las Vegas Movie Studio Proposal Rejected Over Subsidy
LAS VEGAS – May 17, 2024 – The aspiring Las Vegas movie studio proposal, backed by industry giants Sony Pictures adn Warner Bros., was rejected by the Nevada Legislature. The decision prevents the Summerlin Studios project from receiving a requested $95 million annual subsidy. As experts, we analyze the implications, and evaluate the long-term affects of the legislature’s denial.
Las Vegas Movie Studio dreams Derailed: $95M Subsidy Rejected
A major proposal to establish a movie studio in Las Vegas has been rejected by the Nevada Legislature, as lawmakers declined to approve a $95 million annual subsidy. The ambitious project, known as summerlin Studios, was a collaborative effort backed by industry giants Sony Pictures and Warner Bros.
The Proposal: Summerlin Studios
- Size: The proposed summerlin Studios would have spanned 31 acres.
- Facilities: The facility was planned to include 10 state-of-the-art soundstages.
- Backers: Sony Pictures and Warner Bros. initially supported the project, with Warner Bros. switching allegiance to Summerlin in February.
- Bill: Assemblywoman Sandra Jauregui introduced AB 238, a bill that sought to create a $95 million annual tax credit for film and TV productions at the studio, plus an additional $25 million for other productions.
Did You No?
Nevada’s film industry has seen fluctuating levels of activity over the years. Tax incentives and infrastructure investments are often key factors in attracting major film productions to the state.
Legislative Roadblocks
Despite passing the state assembly last week with a narrow 22-20 vote, AB 238 failed to gain traction in the Senate. The bill needed Senate approval by midnight on Monday, but it was not considered.
Sen. Roberta Lange,who championed a competing studio project in partnership with the University of Nevada,Las Vegas (UNLV),explained the decision:
People just couldn’t get there. When we’re cutting other important things like housing, education and health care, it’s really hard to get to a place where people feel comfortable putting a lot of money into something new.
Sen.Roberta Lange
rival Projects and shifting Alliances
The path to establishing a major studio in las Vegas was complicated by competing proposals and shifting alliances within the film industry.
- Initial Rivalry: Last fall, Sony and Warner Bros. backed separate projects. Sony supported summerlin, developed by Howard Hughes Holdings, while Warner Bros. initially favored a UNLV-based project.
- Warner Bros. Switch: In February, Warner Bros. shifted its support to the Summerlin studio.
- UNLV Project: Sen. Lange continued to support the UNLV project, partnering with Manhattan Beach Studios and Birtcher Development. Her bill, SB 220, did not advance to a floor vote.
Pro Tip
Understanding the political landscape and budgetary priorities is crucial for securing legislative support for large-scale projects. Competing proposals can sometimes dilute support and hinder progress.
Future Prospects
With the Nevada Legislature meeting biennially, the next chance to advance the project will not arise until 2027. In the session’s closing hours, Sen. Lange proposed an amendment calling for an economic study of the issue,but it did not receive a vote.
Lange suggested exploring alternative approaches:
A film tax credit may not be what people want but there may be something else. We have to do a study and look at what we can do that fits our state and move forward.
Sen. Roberta Lange
The competition between the two studio projects likely contributed to the failure, as stakeholders recognized that only one, if any, would receive approval.
reactions and Implications
Gov. Joe Lombardo remained non-committal on the issue, focusing rather on his own legislative priorities. A Howard Hughes spokesperson expressed disappointment with the outcome:
Our project is a tremendous opportunity in the best interest of all Nevadans, creating thousands of jobs at a time when Nevada needs them most.
Howard Hughes Spokesperson
