegal “colonias” that target immigrants; and victim assistance.

“Immigration policy is largely a federal issue, but as the State’s top law enforcement agency, the Office of the Attorney General may help ensure that state laws are followed and immigrants are not treated unfairly or unlawfully after their entry to our State,” King says.

AG Warns of Va. Tech Scams

New Mexico Attorney General Gary King is warning New Mexicans that several new web sites have been registered using domain names that might exploit last week’s massacre at Virginia Tech.

“Often after such tragedies, scammers attempt to prey on people’s generosity in order to solicit donations for fraudulent or non-existent ‘charities’ that supposedly support victims of tragedy,” King says.

ABQ Studios Owners Leveraged Albuquerque, Culver Name in Hollywood Deal

Katersky Takes Show on the Road to South Carolina
By Diane Velasco

Albuquerque Studios owners Dana Arnold and Harold Katersky’s standard line that they owned The Culver Studios helped them land the $41 million Hollywood office building project featured on their Pacifica Ventures web site.

The two also recited their experience redeveloping a Culver Studios building, a nearby parcel of land, and the Albuquerque Studios project to convince the Community Redevelopment Agency of Los Angeles to buy the Hollywood land from them for $5.4 million last fall, according to documents on record.

ABQ Studios Exec Under Subpoena

By Diane Velasco

Albuquerque Studios executive Nick Smerigan is under subpoena in the lawsuit against the studios’ owners Dana Arnold and Harold Katersky brought by former business partner F. Lee Tomlinson.

O’Malley Move Draws Fire from Taxpayer Group

Albuquerque City Council President Debbie O’Malley was sponsoring a resolution that would appropriate $224 million for a controversial streetcar project – until taxpayers caught wind of it late last night.

Culver Sues! ABQ Studios Owners Face Fraud, Racketeering Charges

By Diane Velasco

Note to readers: This is part five in an investigative series on Albuquerque Studios owners Dana Arnold and Harold Katersky, principals in California-based Pacifica Ventures. See parts one through four at the end of this story.

Dana Arnold

The real owners of The Culver Studios are suing Albuquerque Studios owners Dana Arnold and Harold Katersky alleging fraud, racketeering, misrepresentation and other charges related to their management of the historic California studios from April 5, 2004 to Nov. 1, 2006 and use of The Culver Studios name for their own purposes.

Hal Katersky

The lawsuit, filed Monday in California Superior Court, Los Angeles County, alleges the men inappropriately used more than $1 million of Culver Studios’ money, including at least $12,000 spent in pursuing the New Mexico studio deal.

Forest City’s Supporting Role: Developer Has Most to Gain, and Lose, from ABQ Studios

By Diane Velasco

Note to readers: this is part four of an investigative series. Albuquerque Studios owners Dana Arnold and Harold Katersky could not be reached for comment despite repeated attempts to contact them through their attorney and Nick Smerigan, vice president of Albuquerque Studios. Find links to first three parts at the end of this story.

Albuquerque Studios is the first high-profile project Forest City Covington, developer of the Mesa del Sol area, has been able to attract.

The project garnered national media attention, starting in early 2006 with a Forbes magazine article declaring Albuquerque the number one place to do business. The article said The Culver Studios, the famous studio complex in California, was building a 500,000-square-foot film studio complex in the Duke City.

A 12-page spread in the Hollywood Reporter last September on New Mexico’s rising film industry and Albuquerque Studios said the project “is backed by Pacifica Ventures, owner of The Culver Studios.”

Yet Pacifica Ventures is not, and never has been, the owner of The Culver Studios. (See part one of this series.) And The Culver Studios is not involved with Albuquerque Studios.

No doubt the public misperception was built by Albuquerque Studios owners Dana Arnold and Harold Katersky, principals in Pacifica Ventures who managed The Culver Studios for 30 months.

But in almost every public reference, Michael Daly, chief operating officer of Forest City Covington, also linked Albuquerque Studios with The Culver Studios.

