State legislator sued over film tax credits

A state lawmaker has been sued by a Lafayette company seeking the return of more than $125,000 it paid for movie tax credits the company hasn't received.

The lawsuit by Apex Transfer and Exchange claims that Rep. Gary Beard of Baton Rouge falsely claimed he owned $156,600 in film infrastructure tax credits from the state and has refused to return the money paid for those credits. Apex purchased the credits in January for $125,680.

Beard, a Republican candidate for lieutenant governor, said he expects the lawsuit to be resolved once he submits a financial audit this week to the Louisiana Department of Economic Development to receive the tax credits.

But Apex claims in the lawsuit that Beard misled the company about why he hadn't received the tax credits for a proposed $500 million project called The Louisiana Film Institute and about the possibility of further tax credits becoming available.

"My clients want their money back," Michael Skinner, a Lafayette lawyer representing Apex, said Tuesday.

The lawsuit asks state District Judge Curtis Calloway to order Beard or The Louisiana Film Institute to return Apex's money and pay damages, penalties, attorney fees and interest.

The film institute project plans pushed by Beard involved an independent film production studio, condominium units, swimming pools, spas and private gyms.

Beard applied for $320,000 in infrastructure tax credits handled by the economic development department for the project. He was pre-certified by state officials for a 40 percent tax credit on construction costs a process that meant his application was approved pending an audit.

But, according to the lawsuit, Sherri McConnell, director of the state's Office of Entertainment Industry Development, informed Beard in a May 4 letter that his application for infrastructure tax credits had been denied because "no expenditures have actually been made in relation to this project."

Despite that letter, Beard sent a letter to an Apex official on May 9, explaining that the delay in securing the tax credits involved waiting for the state Legislature to work out the final rules of the tax credit program, according to documents filed in the lawsuit.

Beard said Tuesday that he is ending his ownership of the Louisiana Film Institute "to remove any gray areas that might arise from the politics." However, Beard's wife, the company's only other owner, will remain an owner, Beard said.

Beard is running against Democratic incumbent Lt. Gov. Mitch Landrieu in the Oct. 20 primary election.

Information from: The Advocate