Sharpened Iron Studios will have until 2028 to fulfill the terms of its $1 million economic incentive agreement after the Amarillo City Council approved an amended deal Tuesday that gives the company more time while adding new financial safeguards for the city.
The amendment comes after the Amarillo Economic Development Corporation reviewed the studio's performance in June and determined it had not met the benchmarks outlined in the original agreement. Rather than terminate the incentive package, the AEDC recommended extending the performance period and increasing oversight as the company works toward its commitments.
The original agreement allowed Sharpened Iron Studios to receive up to $500,000 after hiring 40 full-time employees. The company was also eligible for an additional $100,000 annually for up to five years. In return, the studio agreed to document at least $2.5 million in local spending each year.
Under the revised agreement approved Tuesday, the performance period will begin in 2028. The company must also meet with the AEDC twice a year to provide progress updates and will be required to repay the incentive funds with 8% interest if it fails to meet the agreement's terms.
Councilmember Tim Reid said the revised agreement strikes a balance between protecting the city's investment and giving a business another opportunity to succeed.
"Amarillo is a growing city. This is a good place to be, not only because of cost of living, but the type of neighborhoods we have and everything that a city would like to be. And so if we show that we're working with businesses, even if they do default, that there's hope for them. And that's what we want to do," Reid said.
Tuesday's vote comes after a difficult stretch for the film production company, which has also been involved in a separate legal dispute with Amarillo College over its downtown campus lease.
In October 2020, Amarillo College signed a 50-year lease with Sharpened Iron Studios to redevelop its Polk Street property into a soundstage and film school. The agreement was amended in March 2023 to require the studio to invest $8 million in renovations.
After a May 31, 2025 deadline passed, the college said the company had failed to meet key development milestones. Sharpened Iron Studios argued the project had been delayed by the COVID-19 pandemic, asbestos remediation and the Hollywood talent strikes.
The Amarillo College Board of Regents voted unanimously in June 2025 to terminate the lease. A Potter County judge later ordered the studio to vacate the property and pay the college's legal fees. After an unsuccessful appeal seeking a jury trial, the company officially began moving out of the downtown facility in January 2026.
The lease dispute and the AEDC incentive agreement are separate matters, but both have shaped the studio's recent relationship with local government. With Tuesday's approval, city leaders opted to keep the economic development agreement in place while adding stricter reporting requirements and financial protections. The revised terms give Sharpened Iron Studios another opportunity to meet its hiring and local spending commitments while ensuring the city has a path to recover its investment if those goals are not met.
