Austin city leaders decide to give Villa Muse forty years worth of tax breaks, but the deal still has to be negotiated.

The community would be developed on rural farmland in East Travis County, less than five miles out of the Austin city limits.

Developers want to use the 1,900 acres for the studio-centered community, complete with sound stages, recording studios, movie sets and residential living.

“I would like to give it a shot, give it a month or so let's see if we can work this out,” said Brewster McCracken of the Austin City Council.

On Thursday project coordinators asked council members to grant a release from typical city development rules and taxing authority. They want the break for 40 years - that's when development is expected to be complete and the revenue should be steady.  However, council members were concerned they may never regain authority over the property if they agree to the developer’s terms. The plan was ultimately rejected by a four to three vote.

“It's a great vision, it's a grand vision, I would love to see it happen, but at the same time as a council member we have to make sure we do it right and especially when it's going to be future councils that are going to have to inherent this,” said Jennifer Kim of the Austin City Council.

 Instead, council members voted to negotiate another way to give Villa Muse the tax breaks it wants, but without giving up the City’s right of jurisdiction. Council members jumped at the promise of a $6.5 billion economic boost annually and more than 40,000 new jobs Villa Muse could bring.

“I don't see how I can be up here talking about building a landfill a waster water treatment plant, and an electric substation next to this community, spending thousands of dollars from the state and not vote to move this project forward in the hopes of building something out there other than those three stated industrial use sites,” said Mike Martinez of the Austin City Council.

The negotiation period is expected to last five weeks. During that time the city is expected to work with developers to create an agreement against annexation for 40 years, but under strict guidelines and penalties if Villa Muse doesn't follow through on its contract.