The judge ruled the Iowa Department of Economic Development has to provide a contract to Iowa Eye Entertainment. Iowa Eye did have an initial agreement which promised a required contract.
The judge ruled IDED's failure to give Iowa Eye its contract is unreasonable and it failed to give a reasonable explanation for not providing a contract. The judge also ruled Iowa Eye would suffer irreparable injury, because the film maker could not close on financing and the cast of the movie "Clean Out" would bail out.
Finally, the judge agreed with Iowa Eye's argument that Governor Culver does not have the authority to suspend this phase of the program.
Now, Iowa Eye can move forward with its film and eventually apply for $6.5 million in tax credits. This ruling does not mean Iowa Eye will receive the entire amount. It must first make the movie and submit receipts for approval.
The Attorney General's office also says it is reviewing all of its options including having the Supreme Court review the ruling.
Twenty-two other film projects are in the exact same situation. They were given initial approval but did not get formal contracts before the suspension of the program.
So, will Tuesday's ruling bring a flood of lawsuits against the state?
Casting director Bill Marinella says, "Absolutely they're going to be sued and absolutely there's going to be more lawsuits...the governor was not forth coming, he gave no indication but I know these other films they have not received their tax credits to the best of my knowledge. I don't want to say the names of the films but I have spoke with many of the producers, some of them are friends and they have not received their tax credits and it doesn't look like they're going to. They're going to fight tooth and nail which is going to cost the Iowan tax payer an awful lot of money five years down the road."
The ruling comes too late for Marinella. He couldn't wait for the courts to act and moved to Michigan where the state's film tax credit program remains in place.
The next focus for pending movie projects will be this Friday. That's when the judge will determine if Iowa Eye owner Glen Dewalt should obtain an additional bond or funding to help get his project back on track.
The judge ruled IDED's failure to give Iowa Eye its contract is unreasonable and it failed to give a reasonable explanation for not providing a contract. The judge also ruled Iowa Eye would suffer irreparable injury, because the film maker could not close on financing and the cast of the movie "Clean Out" would bail out.
Finally, the judge agreed with Iowa Eye's argument that Governor Culver does not have the authority to suspend this phase of the program.
Now, Iowa Eye can move forward with its film and eventually apply for $6.5 million in tax credits. This ruling does not mean Iowa Eye will receive the entire amount. It must first make the movie and submit receipts for approval.
The Attorney General's office also says it is reviewing all of its options including having the Supreme Court review the ruling.
Twenty-two other film projects are in the exact same situation. They were given initial approval but did not get formal contracts before the suspension of the program.
So, will Tuesday's ruling bring a flood of lawsuits against the state?
Casting director Bill Marinella says, "Absolutely they're going to be sued and absolutely there's going to be more lawsuits...the governor was not forth coming, he gave no indication but I know these other films they have not received their tax credits to the best of my knowledge. I don't want to say the names of the films but I have spoke with many of the producers, some of them are friends and they have not received their tax credits and it doesn't look like they're going to. They're going to fight tooth and nail which is going to cost the Iowan tax payer an awful lot of money five years down the road."
The ruling comes too late for Marinella. He couldn't wait for the courts to act and moved to Michigan where the state's film tax credit program remains in place.
The next focus for pending movie projects will be this Friday. That's when the judge will determine if Iowa Eye owner Glen Dewalt should obtain an additional bond or funding to help get his project back on track.
