For many decades, our state’s elected officials and business leaders have worked hard to lure new industries to Nevada, with the aim of reducing the risk inherent in an economy lacking diversity. Despite these efforts, Nevada’s economy today remains predominantly dependent upon the health of a single industry. This was made all too clear by the disproportionate impact Nevada experienced during the pandemic as the hospitality industry was largely shut down. Unemployment in Nevada jumped to 13.5 percent in 2020, far above the nationwide average of 8.1 percent, and the state’s general fund lost millions in revenue typically generated by visitor spending. Four years later, some sectors of our state’s economy are still recovering.
We now have a generational opportunity to diversify and grow our state’s economy. A major global media corporation, Sony Pictures Entertainment, stands ready to partner with us at Howard Hughes Corp. to privately finance a $1.8 billion dollar project that includes production studio space, as well as a robust mixed-use component with retail, commercial and hospitality offerings — driving a broad mix of tax revenue for state and local governments
Arguments that position incentives for this deal as in any way dangerous to the state’s economy — or that suggest comparison to film programs in other states — are misinformed. Simply put, Nevada will not expend a single dollar until this multibillion-dollar facility is built and until movie and television productions are completed.
The return on that investment is tremendous. The construction phase alone supports up to 19,000 new jobs, and more than 15,000 permanent jobs, many paying more than $100,000 per year, will be created going forward. This capital investment alone distinguishes our project and incentive structure from those here or in any other state, as does the return to all Nevadans.
When considering the total return on investment, recent expert studies show that we can expect an estimated $2.87 billion dollars in economic impact during construction and $2.85 billion per year once construction is completed and the studio and related development is fully operational.
We also have the unique opportunity to nurture and grow the next generation of talent right here in Nevada. Together, Howard Hughes and Sony are committed to investing in workforce training and development, including mentorship and internship programs and partnerships with local trade associations and higher education institutions. We have committed to build a combination production and training facility on the Nevada Partners campus to spearhead these local workforce development efforts. This project will also ensure that opportunities exist for local small and diverse businesses, which are needed to provide services for productions, including security, transportation and catering.
Make no mistake — Nevada is not the only state looking at the film industry as a potential economic opportunity. According to the National Conference of State Legislatures, at least 18 states have either expanded or implemented film tax incentive programs since 2021 to broaden their appeal for productions. One of the many clear advantages we have in Nevada is a shovel-ready project on an approved site just waiting for the starter pistol.
Las Vegas has long been known as the “entertainment capital of the world,” and there is simply no better place to welcome a thriving film production industry.
David O’Reilly is the chief executive officer of Howard Hughes Corp., which develops master-planned communities and mixed-use properties including Summerlin, Nevada; The Woodlands, Texas; and Downtown Columbia, Maryland.
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