CHARLOTTE — Season 3 of The Hunting Wives will not be shot in North Carolina after the General Assembly made changes to how film incentives are distributed.
The announcement is a stunning blow for a state that has been hot for movie and television productions the last few years.
“We have had many conversations with Lionsgate about that production, trying to find a way to make an award to it so they could film this next season,” Commerce Secretary Lee Lilley said. “Unfortunately, given our situation, we are not able to do that at this time, which is a huge disappointment to us.”
[ Popular Netflix show casting extras in Charlotte ]
Channel 9 obtained an email sent by a producer for the hit Netflix show to production staff on Sunday. It said North Carolina no longer has money to fund their incentive program. The Hunting Wives will begin the process of moving to Georgia as a result.
“The program plays a key role in how we budget for each season and without the funds, the show will not be able to continue shooting in North Carolina,” the email from Joan Cunningham said. “We will miss our North Carolina family and hope our paths cross again very soon.”
Cunningham referred Channel 9 to Lionsgate. A spokesperson for Lionsgate declined to comment.
This all comes down to how North Carolina distributes the film grants.
Since 2019, the Department of Commerce has been running them as a cash flow program, meaning the state could provide funding based on future appropriations. But in the most recent budget process, the General Assembly changed this; so now, Commerce can only run the program on a strict annual appropriations basis. Simply put, Commerce can’t hand out cash based on money it will get in the future. It can only hand out what it has.
“We are working with the General Assembly to try and amend this,” Secretary Lilley said. “We want to get this film program back where we can make awards, keep film production going in Charlotte, Wilmington and other locations.”
The move not only threatens The Hunting Wives but also other new productions in North Carolina. Secretary Lilley could not provide an estimate for when new productions will be able to receive incentives. All productions that have been promised grant funding up to this point will still receive them.
“We’ve made a lot of commitments and we honor our commitments,” he said. “Those are contractual and we’re going to honor those and we have the funds to do that. It would probably set us back a little while.”
A spokesperson for House Speaker Destin Hall said the budget process clarified the Department of Commerce can’t overspend when it comes to film grants. The budget technical corrections bill provided an additional $15 million to cover an existing shortfall.
Senator Michael Lee of Wilmington told Wilmington Biz the changes were made because Commerce was operating in a way that was inconsistent with state law. Commerce has said it was operating in accordance with instructions provided by legislative staff.
”What changed is that somebody finally reminded Commerce that it has been operating in a way that is inconsistent with state law and how the program was developed. Since 2019, Commerce has run the Film Grant like a cash flow program, obligating money ahead of the appropriations to cover it. Commerce administers two programs with that authority, JDIG and One North Carolina, and state law gives it the authority to do that. The Film Grant statute never has," Senator Lee told the publication.
Lee told Wilmington Biz, “Repeating the myth that North Carolina is closed until 2029 is doing Georgia’s marketing for free.”
Lee did not respond to Channel 9’s email about the departure of The Hunting Wives.
The Hunting Wives received nearly $12 million for season 1. They have been awarded up to $15 million for season 2, but that money hasn’t been disbursed yet.
Season 2 of The Hunting Wives debuts on Netflix on November 26. The Hunting Wives star Dermot Mulroney has said preparation is underway for season 3.