< Previous146 TEXAS ECONOMIC DEVELOPMENT GUIDE T here’s no escape from the digital age. As viewers, we have become accustomed to an array of new and enticing content that keep us locked in to our black boxes daily. With the latest release of a movie, television show, video game or new music rarely do we consider every aspect behind our entertainment’s background. For those curious, a little research will show there’s a good chance that your earliest or latest obsession was inspired by and made in Texas. The state not only continues to breed a plethora of household names, but has an indisputable way of drawing in new creatives. You bring the ideas. We’ll provide the resources. by ALEXIS ELMORE Paradise Found: Creatives Prefer Texas CREATIVE INDUSTRIESTEXAS ECONOMIC DEVELOPMENT GUIDE 147 Texas knows to bank on growth within the nation’s entertainment industry, there had better be big bank backing it up. U.S. states are scrambling to get resources in place to entice and adhere to the needs of multimillion-dollar productions ramping up across every facet of the industry. But none seem to move at the pace Texas leads with. In turn, the prevalent and steady growth within the entertainment industry comes from years of diligent planning and preparation accumulating among a network of Texas communities. Looks Better on Film Within both film and music, Texas has naturally served as a hotspot for industry growth for years. This has allowed the state to understand the needs of not only its local talent, but what it takes to support a full-scale production. In 2023, the Texas Legislature put their money where their mouth is, scaling the state’s annual film incentive cap from $45 million up to $200 million. Albeit a lower incentive cap than long-established hubs like California, Georgia or New York, the state has taken an alternative route to entice productions. By no means is the state a novice when it comes to film and television productions, leveraging more than 100 years as a prime set location. “Bonnie and Clyde,” “Friday Night Lights,” “Fear the Walking Dead,” “Love and Death,” “True Grit” and so many more iconic projects showcase that regardless of genre, Texas knows how to bring a vision to life, no studio set required. In 2023 the Film Friendly Texas Certified Community program added 14 new communities to a roster that now stands at over 175, touching every corner of the state. The program has created a gold mine in terms of providing an extensive catalog of filming locations, skilled crew and local leadership equipped with industry knowledge and resources. Community leaders stay up to date on the latest industry regulations and best practices for film and digital media by attending regularly scheduled workshops held by the Texas Film Commission. That ensures that any project requests are swiftly fulfilled, preventing production slowdowns often faced in popular film hubs like California. This preparation provides a ripple effect within these certified communities, providing a welcomed economic impact. Once a production team finds the ideal location(s), relevant communities can begin to coordinate supplies, crew, food, transportation and lodging, among other resources needed to see a production through. A full network, with dedicated regional industry professionals, allows filmmakers and crew to produce projects in a multitude of locations across the vast state with ease. Qualifying film and television projects can additionally benefit from the Texas Moving Image Industry Incentive Program (TMIIIP) which provides cash grants from 5% for $250,000-$1 million of in-state spend, scaling up to 20% for $3.5 million or more of in- state spend. This program not only benefits filmmakers but harnesses local talent by requiring 55% of crew to be Texas residents. As of 2023, the program has generated over $2 billion and created 183,000 jobs. HBO’s “Love & Death” series, inspired by events that took place in Wylie, Texas in 1980, was filmed in 12 cities around the state. Photo courtesy of Jake Giles Netter/HBO Max148 TEXAS ECONOMIC DEVELOPMENT GUIDE While the majority of movie magic tends to take advantage of the best mother nature and human history have to offer, the most vital aspect of a production takes place indoors. Conscious of this and the rapid surge of Texas’ growth as a film hub, studio developers are taking note of the space Texas has to offer the entirety of a large-scale production. The Austin region serves as a prime example