George Lucas film production drops plans for studio The company and its backers said the new production studio would generate hundreds of high-paying jobs and tax revenue. Lucasfilm hoped to break ground by next year. But the project generated strong opposition from home owners and environmentalists who said it would increase traffic, noise and environmental damage on the pristine countryside, despite company promises to preserve open space and reduce impacts on the community. The Marin County planning commission unanimously approved the studio project in February, but opponents appealed that decision to the county Board of Supervisors last month, leading to further delays. "The level of bitterness and anger expressed by the home owners in Lucas Valley has convinced us that, even if we were to spend more time and acquire the necessary approvals, we would not be able to maintain a constructive relationship with our neighbours," Lucasfilm said in the statement. Liz Dale, president of the Lucas Valley Estates Homeowners Association, said she was surprised by the decision. "We are glad we don't have to worry about the potential impacts we were worried about," Dale said. We don't want to describe it as good news or bad news, but I can understand why another location would be better for this type of facility. Dale said any proposed housing development on the property would have to be "suited to the zoning, the people who live here and the people who come here." Local business leaders who championed the project said they were devastated by the announcement. "It sends a very disturbing message to any company thinking about growing or starting in Marin," said Cynthia Murray, president of the North Bay Leadership Council. It's a model project. If this project can't get approved, I don't know what project can get approved. Lucasfilm spokeswoman Lynne Hale said two cities have reached out to the company offering "substantial incentives" to build the new studio, but she could not discuss specific locations. The firm is already in talks with developers about selling Grady Ranch, she said. "It makes me sad that we cannot build the studio in Marin," Hale said. Other communities understand the economic and educational benefits of having a company such as Lucasfilm in their cities.