Город Лас-Крусес и штат Нью-Мексико подали иск о выселении студии 828 Productions для взыскания 1,53 млн долларов

Las Cruces, state seek foreclosure to recover $1.53M from film studio 828 dispute LAS CRUCES, N.M. - (KFOX14/CBS4) — A legal fight over more than $1.5 million in public economic development money is escalating in Las Cruces after the city terminated its partnership with film studio 828 Productions earlier this year. Following a dismissed legal challenge earlier this year, 828 Productions is again challenging the city’s actions in court. RELATED: Court dismisses 828 Productions’ challenge to Las Cruces partnership termination At the same time, court documents show the city and the New Mexico Economic Development Department are seeking to foreclose on two properties connected to 828 as part of an effort to recover more than $1.5 million in disputed clawbacks. In February, the Las Cruces City Council terminated its agreement with 828 Productions, citing concerns over the company’s performance. 828 first challenged that decision through a separate court action in March, but that case was later dismissed for lack of jurisdiction, without the court deciding the underlying dispute. On May 12, 828 filed a more than 200-page complaint for breach of contract and asked the court for a temporary restraining order to block enforcement of the disputed clawbacks as the case proceeded. Six days later, Judge Casey Fitch denied the request. Court documents said there was no immediate emergency at that time because no foreclosure case had yet been filed, but the order added that 828 could later seek relief if a foreclosure action was filed. The city and the New Mexico Economic Development Department filed a foreclosure case the following day. The two cases have been consolidated, but the court has not yet ruled on whether the clawback is valid or whether foreclosure can proceed. The city and state’s lawsuit seeks foreclosure of liens on properties at 100 S. Church St. and 106 S. Miranda St. Court documents show the government’s case seeks approximately $1.53 million in disputed clawbacks. About $184,000 is tied to what the city and state say was a late economic impact report. The bulk of the claim, about $1.35 million, is tied to a property at 300 S. Compress. Court records show it reverted to its seller following a payment default in August 2025, and the government argues that loss triggered a facility-closure clawback. In its formal court answer, 828 acknowledged it did not inform the city when ownership at the property changed. The company said no notice was required because it did not cease operations. 828 denied that the city or state is entitled to damages or foreclosure. 828 CEO Todd Lundbohm provided the following statement. The City filed its foreclosure action immediately after 828 filed its own lawsuit challenging the City’s arbitrary decision to demand a clawback of the economic development money 828 relied on to move to Las Cruces. These two cases have since been consolidated, and 828 expects the Court to resolve the legality of the City's actions first, since that question will determine whether 828 even owes money to the City. If the Court finds that 828 has complied with its obligations, then the basis for any foreclosure will be moot. We don’t expect the foreclosure to proceed but won’t speculate much about specific outcomes while it is pending before the Court. What we can say clearly is that 828 has more than met its obligations under its agreement with the City. We came to Las Cruces to build a film production business in Southern New Mexico, and our production spending has always been on track to hit the 10-year target agreed to with the City. 828 has faced challenges and has had to adapt since relocating to Las Cruces. We have weathered two national industry strikes, navigated a film economy that is significantly contracting across the country, and have overcome regulatory challenges with both the state and local government while growing a new business. But the dispute with the government is not a dispute with the people of Las Cruces, the residents of New Mexico, or the film community here, and we don’t want it to be confused with one. Frankly, a lot of working film professionals in New Mexico feel frustrated right now too. Recent reporting has highlighted film workers affected by the current film production slowdown, many taking second jobs just to get by, and small businesses built around this industry having to reinvent themselves because the work isn’t there the way government press releases suggest. There’s a real gap between how the industry’s health gets announced and how it’s actually experienced by the people doing the work, and that gap matters to us because our commitment has always been to be create opportunities within rural New Mexico in a way that big companies like Netflix and NBC Universal simply cannot. For example, 828 is responsible for both the largest and second largest film productions ever filmed in Las Cruces history. While the company has also brought in large productions to other parts of Southern New Mexico, such as Eddington, our focus is on growing a Las Cruces film industry. Broadly, the goal of 828’s suit is accountability: making sure the City and State agencies that made commitments to this company, and to this industry, actually follow their laws and the contracts they created, so that 828 and other companies like it can keep investing here with confidence. We’re pursuing that accountability through the courts, but we’re doing it while continuing to produce, hire, and build in Las Cruces with a smaller physical footprint. This fight with government isn’t going to become an excuse to step back from the community we came here to support. The mission hasn’t changed – the circumstances around it have – and we’re still here producing film. The city did not respond to a request for comment as of the report. No judge has ruled that 828 breached the agreement, that the clawback is valid, or that either property may be sold. RELATED: Las Cruces ends partnership with film studio over unmet expectations Sign up to receive the top interesting stories from in and around our community once daily in your inbox.