The company is seeking tax breaks through state programs.
Dallas — Editor’s note: This article was originally published in Featured in the Dallas Business Journal.
Well-known real estate developer Matthews Southwest Cos. and a private equity firm are looking to take advantage of state incentives to renovate a television studio south of Dallas.
Located at 2901 Botham Jean Blvd., South Side Studios is a two-building production facility that has been used to film TV series such as “Queen of the South,” “The Chosen” and “Dallas.”
The Dallas Observer described the 75,000-square-foot studio as the city’s largest and “oldest” soundstage, but also said it was “in dire need of renovation.” The Observer reported on the planned renovations, which were due to begin last August.
Louisville-based Matthews Holdings Southwest Inc. and Talon Entertainment Finance Inc. formed Southside Studios LLC in 2023 to move forward with the renovation.
The partners hope to take advantage of the Texas Media Production Development Zone Program, which the Texas Legislature created in 2009 to encourage the development of production hubs and qualify them for a two-year sales and use tax exemption on construction, expansions and renovations.
The project is set to go before the Dallas City Council on May 22, where council members will need to designate a Media Production Development District and certify the site as a media production location eligible for tax abatements.
The project will create three separate sound stages in the west wing and bring a new roof and additional improvements to the second building.
The total cost is expected to be approximately $8.7 million, including $6.25 million for renovations and $1.53 million for purchasing equipment, furniture and supplies. The project’s economic impact to the area is estimated at about $13.6 million, and the expanded facility is expected to create at least 86 jobs, according to city documents.
Dallas City Councilman Adam Bazaldua said at the May 6 meeting of the City Council Economic Development Committee that he would like the city to consider designating other areas within the zone, such as the fairgrounds at Fair Park.
“We don’t want to put all our eggs in one basket, so to speak,” Bazaldua said. “Hensley Field is undergoing environmental remediation. It will be a few years before we see any movement on that, but we believe there is potential for a larger-scale consideration within this citywide zone.”
He said he “fully supports” the designation of Southside Studios, but “wants to see if there are discussions we can have to take advantage of potential tax credits that are available at the fairgrounds and leverage the investments we already have in the facilities and production center that’s there.”
Similar zones have been established in Texas cities, including Austin and Fort Worth.
