Los Angeles: In his keynote address at the American Film Market, Los Angeles Mayor Richard Riordan promised to stem the tide of film productions heading to Canada.

Playing to a largely local l.a. crowd, the mayor cited high union rates and too much red tape in obtaining permits as reasons why Vancouver has become a rival production city to l.a.: ‘Vancouver has a lot of the expertise that we [l.a.] have and we allowed them to build that up over the years.’

The mayor promised a tax reform bill that would simplify and reduce taxes on films budgeted under us$11 million. The bill will be voted on at the end of this month. The crowd applauded the mayor’s initiative, although comments from the audience suggested that it was perhaps too little, too late.

Steven Paul, president of Crystal Sky, expressed his concern over films leaving town, while admitting that he also takes productions to Canada.

Although early predictions for this year’s afm were dire, attendance remains close to last year’s figures. Registration confirms 277 international sales companies, down less than 1% from last year, the afm is quick to point out, with 1,500 buyers expected to pass through the hallways.

Behavior Worldwide has done brisk business with its family adventure Grizzly Falls, produced by Toronto-based Peter Simpson. With most European territories, Australia, Israel and the Middle East already sold, a u.s. domestic deal is expected shortly.

Queried about the relevance of the afm in today’s indie climate, Rob Aft, senior vp worldwide distribution of Behavior, rallied to its defense.

‘It’s a relatively inexpensive way to get buyers together,’ particularly those buyers from territories such as Latin America, South East Asia and Eastern Europe who cannot afford larger markets like Cannes.

Lion’s Gate International has been busy selling its adaptation of Brett-Easton Ellis’ American Psycho, now in production in Toronto. German rights went to Telemunchen/Concorde, Amuse took Japanese, Metropolitan took French and Entertainment Film Distribution took u.k. rights. Other territories sold include Italy, Spain, Latin America, Scandinavia, Benelux, Israel, Greece and the Middle East. Lion’s Gate holds North American rights.

Continuing the buzz, Lion’s Gate recently announced a three-picture deal with Nicolas Cage and Jeff Levine’s Saturn Films. The rights to the first title, Shadow of the Vampire, left the shelves quickly, with France, Spain, Scandinavia, Latin America, Benelux and the Middle East amongst the territories snapped up.

The word at the market was that the Germans were the big spenders. Franchise Pictures had one of the glitzier sales with its three titles -Battlefield Earth starring John Travolta, The Whole Nine Yards starring Bruce Willis, and Hospitality Suite starring Kevin Spacey – selling rights to several European territories to the German-based Intertainment.

Alliance/Le Monde Entertainment has had success with its package Cara Cara, starring Natasha Henstridge, selling to several territories including the u.k., Germany, Italy and Latin America.

Alliance Atlantis Pictures International’s smaller niche film Better Than Chocolate has received interest from a number of u.s. buyers. No sales confirmed at press time.

Gearing up for Cannes, aac will launch A Taste of Sunshine, a German/Hungarian/Canadian/u.k./Austrian coproduction starring Ralph Fiennes; Romeo Brass, a Canadian/u.k. coproduction; and the Camelia Frieberg-produced Five Senses as three of six api titles represented in what Theroux predicts will be aac’s ‘largest presence at Cannes ever.’