The Amarillo Economic Development Corporation (AEDC) voted Tuesday to amend its incentive agreement with Sharpened Iron Studios (SIS), extending the studio’s performance period to begin in 2028 while adding new accountability measures designed to protect public investment.
The amendment comes after Sharpened Iron Studios requested additional time to meet the requirements of an incentive package originally approved to support the growth of the Amarillo-based film production company.
Under the original agreement, SIS was eligible for up to $1 million in incentives. The package included $500,000 tied to the hiring of 40 full-time employees and an additional $100,000 annually for up to five years if the company documented at least $2.5 million in local spending each year.
According to AEDC officials, the studio has not been able to meet those performance benchmarks due to a series of industry and local challenges, including the COVID-19 pandemic, Hollywood labor strikes, and the company’s dispute with Amarillo College over leasing arrangements at the college’s downtown campus.
“I’ve always enjoyed working with the AEDC staff. I mean they are absolutely committed to the growth of Amarillo and they’ve been phenomenal to work with, particularly during this time that has been so difficult for Sharpened Iron Studios,” said Sean Doherty, CEO of Sharpened Iron Studios. “So working with Senior Vice President Nelson getting the requested financial documents that the staff wanted, that the board wanted has been really a great process and easy to work with them on.”
During the meeting, board members reviewed the company’s financial position and future plans. AEDC Board Chair Elliot McKinney noted that financial reports submitted by SIS showed approximately $207,000 in available funds in January, declining to about $17,000 by the end of May.
Doherty attributed the decrease to several major expenses. He said the termination of the company’s lease agreement with Amarillo College in January resulted in the loss of a film production worth approximately $75,000. Additional costs included legal fees related to litigation in Potter County, repayments to investors, and expenses associated with relocating studio equipment.
“We just had an important, large amount of expenses, and then other projects and crews, that invoices came due right after the end of the year, which took our reserves down,” Doherty said.
Despite recent setbacks, Doherty told board members that conditions within the film industry have stabilized and that SIS is actively pursuing new opportunities. Among those plans is a religion-based production called “Bite Size Bible,” which he said could receive approximately $7 million in funding for its first four seasons.
“We are actually extremely confident with our new bite-sized Bible series alone that we will be able to meet the goals and the expectations that we have for the studio and that AEDC had originally and certainly have after today’s vote,” Doherty said.
Doherty also discussed efforts to modernize the studio’s production capabilities through smaller sound stages and the potential creation of a film school in partnership with West Texas A&M University to help develop a local workforce.
“So that’s our plan, that’s our future. We’re going to be here, going to build, going to reach production,” Doherty said.
AEDC leadership said the decision to grant an extension reflected both the company’s local roots and the extraordinary circumstances affecting the film industry over the past several years.
“I think it’s twofold. It’s a local company and they’ve been in business here many years and they has problems with the strikes and COVID and we think if they perform hard they can come back and we want to support them,” said Andreas Eckstein, president and CEO of the AEDC.
The amended agreement includes new safeguards. Sharpened Iron Studios must execute a $500,000 promissory note carrying an 8 percent interest rate and provide semi-annual progress reports, including financial assessments, to AEDC staff.
Following more than an hour of executive session deliberations, the AEDC board voted 4-0 to approve the amendment. Board member Brian Bruckner was absent from the meeting.
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