Walton County Tourism Director Matt Algarin addressed the Walton County Board of County Commissioners (BCC) regarding The Paper Bear, a feature film shot mostly in Walton County. On October 10, the film’s writer/creators came before the BCC requesting $400,000 so that the film could be finished quickly. That would allow it to debut in time for the various springtime film festivals and theatre venue circuit. The Commission directed the BCC legal team to meet with the creators and their legal advisors to try to negotiate a possible funding agreement.
At Tuesday’s regular meeting (December 5, 2023), Director Algarin asked the BCC to approve the request and sign The Paper Bear Media Partnership Agreement, in exchange for a number of proposed benefits to the county. Accompanying Algarin was Walton Tourism Deputy Director of Marketing Kelli Carter and Catherine Simon from the agency Zender Communications, on hand to answer any questions from the BCC. The Paper Bear creators, Arix Zalace and Sean Couch, were also in attendance.
Interim County Attorney Clay Adkinson reminded the board that the legal department had been asked to look at possible repayment options, royalty percentages and other mechanisms designed to reimburse the county for the outlay.
He stated that, “After much discussion, their request is that this be treated as a sponsorship fee, which the TDC, in turn, is treating as a marketing buy, rather than an acquisition of rights or interest for the purpose of profit sharing or reimbursement.”
Attorney Adkinson explained that apparently, based on the number of other investors they have, no one else is receiving that type of consideration.
Commissioner Brad Drake asked “Why can’t we be in a posture to accept royalties? Why wouldn’t that be in the agreement? What would be the downside?”
“Well, it could be,” said Adkinson, “if they agreed. They don’t agree. That’s the difference. It’s not that we can’t – it’s that they won’t.”
Commissioner Drake replied, “We hold the cards. If we ask for that, then I feel pretty certain that they would oblige – if we want to have some return on the investment. So, I just think that, if we ask for it, then we should expect that.”
Adkinson replied that if the BCC wishes to add that stipulation to the agreement, then Legal will do that and send it to the Paper Bear team as a counter-offer. He clarified that staff does not have the authority to negotiate the endpoint of a contract. Staff must bring it back to the board for a decision or direction.
Commissioner Danny Glidewell turned to Kelli Carter and said, “Y’all are treating this – correct me if I am wrong – as no different than buying an ad in Southern Living magazine.”
Ms. Carter agreed, noting that if the Tourism Department were to spend $400,000 on network television, that would give them an ad or commercial in four markets running for about six weeks. She said the film would have a much longer lifespan than that, so that’s why they favor the outlay.
Carter said that a lot depends on the planned distribution of the film, “As it moves along, we’ll see a lot more ROI (return on investment) once we actually know where it’s going to be distributed.”
Commissioner Glidewell replied, “So the point is, the ROI on an advertising buy - whether it’s a magazine or television - the return on that is the number of people who see it. On social media, it’s the number of clicks or ‘impressions’ and then how many of those people actually come to the destination and visit. That’s the return.”
Carter agreed, saying, “Yes, it would be an opportunity to showcase Walton County to some people who may or may not be aware of Walton County.”
“So, this is not an investment, this is a marketing strategy, correct?” asked Glidewell.
“Yes, that is the way we are looking at it,” replied Carter.
At this point, filmmaker Arix Zalace stepped forward to address some of the concerns expressed. Zalace explained that since their original request in October, their proposal has changed from a request for a donation into a media buy, and that the filmmakers have added specific things to the film that are going to highlight Walton County in a way that would not have been done otherwise.
“In terms of distribution, I was out in California doing meetings with distributors…and so we presented them with certain completed scenes from the film and talked about the potential partnership with Walton County. With all of the distributors I met with, every one of them wanted to sign right then,” said Zalace. He said the distributors see the film as an ‘evergreen’ project, meaning that it is not anchored to any specific time period and less likely to become dated.
Zalace said the distributors told him to be prepared to translate the film dialogue into five different languages for distribution, not just in the U.S., but all over Europe. After that, the film could go on to be included in streaming services domestically.
Zalace also pointed out that some of the largest revenue-generating components related to films is the merchandise that comes with it. The filmmakers have agreed to design and manufacture a plush set of children’s toys and Walton County would have exclusive right to market them and retain all the profits.
Zalace said that the filmmakers have established a non-profit organization, based in Walton County, to serve as a kind of umbrella organization for this and other films. Bound by federal laws and very strict guidelines, he said the new non-profit’s by-laws state that all revenue generated by The Paper Bear film is to be used to make more films and content about the Florida Panhandle and Walton County. Zalace said they are planning to do short, animated films about different areas in Walton County which can be used to promote tourism here.
“Not only is Walton County our home, we’re not going anywhere,” said Zalace. “We have a five-year plan for this and it’s all about turning it around and regenerating revenue. We are trying to get to where, once it is set up, it becomes self-generating and becomes something that is creating more content every year… If the first film does well, it is so much easier to have the trilogy and we all know about trilogies.”
