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A new article confirms that the Avatar live action movie will begin shooting in Philadelphia sometime soon. Here is the paragraph where Avatar is mentioned:

"The projects include M. Night Shyamalan's The Last Airbender (a trilogy budgeted at more than $250 million) and the eight-figure action flick Transformers 2, as well as smaller-budgeted independent projects and episodic television."

The article discusses how Pennsylvania has become the hot spot for filming new movies (woot PA pride!). And it looks like Paramount is going to put up some big money for the Avatar movies, over $250 million for all 3 (that's not individual, that's for all 3). That's roughly $85 million per film. In comparison, the new Narnia movie "Prince Caspian" was budgeted at $100 million. So while in today's age with $200+ million blockbusters, it is often forgotten a lot of amazing movies have been produced without enormous budgets. The Lord of the Rings trilogy budgeted $280 million as a whole.