and will soon gain studio space catered to serving this market long-term. In and around the Austin metro there are currently 28 studio facilities ranging from 250 to 237,000 sq. ft. that cover needs of small- to large-scale productions from equipment to post-production offices, services and amenities. But there’s always room for more, in this case much more. In December 2024, Bastrop 552 plans to open up shop on the first 28 acres of its 600-acre film studio lot. Located 41 minutes outside of Austin in the city of Bastrop, this initial phase alone will bring up to 486,000 sq. ft. across eight studios, 300,000 sq. ft. of warehouse space and 200,000 sq. ft. of office space. While the timing of the next phase of the project is unknown, Bastrop 552 owner Alton Butler initially stated that the site would look to add more studios, warehouses, recreational areas and clubhouses. A drive an hour southwest to San Marcos will take you to where Hill Country Studios will establish 200 acres of studios, workshops, production offices, a food park and on-site vendor village fit to exceed the needs of filmmakers and their crews. The $276 million studio investment was publicly announced in 2022, led by Hill Country Studios Co-Founder and CEO Cory McLoud and Chief Operating Officer Kevin Bar. Construction is set to begin this year to build the initial seven sound stages, two workshops and a welcome center. Phase 1B will supply 250,000 sq. ft. of office space, while phase two completes five more sound stages, two workshops and support space. Options are important, and the state’s harnessing plenty. More to Music “This Music Friendly Texas Community certification isn’t just about music, it’s about economic development and job creation,” said City of Galveston Mayor Craig Brown. “By embracing our music scene, we’re unlocking new opportunities for businesses and artists alike.” The Music Friendly Texas Certified Community program designated the Gulf Coast city of Galveston as its 58th member in 2024. Started in 2016, and the first of its kind in the nation, the program has quickly gained traction in boosting the state’s influential music scene. The economic impact can’t be ignored. The music industry in Texas held 192,000 jobs and generated $26 billion in economic activity in 2022, showing no signs slowing down. Texas has produced some of the most successful artists of our time, cultivating a state-wide ecosystem of industry talent. By showcasing opportunities right at home, it has quickly caught the attention of the nation. March 2024 brought news of a $220 million venue investment from entertainment company Notes Live. The Sunset Amphitheater project will begin construction in McKinney, Texas, this year. By 2026, the company plans to unveil a 20,000-seat venue it promises will be “the largest and most luxurious amphitheater yet,” creating 1,300 new jobs. The project will provide a covered outdoor space, featuring 295 various sized fit pit suites, lounges with food and beverage service. Bastrop 552 has the potential to generate $177.8 million per year. Rendering courtesy of Mode Design CompanyTEXAS ECONOMIC DEVELOPMENT GUIDE 149 “I couldn’t be more excited to be bringing our biggest venue to date to McKinney, Texas,” says Notes Lives Founder and CEO JW Roth. “They say everything’s bigger in Texas, and for the Sunset Amphitheater in McKinney, that was our guiding principle — bigger, and better. McKinney is an incredible community, and we can’t wait to build the most over-the-top venue on earth.” Interest in the future of artistic success also brought two of the industry’s most prolific award shows back to Texas. Over the next several years, Frisco and Austin will host the Academy of Country Music Awards and the Country Music Television Awards, respectively. Embrace the Visual Appeal Following in the footsteps of the state’s successful Film and Music Friendly Texas Certified Community programs, it was announced in February 2024 that Texas had established a new Digital Media Friendly Texas Certified Community program. The new program differs in that its focus is specifically on targeting growth within animation, visual effects, video games and extended reality. For creatives interested, this program additionally introduces a slew of incentives and grants to help get the ball rolling. “Animation, visual effects, video game and XR production are a vital part of the production ecosystem in Texas,” said Texas Film Commission Director Stephanie Whallon. “The