DALLAS — Editor's note: This article was originally published in the Dallas Business Journal here.
Prominent developer Matthews Southwest Inc. and a private equity firm aim to leverage state incentives for renovations of a southern Dallas television studio.
Located at 2901 Botham Jean Blvd., South Side Studios is a two-building production facility that has been used to film TV series including “Queen of the South,” “The Chosen,” and “Dallas.”
At around 75,000 square feet, the Dallas Observer tabbed it as the biggest and "most historic" sound stage in the city but one in "dire need of an update." The Observer reported about the renovations gearing up to start last August.
Lewisville-based Matthews Holdings Southwest Inc. and Talon Entertainment Finance formed South Side Studios LLC in 2023 to pursue the renovations.
The partners want to take advantage of Texas' Media Production Development Zone Program, created by the state legislature in 2009 to encourage development of production sites and by making them eligible for a two-year sales and use tax exemption for construction, expansion or renovations.
The project is scheduled to appear before Dallas City Council on May 22, and council members would need to designate a media production development zone and identify the site as a qualified media production location to make it eligible for tax breaks.
The project is expected create three separate sound stages in the west building and lead to new roofs and additional improvements to the second building.
Total costs are expected to amount to roughly $8.7 million, with $6.25 million for renovations and $1.53 million for equipment, furniture and fixtures purchases. The economic impact of the project regionally is estimated to be about $13.6 million, according to city documents, and the expanded facility is expected to generate at least 86 jobs.
Dallas City Council Member Adam Bazaldua said in a May 6 meeting of council's Economic Development Committee he would like the city to consider designating other areas within the zone as well, such as the fairgrounds in Fair Park.
“I would love for us to not put all of our eggs in one basket, if you will,” Bazaldua said. “We have Hensley Field that is being environmentally remediated. We have some years until we see that move, but I believe that we have potential within this city-wide zone to look on a larger scale."
He added he was "fully supportive" of the designation for South Side Studios but "would just like to see if there could be any conversation to leveraging potential tax credit that could be utilized on the fairgrounds and utilize the facility that we already have and the investment we've made towards the production center that we have there."
Similar zones have been created in Texas cities including Austin and Fort Worth.