Commissioner Drake asked whether, if the BCC decides to deny the request, the film would still be made. Zalace said it would. He explained that the funding is about timing.
Zalace said they assembled a world-class team of animators from around the globe and if the project stalls due to lack of funding, those team members would move on to other jobs, making it more difficult, time-consuming, and expensive to finish the film later.
Zalace said “Our goal is to hit the film festival circuit next year. Because of all the strikes…we have been talking to people in the industry and one reason they are so excited about it is because there is such a lack of content and, on top of that, ours is such a family film, it is so timeless.”
Commissioner Tony Anderson asked Catherine Simon, from Zender Communications, her opinion of the project from a marketing standpoint.
“I think it is a really interesting opportunity to reach audiences that we haven’t had access to yet. In the discussions that we have had with The Paper Bear project, it has been surrounding how we can make sure, as Arix has mentioned, that Walton County is very prominent in the film,” said Simon. “Because if we are treating this as a media buy, we need to make sure the brand is in the forefront. When people who are watching this film, they’re associating the film with Walton County and so all of their feelings and positive thoughts…are associated with here, which makes them want to travel here. The younger demographics are really culture-seekers so they are looking for something interesting and more cultural about destinations…looking beyond the beach, which is what we have talked about a lot.
Simon said they had certainly looked at it from a financial standpoint and the potential of distribution for this film is vast. “So, we are also looking at connected TV like Hulu and Peacock and things like that. If we’re placing ads there, we reach about 10.5 million impressions with $400,000. So, we want to make sure that this distribution matches what we would be getting from traditional and non-traditional media buys.”
Simon indicated that Walton County is getting more quality advertising with this film than could be produced locally for the same expenditure.
Commissioner Anderson said he felt this is an opportunity to reach a new, different audience. “We are recouping our money from the distribution of this film and the number of people that see it…it’s a marketing tool…this is one of the best tools we have in our toolbox,” he said.
Not everyone spoke in favor of the expenditure. Tim Taylor, a Walton County Tourist Development Council member, said he felt that the funds should be spent elsewhere. “We need to spend money on the things that generated the $50 million dollars (bed-tax collections).” Taylor was also concerned that the Tourism Council had not met since October and had not discussed The Paper Bear Project as a council.
Taylor also suggested that the BCC form a film commission to oversee future filmmaking activities in Walton County.
Additional audience members spoke both for and against the project, though the majority of speakers did express approval of the project.
After public discussion, Commissioner Anderson made a motion to approve the expenditure, seconded by Commissioner McCormick and the motion passed unanimously.
For more information, contact the Public Information Office at (850) 892-8155 or pio@co.walton.fl.us.
At Tuesday’s regular meeting (December 5, 2023), Director Algarin asked the BCC to approve the request and sign The Paper Bear Media Partnership Agreement, in exchange for a number of proposed benefits to the county. Accompanying Algarin was Walton Tourism Deputy Director of Marketing Kelli Carter and Catherine Simon from the agency Zender Communications, on hand to answer any questions from the BCC. The Paper Bear creators, Arix Zalace and Sean Couch, were also in attendance.
Interim County Attorney Clay Adkinson reminded the board that the legal department had been asked to look at possible repayment options, royalty percentages and other mechanisms designed to reimburse the county for the outlay.
He stated that, “After much discussion, their request is that this be treated as a sponsorship fee, which the TDC, in turn, is treating as a marketing buy, rather than an acquisition of rights or interest for the purpose of profit sharing or reimbursement.”
Attorney Adkinson explained that apparently, based on the number of other investors they have, no one else is receiving that type of consideration.
Commissioner Brad Drake asked “Why can’t we be in a posture to accept royalties? Why wouldn’t that be in the agreement? What would be the downside?”
“Well, it could be,” said Adkinson, “if they agreed. They don’t agree. That’s the difference. It’s not that we can’t – it’s that they won’t.”
Commissioner Drake replied, “We hold the cards. If we ask for that, then I feel pretty certain that they would oblige – if we want to have some return on the investment. So, I just think that, if we ask for it, then we should expect that.”
Adkinson replied that if the BCC wishes to add that stipulation to the agreement, then Legal will do that and send it to the Paper Bear team as a counter-offer. He clarified that staff does not have the authority to negotiate the endpoint of a contract. Staff must bring it back to the board for a decision or direction.
Commissioner Danny Glidewell turned to Kelli Carter and said, “Y’all are treating this – correct me if I am wrong – as no different than buying an ad in Southern Living magazine.”
Ms. Carter agreed, noting that if the Tourism Department were to spend $400,000 on network television, that would give them an ad or commercial in four markets running for about six weeks. She said the film would have a much longer lifespan than that, so that’s why they favor the outlay.
Carter said that a lot depends on the planned distribution of the film, “As it moves along, we’ll see a lot more ROI (return on investment) once we actually know where it’s going to be distributed.”
