Published: January 9, 2025, 06:06h.

Last updated: January 9, 2025, 06:13h.

One of the two major Hollywood studios proposed for Las Vegas is facing a setback as the construction plans have been put on hold.

Birtcher Development from Newport Beach, Calif. is no longer the designated builder of Warner Bros. Studios Nevada, a 34-acre film complex that was planned to be constructed at the Harry Reid Research and Technology Park at UNLV. This change was initially reported by The Nevada Independent.

Both Warner Bros. and its competitor Sony Pictures Entertainment had proposals to compete for $190 million in annual transferable Nevada film tax credits, as part of a bill aiming to expand Nevada’s current $10 million in tax credits.

The bill, SB 496, introduced by Nevada Senator Roberta Lange (D-LV) in the 2023 legislative session, did not proceed to a floor vote as the legislature did not convene in 2024. However, Lange has plans to reintroduce the bill during the upcoming state legislative session starting on Feb. 3.

Despite the potential $2 billion cost to the state, advocates of the bill argue that the film credits could generate around $55 billion in revenue over the next two decades.

Tug of Warner

Warner Bros. still aims to proceed with its studio construction if the state upholds the promised tax credits, and is actively searching for a new developer for the project. The initial proposal from Warner Bros. involved an $8.5 billion commitment over 17 years.

“We are dedicated to establishing Warner Bros. Studios Nevada and are enthusiastic about the opportunity to create job opportunities, economic development, and educational prospects in the state,” stated a Warner Bros. Discovery spokesperson on Thursday.

However, the originally pledged tax credits may no longer be guaranteed. While both Lange and Assemblywoman Sandra Jauregui (D-LV) are expected to introduce revised versions of SB 496 this year, the new proposals are likely to offer reduced state tax credits.

It remains unclear how committed each studio is to transforming Las Vegas into what Mark Wahlberg optimistically referred to in 2022 as “Hollywood 2.0.”

According to Birtcher, the decision to terminate the deal was not made by their company.

“We regret Warner Bros has chosen not to move forward with us,” mentioned Brooke Birtcher Gustafson, president of Birtcher Development, in a statement. She added that Birtcher intends to proceed with its secondary partner, Manhattan Beach Studios, a renowned independent studio recognized for producing the 2022 film “Avatar: the Way of Water.”

One Major Still in Play

Sony remains as the sole major Hollywood studio with a concrete plan in place.

It has received approval from the Clark County Zoning Commission for Howard Hughes Corp. to construct the $1.8 billion Summerlin Production Studios on the northeast corner of Flamingo Road and Town Center Drive in Summerlin

Its development plans are contingent on the successful passing of the tax credit expansion as initially proposed.