Albuquerque Studios Owners’ Star Performance Belies Backstory

Their Past Takes Center Stage
By Diane Velasco

Note to readers: This is part three of an investigative series on Dana Arnold and Harold Katersky, owners of the Albuquerque Studios. Part one of this series debunks the claim their California-based company Pacifica Ventures owns historic The Culver Studios. Part two examines their claims of international experience. The two men have not returned calls for comment.

Albuquerque Studios Owners Dana Arnold and Harold Katersky go back a long way. Their company Pacifica Ventures, does not.

The company’s web site declares:
“Pacifica Ventures was created over a decade ago to take advantage of unique real estate and business opportunities in the entertainment industry, primarily focusing on the acquisition, development, and operation of entertainment industry production and filming facilities…”

“Pacifica Ventures serves major Hollywood studios, producers, and members of the entertainment community…”

Arnold’s Aspirations
The first statement more aptly describes Dana Arnold’s aspirations than actual accomplishments. And Pacifica Ventures has not served any other major Hollywood studios, other than The Culver Studios.

“All the World’s a Stage”: Pacifica Venture’s International Claims Examined

By Diane Velasco

Note to readers: This is part two of an investigative series on Dana Arnold and Harold Katersky, owners of the Albuquerque Studios. Part one of this series debunked the claim their California-based company Pacifica Ventures owns historic The Culver Studios. Neither man returned repeated calls for comment.

“All the world’s a stage and all the people merely players…”

Dana Arnold

Albuquerque Studios owners Dana Arnold and Harold Katersky give 21st century meaning to Shakespeare’s observation with their claims of international experience. Their Pacifica Ventures’ web site declares:

“Pacifica’s growing family of studio facilities specifically designed to serve the feature film and television industry, makes up the cornerstone of a unique world-wide network of specialty stage facility and production centers that will continue to obtain significant demand from major producers of content from Hollywood as well as all the emerging content production centers throughout the world.”

Hal Katersky

But, alas, it’s curtain call: Pacifica Ventures International LLC was not set up until June 14, 2006, according to California business registration records.

Special Report: ABQ Studios Owners Target of Lawsuit, Culver Audit

By Diane Velasco

Note to readers: This is part one of an investigative series. These stories are based on our review of more than 230 pages of court documents, corporate filings and other records, as well as interviews with confidential sources close to both the lawsuit and audit. A second lawsuit is expected to be filed soon.

Dana Arnold

Albuquerque Studios principals Dana Arnold and Harold Katersky are being sued by F. Lee Tomlinson, a former business partner in the company that set up Albuquerque Studios , Pacifica Ventures.
The men were involved in the negotiations with Sony Pictures Entertainment when Sony decided to sell the famous The Culver Studios in 2004.

Hal Katersky

The lawsuit has brought Pacifica Ventures into the spotlight.

Though the company has been hailed repeatedly in mainstream media reports as the owners of the California studios, it does not and never did own The Culver Studios.

Domenici, Bingaman Fight Funding Cuts to Health Care for Undocumented Immigrants

Bingaman Introduces Bill to Restore State Authority on Citizenship Proofs

New Mexico’s U.S. Senators Republican Pete Domenici and Democrat Jeff Bingaman joined a bipartisan effort to warn against reducing federal funding reimbursements to local hospitals, physicians and ambulance services for the care they give undocumented immigrants.

In a separate move, Bingaman introduced legislation that would restore states’ rights in determining appropriate citizenship proofs to qualify for Medicaid.

Tech Summit Draws Seven Countries

Even as Sandia National Laboratories is absorbed in its revived war-time mission, at least one significant international peace-time initiative remains.

Never Again--Weary Lawmakers Pass Bill to Limit Bills

Weary lawmakers in both the state House and Senate passed a resolution introduced by Rep. Henry Kiki Saavedra, D-Albuquerque, that would reduce the number of bills introduced in the Legislature.

Bingaman Bill Gives Greater Access to Presidential Papers

U.S. Senator Jeff Bingaman, D-N.M., has introduced legislation that would repeal President Bush’s Executive Order 13233, which bars public access to presidential papers.

Regional Housing Reform Bill Killed – Again

“The Poor of New Mexico Are the Losers…”

Democrats killed a second attempt to reform the state’s beleaguered regional housing authorities late Tuesday night.