Commissioner Glidewell replied, “So the point is, the ROI on an advertising buy - whether it’s a magazine or television - the return on that is the number of people who see it. On social media, it’s the number of clicks or ‘impressions’ and then how many of those people actually come to the destination and visit. That’s the return.”
Carter agreed, saying, “Yes, it would be an opportunity to showcase Walton County to some people who may or may not be aware of Walton County.”
“So, this is not an investment, this is a marketing strategy, correct?” asked Glidewell.
“Yes, that is the way we are looking at it,” replied Carter.
At this point, filmmaker Arix Zalace stepped forward to address some of the concerns expressed. Zalace explained that since their original request in October, their proposal has changed from a request for a donation into a media buy, and that the filmmakers have added specific things to the film that are going to highlight Walton County in a way that would not have been done otherwise.
“In terms of distribution, I was out in California doing meetings with distributors…and so we presented them with certain completed scenes from the film and talked about the potential partnership with Walton County. With all of the distributors I met with, every one of them wanted to sign right then,” said Zalace. He said the distributors see the film as an ‘evergreen’ project, meaning that it is not anchored to any specific time period and less likely to become dated.
Zalace said the distributors told him to be prepared to translate the film dialogue into five different languages for distribution, not just in the U.S., but all over Europe. After that, the film could go on to be included in streaming services domestically.
Zalace also pointed out that some of the largest revenue-generating components related to films is the merchandise that comes with it. The filmmakers have agreed to design and manufacture a plush set of children’s toys and Walton County would have exclusive right to market them and retain all the profits.
Zalace said that the filmmakers have established a non-profit organization, based in Walton County, to serve as a kind of umbrella organization for this and other films. Bound by federal laws and very strict guidelines, he said the new non-profit’s by-laws state that all revenue generated by The Paper Bear film is to be used to make more films and content about the Florida Panhandle and Walton County. Zalace said they are planning to do short, animated films about different areas in Walton County which can be used to promote tourism here.
“Not only is Walton County our home, we’re not going anywhere,” said Zalace. “We have a five-year plan for this and it’s all about turning it around and regenerating revenue. We are trying to get to where, once it is set up, it becomes self-generating and becomes something that is creating more content every year… If the first film does well, it is so much easier to have the trilogy and we all know about trilogies.”
Commissioner Drake asked whether, if the BCC decides to deny the request, the film would still be made. Zalace said it would. He explained that the funding is about timing.
Zalace said they assembled a world-class team of animators from around the globe and if the project stalls due to lack of funding, those team members would move on to other jobs, making it more difficult, time-consuming, and expensive to finish the film later.
Zalace said “Our goal is to hit the film festival circuit next year. Because of all the strikes…we have been talking to people in the industry and one reason they are so excited about it is because there is such a lack of content and, on top of that, ours is such a family film, it is so timeless.”
Commissioner Tony Anderson asked Catherine Simon, from Zender Communications, her opinion of the project from a marketing standpoint.
“I think it is a really interesting opportunity to reach audiences that we haven’t had access to yet. In the discussions that we have had with The Paper Bear project, it has been surrounding how we can make sure, as Arix has mentioned, that Walton County is very prominent in the film,” said Simon. “Because if we are treating this as a media buy, we need to make sure the brand is in the forefront. When people who are watching this film, they’re associating the film with Walton County and so all of their feelings and positive thoughts…are associated with here, which makes them want to travel here. The younger demographics are really culture-seekers so they are looking for something interesting and more cultural about destinations…looking beyond the beach, which is what we have talked about a lot.
Simon said they had certainly looked at it from a financial standpoint and the potential of distribution for this film is vast. “So, we are also looking at connected TV like Hulu and Peacock and things like that. If we’re placing ads there, we reach about 10.5 million impressions with $400,000. So, we want to make sure that this distribution matches what we would be getting from traditional and non-traditional media buys.”
Simon indicated that Walton County is getting more quality advertising with this film than could be produced locally for the same expenditure.
Commissioner Anderson said he felt this is an opportunity to reach a new, different audience. “We are recouping our money from the distribution of this film and the number of people that see it…it’s a marketing tool…this is one of the best tools we have in our toolbox,” he said.
Not everyone spoke in favor of the expenditure. Tim Taylor, a Walton County Tourist Development Council member, said he felt that the funds should be spent elsewhere. “We need to spend money on the things that generated the $50 million dollars (bed-tax collections).” Taylor was also concerned that the Tourism Council had not met since October and had not discussed The Paper Bear Project as a council.
Taylor also suggested that the BCC form a film commission to oversee future filmmaking activities in Walton County.
Additional audience members spoke both for and against the project, though the majority of speakers did express approval of the project.
After public discussion, Commissioner Anderson made a motion to approve the expenditure, seconded by Commissioner McCormick and the motion passed unanimously.
For more information, contact the Public Information Office at (850) 892-8155 or pio@co.walton.fl.us.
