Latest news with #SB220
Yahoo
03-06-2025
- Business
- Yahoo
Las Vegas Studio Proposal Backed by Sony and Warner Bros. Dies in Nevada Legislature
A proposal to build a movie studio in Las Vegas died in the Nevada Legislature on Monday night, as lawmakers refused to grant a $95 million annual subsidy. Sony Pictures and Warner Bros. had teamed up to support Summerlin Studios, a 31-acre facility that would have 10 soundstages. A bill to subsidize the project, AB 238, passed the state Assembly last week but died in the Senate on Monday night. More from Variety Sony's Buy One, Get One TV Deals: Here's How to Get a Free Sony 4K Ultra HD TV Sony Just Dropped the New WH-1000XM6 Noise-Canceling Headphones: Here's How to Buy a Pair Online Sony Chief Hiroki Totoki Outlines Entertainment-First Strategy, Addresses Trump Tariff Concerns: 'We Are Paying Close Attention' 'People just couldn't get there,' said Sen. Roberta Lange, who backed a rival studio project in partnership with UNLV. '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.' A similar effort failed in 2023. The Nevada Legislature meets every other year, so the next opportunity to push the project forward won't come until 2027. Sony and Warner Bros. were backing rival projects last fall. Sony supported the Summerlin proposal, which would be built by Howard Hughes Holdings. Warner Bros. was aligned with the UNLV proposal, which was slated for a research campus in the southwest area of Las Vegas. But in February, Warner Bros. switched sides and threw its support behind the Summerlin studio. AB 238, by Assemblywoman Sandra Jauregui, would have created a $95 million annual tax credit, which would go to film and TV productions shooting at that facility. An additional $25 million would go to support other productions unconnected with the facility. Lange continued to back the UNLV project, which partnered with Manhattan Beach Studios and Birtcher Development. Her bill, SB 220, did not advance to a floor vote. Jauregui's bill passed the Assembly on a narrow 22-20 vote on Friday. It needed to win Senate passage by midnight on Monday, but was not taken up. In the closing hours of the session, Lange offered an amendment calling for an economic study of the issue. That, too, did not get a vote. 'A film tax credit may not be what people want in the end, but there may be something else,' Lange told Variety. 'We have to do a study and look at what we can do that fits our state and move forward.' The rivalry between the two studio projects did not help the cause. From the outset, it was clear to stakeholders that only one — at most — would win approval. Lange said she spoke to Gov. Joe Lombardo, a Republican, on Monday night, and he was non-committal on the issue, and more focused on winning passage for his own priorities. Best of Variety What's Coming to Netflix in June 2025 New Movies Out Now in Theaters: What to See This Week 'Harry Potter' TV Show Cast Guide: Who's Who in Hogwarts?
Yahoo
09-05-2025
- Business
- Yahoo
2 Las Vegas movie studio projects still alive; developers explain advantages of each
LAS VEGAS (KLAS) — Dueling proposals to build Las Vegas movie studios are still alive with less than a month until the Nevada Legislature is scheduled to end its 2025 session. Both pieces of legislation — Assembly Bill 238 (AB238) and Senate Bill 220 (SB220) — are built around tax credits that could lure moviemakers, TV production companies and others, potentially laying the groundwork for a major industry that could diversify the Las Vegas economy. A Nevada Senate finance committee hearing scheduled for Friday, May 9, provides the only measure of which 'film bill' is ahead in the race: AB238, the project featuring major motion picture players Sony and Warner Bros. Discovery, is a step ahead in the legislative process. SB220 needs a similar hearing in the Nevada Assembly to keep pace. 8 News Now spoke to developers behind both projects as decisions near for lawmakers. The videos and details below summarize the strengths of each proposal: Two years ago, stars including Mark Wahlberg and Jeremy Renner were pitching the only film bill on the table. But the legislation got a late start and was ultimately shelved so the Legislature could focus on a stadium deal for the Athletics, who have left Oakland and will start playing in Las Vegas in 2028. Now, studio executives are doing the sales job themselves. Both Sony and Warner Bros sent top executives to make their case this year. It's business, and the studios have aligned with the Howard Hughes Corp. behind AB238, sponsored by Democratic Assembly Majority Leader Sandra Jauregui and Democratic Assem. Daniele Monroe-Moreno. David O'Reilly, CEO of Howard Hughes Corp., is right there with the studio execs, telling lawmakers that it's about the jobs. According to the proposal, the project would bring 19,000 construction jobs to build the studios and 17,680 permanent jobs. Good jobs, with an average salary of over $110,000. 'The unfortunate news today is that Nevada leads the nation in unemployment, and we're facing rather uncertain economic times in terms of potential recessions due to tariffs and other economic uncertainties,' O'Reilly said. 