Senate Bill 519 by Mary Kay Papen, D-Las Cruces, was the last bill heard, at 11 p.m., in the House Business and Industry Committee only to be tabled on a party-line vote, with the exception of Dona Irwin, D-Deming.

It’s companion House Bill 997 met the same fate earlier in the session.

Sony May Move 100 Jobs to Albuquerque

Sony Pictures Imageworks may move 100 jobs to Albuquerque from Culver City, Calif., if the state’s
incentives for filmmakers hold up through the legislative session.

Plans include eventually moving 300 of the company's 900-member workforce to the Duke City, according to the Los Angeles Times that reported the deal Friday.

Neither company officials nor New Mexico officials are commenting publicly yet.

22 Tax Relief Measures Passed in One Day

In perhaps an unprecedented move, the New Mexico House of Representatives passed 22 tax-related bills on Monday. The bills make up the bulk of $115 million to $125 million in tax credits, exemptions and deductions expected to be passed by the Legislature.

Housing Reform Bill Killed

The House Business and Industry Committee killed a bill that would have shut down the state’s scandal-ridden regional housing authorities and replaced them with a system overseen by the Mortgage Finance Authority. The bill also would have required audits of the seven housing authority regions.

Public Access Channels Threatened by FCC Action: Alliance Meets in Albuquerque

Thousands of people in Albuquerque use Channel 27, the public access channel, to communicate with the community. The station has at least 500 active producers of religious, educational and political programs, as well as hobbyists’ programs, like the New Mexico Gun Collectors.

But the station, like others around the country, is threatened by a new FCC ruling that could change the channel’s funding base – cable franchise fees. No one knows exactly what the final wording of the secretive ruling will be when it is published, says Steve Ranieri, executive director of nonprofit Quote-Unquote that runs the Albuquerque channel.

NM Film Producers Form Coalition, Propose Legislation

Several New Mexico film producers have formed a coalition and want a task force created to evaluate how the state’s film incentive program could help them as well as large, out-of-state studios.

“It’s not a whining committee,” says coalition spokesman Luca Ceccarelli with HDNM Entertainment. “We applaud everything happening in the state. We just want to make sure we stay on target with the original plan of creating a sustainable New Mexico film economy, and catering to run-away productions is not sustainable.”

Congressional Delegation Questions, State Republicans Act

The state’s congressional delegation continues to scramble to address how New Mexico’s National Guard came out dead last nationwide in equipment assessments by the Government Accountability Office.

The delegation was swift in demanding answers from the Pentagon -- they issued a joint letter to Francis J. Harvey, Secretary of the Army, with a list of questions. The Citizen was also swift in demanding answers – we asked each lawmaker just one pointed question. Meanwhile, state Republicans have taken swift action.

IRB Money Funds Billion $ Intel Investment

Intel will invest as much as $1.5 billion to upgrade Fab 11X at its Sandoval County plant. The money is made possible by the $16 billion industrial revenue bond the county issued to the tech giant in late 2004, says Liz Shipley, spokeswoman.

Citizen Action Kills Bomb Test: Divine Strake Canceled

It’s official. The proposed bunker-busting bomb test dubbed “Divine Strake” that seemed destined for White Sands Missile Range, is dead.

The Defense Threat Reduction Agency announced it has canceled plans for the test after facing public outcry everywhere it was proposed.

Taxpayer Group Issues Call to Action

Taxpayers, unite -- The grassroots taxpayer group Stop Wasting Albuquerque Taxes, has issued a call to action for other citizens to protest the Albuquerque City Council and Mayor Martin Chavez’s determination to get a $300 million streetcar project back on track.

The call to action went out to city neighborhood associations and the media:

“We ask you to email all of the city councilors and the mayor and reiterate your objection to this project without an unbiased, comprehensive study and the direct consent of the voters. Let them know in clear terms that responsible voter-taxpayers passed the original tax, that we haven't approved a street car system, and that we demand this issue be decided by voters at the municipal election this fall.”

Small Businesses Say Yes to Limit State Spending, No to Mandatory Health Insurance, Split on Immigration Enforcement

Most New Mexico small business owners favor limiting state government spending, reject mandatory health insurance, and are split on investigating citizenship status of employees, according to an annual poll by the National Federation of Independent Business.

