LAS VEGAS (KTNV) — Confusion over what appeared to be competing film studio projects in the Las Vegas Valley was partly put to rest with a joint announcement from Sony Pictures Entertainment and Warner Bros. Discovery on Wednesday.
Warner Bros. is now joining Sony's proposal to construct a studio campus in Summerlin, in partnership with developer Howard Hughes. That's according to a press release shared with Channel 13.
The proposal would involve the construction of "a 31-acre world-class production facility anchoring a planned 100-acre mixed-use development," the companies stated on Wednesday, adding a notable caveat: "The implementation of the companies’ plans is dependent on the passage and approval of Assembly Bill 238."
Assembly Bill 238 is sponsored by Assembly Majority Leader Sandra Jauregui (D-Clark County), wrote on Wednesday that, "The investments Warner Bros. Discovery, Sony Pictures Entertainment and Howard Hughes expect to make, in terms of infrastructure, education and workforce development, could create nearly 18,000 jobs and produce a whole new industry in Nevada."
The companies will be required to complete the project by the time tax credits are earned, plus invest at least $400 million.
How did we get here?
You probably remember when the Summerlin Studios project was announced in 2023 — backed by Mark Wahlberg — but didn't go anywhere at the time. The 2023 Nevada Legislative Session ended without the passage of Sen. Roberta Lange's bill that would have granted tax breaks for the project.
In the meantime, Warner Bros. announced its own studio venture in partnership with UNLV and Birtcher Development — but that fell apart, according to multiple reports, when Birtcher pulled out of the project.
As Steve Sebelius reported last week, there are two competing film bills in Carson City. Both would offer about $1.5 billion in tax credits over a 15-year period to lure film studios and independent filmmakers to Las Vegas. Both would also put an emphasis on hiring Nevadans on both sides of the camera.
WATCH: Steve Sebelius explains each film bill and what it would do
There was no mention of Lange's legislation in the press release announcing Sony and Warner Bros. partnership. In a previous interview with Channel 13, Lange said her bill — Senate Bill 220 — counted a new partnership with Manhattan Beach Studios, plus partnerships with UNLV, the College of Southern Nevada and Nevada State University.
What's next?
Proponents of the project argue this would mark a big step toward the lofty goal of diversifying Nevada's economy beyond hospitality and tourism, but those seeking a tax break for this endeavor will have to convince Gov. Joe Lombardo, who's already expressed his skepticism.
As Channel 13 previously reported, his proposed budget did not include any money for tax credits.
"I just don't see that being good policy, good investments for the constituents and the State of Nevada," Lombardo told Steve Sebelius in an exclusive interview earlier this month. "And you also have to be really careful in trying to convince the public it's a good way to do business when they see that there's such massive companies and there's a need in there."
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Jauregui told Channel 13 she plans to argue the investment will be a good return on state money — an idea Assembly Speaker Pro Tempore Daniele Monroe-Moreno echoed in her statement about the proposal.
"At a time when Nevada's unemployment rate remains unacceptably high, and as we seek to diversify our economy so Nevadans can get back to work, we have an incredible opportunity to take a step forward and deliver on our commitment to build an economy that works for Nevada families," Monroe-Moreno stated.
Bill-backers say the measure will now be amended to reflect the new partnership. A.B. 238 is scheduled for a hearing on Thursday, Feb. 27 in the Assembly Revenue Committee.
We'll keep following developments and bring you the latest we find out. If you have questions about how any of this would work — or any other questions about Nevada politics — submit them to Steve Sebelius on ktnv.com/asksteve.
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