'Right now, we have the opportunity to sign a bill, the studio film tax credit bill, that would put $1.8 billion of private money in new construction and jobs tomorrow if this is passed.' The tax credits don't kick in until production begins in the studios. 'Over a billion dollars will be invested in the ground. Those jobs are there. We're growing the economy. We're putting our money first, investing in the state first, and only after that is any potential credit earned,' O'Reilly said. The site would be in Summerlin South, near Flamingo Road and Town Center Drive. Residents have expressed concerns about traffic in the area. The land is owned by Howard Hughes Corp. 'It would be a shame if we don't take the opportunity to jump on it right now,' he said. AB238 requires the studios to commit $400 million to build, plus the completion of a vocational training studio that will cost more than $8 million, and a $6 million contribution to the Clark County Redevelopment Agency. For both of the film bills, tax credits in the future provide the incentive to build and set up shop in Las Vegas. The savings come when production costs are lower because of the tax credits. And for both bills, the state's not getting anything for free. Taxes that would pay for infrastructure including roads, schools, emergency services and other costs would simply not be coming in. Opponents point out that those services would stil have to be provided, but the funding would be missing. The tax credits add up to $1.6 billion over 15 years. 'If you're just focused on the math of the credit over the term without focus on the revenue that comes back into the state, I think you're only looking at half the equation,' O'Reilly said. 'We have to look at the picture in totality. We have to look at the diversification of the economy that will occur as a result of this, and how it will insulate our economy against future downturns.' The current budget crunch only adds urgency to the need to diversify the economy, O'Reilly said. 'If we don't figure out a way to get money back into the economy today, we're only backing ourselves further into the corner,' he said. The second proposal, sponsored by Democratic State Sen. Roberta Lange, differs from the Summerlin project in several important ways. It is much more aligned with education with vocational partnerships including UNLV, CSN, Nevada State University and the Clark County School District. Those partnerships were developed over the past two years. Birtcher Nevada Development CEO Brandon Birtcher said 179 unique jobs have been identified in the Nevada Studios project, and training for each of those jobs would be available through the educational partnerships. SB220 would include $186 million for participating schools. 'This bill is much more than a film bill,' he told 8 News Now. 'It's an economic diversification act.' The project would be at the UNLV Harry Reid Research and Technology Park, near the 215 Beltway and Durango Drive in the southwest Las Vegas valley. Birtcher also points out that they will build the studios on public land. Lease payments will feed back into the educational system, generating $365 million over the life of the agreement, another benefit for the state. The buildings will be donated back to the UNLV Research Foundation. And perhaps the biggest selling point: Return on investment calculated at 102% that goes back to the Nevada State general fund, according to Birtcher. Film tax credits from SB220 would total $1.65 billion. Another goal of the Nevada Studios project involves a 50,000-square-foot building that will house the Nevada Media & Technology lab, part of the Creative Technology Initiative (CTI). SB220 is intended to support innovation in aerospace, health care technologies, video game development, artificial intelligence, virtual and extended reality, drones, and related technologies. More than $12 million in the bill will be used to develop relationships in these tech areas. 'Video game publishing is larger than television, music and movie production combined,' Birtcher said. He described MBS Group, the partner that will operate the studio, as the 'air traffic controller' for the film industry. They are involved in productions all over the world and are uniquely positioned to bring business to Las Vegas. MBS Group's involvement was elevated when Warner Bros. left to support AB238. 'We have the world's largest and most pre-eminent servicer of the industry managing this studio complex, assuring us that we'll be producing constantly in this studio complex at UNLV,' he said. There's little chance that both proposals will be approved. 'Our goal is to see if we can do a joint bill. We've always been about that,' Birtcher said. 'But in the unlikely situation that it doesn't come together and the Legislature has to pick a winner, I have no doubt which of the two bills, SB220 is a profoundly better economic situation for the state, returning more than $1 for $1 given. It has the best education-centric-ready platform from Day 1, and it returns a billion dollars of private sector money back to education through SB220,' he said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