Results with at least a 60 percent support or opposition rate become the official lobbying position of NFIB.

House Approves Border Bills

The House approved creating a Border Security and Border Affairs Committee while agreeing to call on the U.S. Congress to create a national immigrant worker program. The bills are part of a four-part border package by Rep. Jeff Steinborn, D-Las Cruces,

Miffed Motorists Get Senate Sympathy

Motorists miffed enough at Albuquerque’s traffic camera system to contact their lawmakers have been heard. The Senate unanimously passed a bill that would require flashing yellow warning beacons to alert motorists the light will be red by the time they enter the photographed intersections.

Citizens Empowered by Proposed Anti-Corruption Bills

Conclusion of a three-part series on ethics reform measures.

Citizens would be empowered to join the fight against public corruption with Rep. Joseph Cervantes’ Fraud Against Taxpayers Act and Sen. Sue Wilson Beffort’s Whistleblower Protection Act.

Governmental Conduct Act Like Swiss Cheese: Bill Tries to Fill Holes

Part two of a three-part series on ethics reform measures.

New Mexico’s 30-year-old law governing the conduct of politicians has so many holes, it’s more like Swiss cheese than ethical safeguard. House Bill 823 by Rep. Joseph Cervantes, D-Las Cruces, would fill some of those holes by:

Ethics Reform Package Offers Key Changes: Dems Champion Bills

Part one of a three-part series on ethics reform measures.

Suddenly, being honest is “in” among the state’s politicians. More than a dozen bills dealing with political ethics have been introduced in the Legislature, almost all by Democrats. The bills include a package of key changes recommended by the Ethics Reform Task Force that Gov. Bill Richardson convened last year after a series of scandals in his administration.

They include:

SBA Sends Valentine to NM Small Businesses

Small businesses are the heart of New Mexico’s economy, and the Office of Advocacy of the U.S. Small Business Administration is sending them this Valentine:

Ten Reasons To Love New Mexico Small Businesses

10. Small businesses make up 96.2 percent of all New Mexico employers.

9. Small businesses create more than 50 percent of the American nonfarm private gross domestic product (GDP).

8. Small patenting firms produce 13 to 14 times more patents per employee than large patenting firms.

7. The 153,800 small businesses in New Mexico are located in every community and neighborhood.

NM Studio Lands Major Film

Rio Grande Studios is the first New Mexico company to land a major motion picture deal. Owners Michael Jacobs and Ruby Handler Jacobs say they have signed an agreement with London-based Turn of the Century Productions to co-produce the $50 million action thriller “Judgement Day.”

Crime Victims Would Get Employment Protection Under Bill

A bill sponsored by Rep. Gail Chasey, D-Albuquerque, that would protect the employment status of victims of crime passed the House with a vote of 66-0.

Petty Thieves Take Note: Small Embezzlements Become Felony Under Bill

Petty thieves and illegal drug users would face felony charges under a bill that would allow authorities to add each occurrence of embezzlement together and apply stiffer penalties.

AG Approves Gov’s Fundraising

In one of his first sticky situations since taking office last month, Attorney General Gary King today issued an opinion that says Governor Bill Richardson’s presidential run fundraising does not conflict with state law.

Republicans Propose Spending Restraint: Dems Rebuff It

Republican lawmakers Rep. Tom Taylor of Farmington and Sen. Kent Cravens of Albuquerque have proposed a constitutional amendment to limit state spending.

“I have talked to people on both sides of the aisle who recognize we are spending too much money,” Taylor says.

The goal is twofold: control the growth of state government and thereby control tax increases on the public; and to provide the Legislature with a reason to prioritize spending.

But leading Democrats were swift to rebuff the proposal.

Bush Budget Whacks NM

Everything from New Mexico's national labs to health care, and education to law enforcement got whacked in President Bush’s $2.9 trillion budget unveiled Monday. Both of the state’s federal senators, Pete Domenici and Jeff Bingaman lament the proposed cuts.

“I’m not happy about this budget’s recommendations for the national labs, education and health care,” says Domenici. “It is clear that we will have to work hard to make up funding where we think it is most needed.”