Digital Media Friendly Texas Certified Community program represents a forward-thinking network of communities that not only understand the digital media production industries and their needs, but also their importance for driving continued economic growth and ability to showcase the technical skills and artistic creativity of Texas media professionals.” Under TMIIIP, qualifications for video game projects include a $100,000 minimum spend, at least 60% of production takes place in Texas and 55% of paid crew be Texas residents. These projects can receive a cash grant up to 22.5% back on expenditures like wages, legal fees, travel and insurance. The only difference for animation and visual effects projects is that the minimum spend for film and television is $250,000, while commercials require at least $100,000. For productions that take advantage of hiring veterans, filming in underutilized or economically distressed areas or hosting post-production in the state, these projects can earn another 2.5% grant award toward their base incentive rate. For creators looking for a permanent stay, building a facility in the state comes with perks. The Media Production Development Zone Act provides a sales use and tax exemption for the construction, maintenance, expansion, improvement or renovation of a production facility. This incentive spans projects for animation, video game development studios, sound stages, production offices and post- production facilities. Gamer or not, video games created within the confines of Texas have been making an impact around the world since 1981. Call of Duty, Halo, Rock Band, Sims and Words With Friends are among the most popular games to find their start here. Moving forward, Texas is looking to cement its role in the next generation of video game development. Whether it be on-screen or behind the scenes; in the production office or lunch at a local café; in a hotel or in a ride to set, the economic impact of the entertainment industry benefits Texas communities in a multitude of ways. In the end two facts remain true: Creatives thrive in Texas and new opportunities will continue to arise for them. “ Animation, visual effects, video game and XR production are a vital part of the production ecosystem in Texas. ” — Stephanie Whallon, Director, Texas Film Commission150 TEXAS ECONOMIC DEVELOPMENT GUIDE Championships Are Just The Beginning SPORTS & RECREATION Globe Life Field in Arlington hosts the Major League Baseball World Series champions, the Texas Rangers. Photos courtesy of the Texas RangersTEXAS ECONOMIC DEVELOPMENT GUIDE 151 W hen the Texas Rangers won the Major League Baseball World Series last fall, sports fans worldwide got a glimpse of what it means to compete for titles in the Lone Star State. That is why legendary UCLA football coach Red Sanders once famously said, “Winning isn’t everything; it’s the only thing.” In Texas, winning on the athletic field is second nature. Some of the greatest dynasties in sports history hail from Texas. From the Roger Staubach- and Troy Aikman-led Dallas Cowboys to the Tim Duncan- and Kawhi Leonard-led San Antonio Spurs, winning championships is ingrained into the DNA of Texas sports teams. Just think of the many legends who have brought titles home to the Lone Star State: Dirk Nowitzki draining his trademark fall- away jumpers while leading the Dallas Mavericks to the NBA Championship; Derian Hatcher captaining the Dallas Stars to the Stanley Cup; Justin Verlander pitching the Houston Astros to the World Series title; Hakeem Olajuwon of the Houston Rockets dominating the paint on the way to lifting the NBA trophy above his head; Vince Young scampering into the end zone to lead the Texas Longhorns to an NCAA football title over the USC Trojans in the final seconds; the Houston Dynamo winning back-to-back Major League Soccer championships; and many, many more. Let’s not forget the greatest Texas athlete of all time: Babe Didrikson Zaharias. Named by Sports Illustrated as the No. 1 Texas sports star in history, she won five events at the 1932 AAU track and field championships and two No state likes to play, compete & win more than Texas. by RON STARNER152 TEXAS ECONOMIC DEVELOPMENT GUIDE weeks later won two Olympic gold medals. She also won the 1947 British Amateur Golf Championship and 31 professional golf tournaments. Other legendary names in Texas sports history include Sheryl Swoopes, Mia Hamm, Nolan Ryan, Ben Hogan, Lee Trevino, Jack Johnson, Doak