Film Companies Sue Over Lost Iowa Incentives

Filmmakers have filed two lawsuits seeking to force the state to make good on promised incentives to make movies in Iowa.

Iowa Eye Entertainment LLC, Daedalus Film AG, C-Films France SAS, Clean Out Productions Inc. and Clean Out Film Services Inc. have sued the Iowa Department of Economic Development. The agency administers Iowa's film promotion program.

The companies claim the state approved $6.5 million in tax credits for them to make a movie in Iowa.

A telephone message left Monday for Stanley Thompson, the attorney representing the companies, was not immediately returned. The Iowa attorney general's office declined comment.

The film incentive program is under investigation after reports surfaced of sloppy bookkeeping in the Iowa Film Office and questionable spending by some movie makers who sought tax credits. Three officials in the Iowa Department of Economic Development have lost their jobs over the matter and Gov. Chet Culver's administration has suspended the program.

The lawsuit, filed last week in Polk County District Court, claims the state failed to execute a contract for the incentives after Culver halted the program after allegations of mismanagement.

The companies said the order doesn't address projects that had already been approved.

The lawsuit said the film project became a registered project through the program in August. As a result of a confirmation agreement with the state, the companies spent $3 million in preproduction costs, such as salaries, set construction, casting, equipment rentals and the purchase of used vehicles for a crash scene.

As a result of Culver's order, Iowa Eye has been unable to obtain access to funding needed to continue production.

"Iowa Eye will suffer irreparable injury if temporary relief is not granted because production ... cannot continue without the executed required contract," the lawsuit said.

Iowa Eye filed one lawsuit independently of the other companies asking the court to order the Iowa Department of Economic Development to "promptly prepare, execute and provide to Iowa Eye a written contract" in which the state will issue tax credit certificates for up to $6.5 million.