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Published on March 11, 2024
Texas Film Industry Set for Major Expansion with New Studio Projects in Austin and San MarcosSource: Hill Country Studios

The film industry in Texas is gearing up for expansion, with two major studio projects aiming to break ground in the Austin area this year. The larger venture, known as 204 Texas, promises a sizeable multiplex of eight new studios spanning almost 600 acres in Bastrop. This project is the brainchild of Alton Butler, founder of the California-based production company Line 204. An economic impact study mentioned by Butler anticipated a $1.3 billion impact over 10 years, but he suggests that figure could be conservative. "We're talking about a $1.3 billion economic impact around this industry and this community, so that's a big thing," Butler said, according to KVUE.

Despite some planning hiccups with city officials, the studio's construction in Bastrop could launch within weeks, with an estimated completion in late 2025 for the first phase – setting the foundation for film production operations in Central Texas. The initial investment for the studios is around $50 million, according to Butler. Meanwhile, southward in San Marcos, Hill Country Studios has solidified its commencement date, with shovels set to hit the ground on February 4. This development will unfold over 200 acres, offering 800,000 square feet of production area and 12 sound stages. The project has been filed with the Texas Department of Licensing and Regulation, with an estimated cost of $20 million for the first segment of construction, which includes two 25,000-square-foot sound stages and a 24,000-square-foot support building, as per KUT.

Page Michel, president and CEO of the San Marcos Area Chamber of Commerce, expressed enthusiasm for the upcoming Hill Country Studios, recognizing the potential for new jobs and increased business for local service establishments. "Having a state-of-the-art movie production studio here will draw a lot of attention to our area," Michel commented. The studio intends to bring an influx of industry-related commerce to the region, thriving along the bustling I-35 corridor.

However, Hill Country Studios confronted resistance initially, with protests from activists and environmentalists in June 2022, concerned about the potential environmental impact on the Edwards Aquifer and local water sources. The developers have since collaborated with local organizations such as the San Marcos River Foundation, learning how to mitigate environmental concerns. Ultimately, the plan for Hill Country Studios encompasses a sweeping production facility with extensive studio space and offices, aiming to cement Texas as a long-term hub for film and TV production, Jacob Cowen, Chief Marketing Officer of Hill Country Studios, told KUT last September.

Austin-Real Estate & Development