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How South Side Studios factors into Dallas’ economic development strategy

The city is pursuing a designation that would allow for tax breaks in the name of job creation.

As Dallas pursues a state designation as a media production hub, the city’s economic development committee will eye incentives for the South Side Studios along Botham Jean Boulevard.

A joint venture formed in 2023 between North Texas-based real estate developer Matthews Southwest and Talon Entertainment Finance, South Side Studios Dallas, LLC, is looking to invest in a few buildings on the property near Forest Avenue.

South Side Studios already hosts production for television series such as USA’s “Queen of the South” and TBN’s “The Chosen.”

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Its existing facilities include about 70,000 square feet of stage space and production offices at its west building, with its building near Forest Avenue hosting a mill area, wardrobe storage and a prop shop.

Now, the partnership is proposing renovations spanning a studio production facility with three sound stages, hair and makeup rooms, production offices, a commissary and green rooms for waiting or lounging. One of the soundstages would include an LED virtual production wall.

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Additional improvements include upgrades to the roof and HVAC, along with sound-proofing.

The expansion of South Side Studios coincides with Dallas’ pursuit to become both a Media Production Development Zone and a Qualified Media Production Location.

Both state designations administered by the Texas Film Commission allow for tax breaks to create new jobs and encourage recurring capital investment.

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The renovations at South Side Studios are estimated at about $6.2 million, with another $1.5 million slated for furniture, fixtures and equipment.

If South Side Studios becomes a state-endorsed location, it could receive sales tax exemptions for construction and related materials. The tax break would see Dallas forgo about $150,000 in sales tax, while the state’s loss would be about $456,000.

The studio is expected to increase regional economic activity by $13.6 million, according to a study from public policy firm TXP, Inc.

Next steps include the city council authorizing the city as a production zone, then putting forward the South Side Studios project as a qualified location within the production zone. City council is set to review the matters on May 22.

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