Bill Would Give More Warning, Fewer Tickets to Motorists

Calling red light cameras “a guise to raise money for the city of Albuquerque,” Sen. Bill Payne, R-Albuquerque, is proposing an advanced warning system that he says will cut down on tickets while making intersections safer.

Eminent Domain Abuse Addressed

Will the government take your home, land or business? It’s already happened to people in Rio Rancho, and may happen to a private water company too.

New Mexico’s laws on eminent domain are so broadly written, virtually anyone’s property can become a takeover target, says former Lt. Gov. Walter Bradley. Bradley served on Gov. Bill Richardson’s task force charged with reviewing state laws on the matter.

“The definitions of blight and slum are so broad Rio Rancho used them to declare vacant land a blight,” he says. “That’s stretchin’ it, in my opinion.”

Ethics Reform Bill Dies

An ethics reform bill that would have increased penalties on government officials convicted of felonies committed in office died in the Senate Judiciary Committee.

Senate Bill 4, “Enhancing Penalties for Felonies Committed by Elected Officials,” was sponsored by Sen. John Grubesic, D-Santa Fe. The bill would have allowed courts to add fines up to the value of an official’s salary and fringe benefits accrued from the time the crime is committed to expulsion from office.

U.S. Senate Passes Minimum Wage: NM Bills in Limbo

Both of New Mexico's federal senators Pete Domenici and Jeff Bingaman have voted to increase the minimum wage to $7.25 within two years. The Fair Minimum Wage Act passed Thursday by 94-3. The U.S. House of Representatives passed a similar bill a few weeks ago by 315-116.

The U.S. Senate bill includes a tax package that was supported by the National Federation of Independent Business. The U.S. House version does not. The two chambers must now hammer out their differences before the bill can be sent to President Bush.

The federal bills put New Mexico lawmakers’ minimum wage bills in limbo.

Secretary of State Discloses Deficits: Federal Audit Under Way

Secretary of State Mary Herrera disclosed to a Senate Rules Committee Wednesday that her office was left $3.5 million in debt from her predecessor Rebecca Vigil-Giron.

Before leaving office, Vigil-Giron had requested $3 million from the Legislative Finance Committee: $2.2 million to cover outstanding debts and $800,000 to meet the federal Help America Vote Act requirements. HAVA funds are grants to the states to help citizens with disabilities vote.

The U.S. Election Assistance Commission’s Inspector General Curtis Crider confirmed his office is conducting an audit of HAVA funds. The audit started Jan. 22 and should be completed in March. Herrera requested the audit, he said.

At issue are whether Vigil-Giron inappropriately used HAVA funds, creating a shortfall, and whether she violated the state’s “50 percent rule” that requires outgoing officials to leave at least half of an agency’s budget in tact for their successors.

Give Peace a Chance

About 50 people and half a dozen organizations participated in Peace and Justice Day in Santa Fe, showing support for five measures:

• A memorial calling for immediate troop withdrawal from Iraq
• A joint resolution calling for the impeachment of President Bush and Vice President Cheney
• A bill to create a New Mexico Office of Peace for conflict resolution
• A memorial to dismantle nuclear weapons at Kirtland Air Force Base
• A Bill requiring the state to provide testing for veterans for depleted uranium, a radioactive metal used in Iraq and Afghanistan.

The measures, some carried by Sen. Gerald Ortiz y Pino, D-Albuquerque, are not symbolic gestures, says Desi Brown, the senator’s assistant.

Lawmakers Call for Housing Investigation

A dozen lawmakers signed a letter to Attorney General Gary King and U.S. Attorney General David Iglesias asking them to investigate the state’s regional housing authorities, especially Region VII in Dona Ana County.

The letter states: We know each of you are aware of the serious allegations of possible wrongdoing, including potential criminal wrongdoing, at the regional housing authorities in the state. We urge you to investigate these allegations fully.

Bills Define Terrorism, Renew Money for Border Sheriffs

Rep. Jeff Steinborn, D-Las Cruces, is introducing legislation that defines terrorism, renews funding for
border sheriffs, sets up an interim committee for border security and other border affairs, and calls on Congress to establish a guest worker program.