Day, state to delay tax credit hearings
Developer suing over millions for BR film studio
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Attorneys for Baton Rouge developer Robert Day and the state ironed out an agreement Wednesday that negates the need for a judge to take quick action on $266 million in disputed tax credits for Day’s planned film studio off O’Neal Lane.
The signed agreement presented in court to state District Judge Janice Clark also sets the stage for a trial of Day’s lawsuit against three state agencies to be held in March.
Under the agreement, which was only verbal in nature until Wednesday, Day — if he prevails in court — will have five years after the end of appeals to complete his $665 million studio and receive $266 million in tax credits.
If the state wins, Day would be entitled to a 40-percent tax credit on only the total he spends on the project before Jan. 1, 2010 — absent legislative modification, said Tom Clark, one of Day’s attorneys.
“We’re happy to have an agreement. We look forward to the next step,’’ Day said outside the courtroom.
“We want to build this. We’ve worked very hard for two years to get here,’’ he said. “We obviously will bring in lots of investors that will help us. But we need this to be settled to go forward.’’
The planned film studio is part of Day’s proposed $1.6 billion retail, office and residential development called La Vie.
Leu Anne Greco, an attorney for the Louisiana Department of Economic Development, said the state welcomes a trial.
“It’s what we want,’’ she said. “Tell us if we’re wrong. We think we’re right.’’
Under the terms of a 2005 law, Day and his Red Stick Studio Development LLC applied in February 2007 for a 40 percent tax credit for the planned state-of-the-art film studio.
But a new law took effect in August 2007 that limited the tax credit to $25 million per film studio. The new law also limited tax credits to studio construction that is completed before Jan. 1, 2010.
“He applied for five (years to complete the project). So why not give him the five,’’ said Mary Olive Pierson, an attorney who also represents Day.
The signed agreement presented in court to state District Judge Janice Clark also sets the stage for a trial of Day’s lawsuit against three state agencies to be held in March.
Under the agreement, which was only verbal in nature until Wednesday, Day — if he prevails in court — will have five years after the end of appeals to complete his $665 million studio and receive $266 million in tax credits.
If the state wins, Day would be entitled to a 40-percent tax credit on only the total he spends on the project before Jan. 1, 2010 — absent legislative modification, said Tom Clark, one of Day’s attorneys.
“We’re happy to have an agreement. We look forward to the next step,’’ Day said outside the courtroom.
“We want to build this. We’ve worked very hard for two years to get here,’’ he said. “We obviously will bring in lots of investors that will help us. But we need this to be settled to go forward.’’
The planned film studio is part of Day’s proposed $1.6 billion retail, office and residential development called La Vie.
Leu Anne Greco, an attorney for the Louisiana Department of Economic Development, said the state welcomes a trial.
“It’s what we want,’’ she said. “Tell us if we’re wrong. We think we’re right.’’
Under the terms of a 2005 law, Day and his Red Stick Studio Development LLC applied in February 2007 for a 40 percent tax credit for the planned state-of-the-art film studio.
But a new law took effect in August 2007 that limited the tax credit to $25 million per film studio. The new law also limited tax credits to studio construction that is completed before Jan. 1, 2010.
“He applied for five (years to complete the project). So why not give him the five,’’ said Mary Olive Pierson, an attorney who also represents Day.
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