A $267 million studio for film and television production is on track to break ground in San Marcos later this year. Hill Country Studios, which received final city approval last month, is expected to break ground by the end of the year, with film production beginning there as early as 2024, the Austin American-Statesman reported.
Plans are in the works for 800,000 square feet of studio, 12 purpose-built sound stages, four workshops, and over 200,000 square feet of production office space.
Hill Country Group first proposed the project — which will be a state-of-the-art TV, film and streaming studio — last year. At the time, the company said the project would be the largest of its kind in the state, and it has garnered city and county incentive deals that could be worth more than $6 million. The studios will focus on digital production Last year, the company said virtual production design and management would be led by film technology company Vision.
In August, the San Marcos Council annexed the land for the studios, which is located near the Edwards Aquifer Recharge Zone, and rezoned the property. The project will be built on the existing La Cima development near West Centerpoint Road, West Wonder World Drive and RM 12.
The approvals come after the San Marcos City Council last year authorized a Chapter 380 tax abatement agreement following a lengthy discussion that raised environmental concerns, and that included talk of the economic benefits and potential partnerships with Texas State University and the San Marcos school district.
Under the agreement, the studio will receive an estimated $4.6 million in property tax rebates over five years, with abatements decreasing year by year starting with a 90% rebate once the studio is built and ending with a 20% rebate in the fifth year. The deal would go into effect in 2025, but before that the city would collect $2.1 million property taxes and estimated it would get $11.4 million in property tax revenue for the project over 10 years.
Last year, Hays County commissioners also approved a separate incentive agreement for the project that granted property tax abatements worth about $1.6 million over five years, starting in 2025. Both agreements require the company to meet certain performance obligations, including purchasing the land and constructing the studio, as well as obligations related to jobs and business operations.
Plans on the company’s website show the project would be built on 75 acres of a 209-acre property, and include 820,000 square feet of production offices, commercial space, four workshops, back lots and 12 sound stages.
The website also said the property will have a food lot with local food trucks and vendors. The website also mentions a vendor village with onsite services to aid production.
The website shows Hill Country Studios plans to build the project in two stages, starting with seven studios and two workshops. The second phase would add five studios, two workshops and an additional unlabeled building. Original plans filed with the city last year called for an earlier groundbreaking in April 2023 and three phases.
The website also mentions a production office with more than 200,000 square feet, flexible configurations for small and large productions, two concrete pads that are 2 acres, and a backlot for outdoor filming space in a variety of environments.
Documents filed with the city last year show the studio expects it would employ 22 people full time with an average salary of $100,000, a number that could grow to 44 full-time employees once fully built. The filings also estimated the studio could employ up to 1,400 contract workers, averaging about 1,200 workers on production projects, with an average salary around $80,000.
Similarly, Cowan estimated projects filming at the studio could provide about 1,200 contract employee jobs once the project is in full operation.