Walker, Rogers Hornsby, Sammy Baugh, Byron Nelson, Ernie Banks, George Foreman and Tom Landry. How Houston Changed Hoops No one more personifies Texas, though, than the Phi Slama Jama team of the Houston Cougars from 1982 to 1984. Reaching the NCAA men’s basketball championship game three straight years, this Guy Lewis-coached team of Olajuwon, Clyde Drexler and Michael Young did not just dominate college basketball. It changed the game forever. Mostly a plodding game focused on dribbling, passing and set plays, basketball under Lewis became a showcase of athleticism, full-court fast breaks and the greatest highlight of all: the slam dunk. After Phi Slama Jama, basketball was never the same sport again. It became an international phenomenon that catapulted athletes like Michael Jordan, Magic Johnson, Patrick Ewing, Tim Duncan and David Robinson into the stratosphere of celebrity and influence. Texas has been doing that for a long time. That is one reason even its sports venues are bigger, better and grander than others. From Globe Life Field in Arlington to its next-door neighbor, AT&T Stadium, Texas boasts arenas that redefine the spectator experience. Nearby Frisco built an entire city that embraces the joy of sport. Home to FC Dallas of Major League Soccer, this north Dallas suburb of 236,432 people recently lured the headquarters of the PGA of America and will soon host the PGA Championship on a new course. More than $10 billion of industrial development came to Frisco over the past decade, anchored by the gleaming headquarters and training facilities of the Dallas Cowboys. I had the opportunity to tour this 91-acre complex, known as The Star in Frisco, when it was being built in 2015. Today, it includes the Ford Center — a state-of-the-art, 510,000-sq.-ft. indoor athletic facility shared by the Cowboys, the City of Frisco in North Texas has a 2024 pop. of Since 2020 it’s increased by 236,432 Source: World Population Review It has an annual growth rate of 3.69% 16.6%TEXAS ECONOMIC DEVELOPMENT GUIDE 153 Frisco and the high schools of the Frisco Independent School District. Cowboys President Stephen Jones, son of team owner Jerry Jones, gave my colleague Charles Fitzgibbon and me the grand tour. As he described the vision of his father and the city, Stephen talked at length about how the Cowboys’ collective desire to change pro sports coalesced with the hopes and dreams of then- upstart Frisco. Youth Sports Find a Nurturing Home We heard much the same when we spent time with Clark and Dan Hunt, owners of FC Dallas of Major League Soccer and the reigning Super Bowl champion Kansas City Chiefs. Like the Jones family, the Hunts believe in being the best in the business while ensuring that everyone in the community benefits from this investment into building a winner. That is why both organizations invest so much into youth sports and the facilities that nurture young athletes. It is part of their mission. Look around Texas and you’ll see this happening in every corner of the state. From the Frisco RoughRiders minor league baseball team to Corpus Christi FC in United Soccer League Two, the rising athletes of today are being molded into the superstars of tomorrow. From cricket and disc golf to pickle ball and triathlons, Texas is a greenhouse growing future champions. The new catchphrase of Texas should be: “Winning isn’t everything. It’s the start of something much better.” A statue of Hall-of-Fame pitcher Nolan Ryan stands outside Globe Life Field.154 TEXAS ECONOMIC DEVELOPMENT GUIDE NOWHERE TOPS TEXAS QUALITY OF LIFE Since 1886, the State Fair of Texas has promoted Texas agriculture, education, and community involvement. Photo courtesy of State Fair of Texas Day of the Dead San Antonio River Parade Photo courtesy of Travel TexasTEXAS ECONOMIC DEVELOPMENT GUIDE 155 P eople are moving to Texas more than anywhere else in America. For three consecutive years, the Lone Star State has netted the largest number of movers in one-way U-Haul® equipment, consistently ranking it No.1 Growth State in the U-Haul Growth Index “People are still flocking to Texas,” said U-Haul Company of Northeast Dallas President Zane Rowland in a statement. “The Dallas-Fort Worth metroplex is attracting new companies every day. Businesses are relocating to DFW and Texas because we’re a cost-effective option.” With a steady stream Opportunities unlike anywhere else. by LINDSAY LOPP Día de los Muertos Festival San Antonio Photo courtesy of Travel TexasNext >