OMAHA — Randy J. Goodwin sits alone these days at Fallen Giant Films headquarters, a space rented with state dollars that stretches across much of the 11th floor of a trendy midtown Omaha highrise.
Eight months ago he was surrounded by interns, office workers and a crew that shot and processed movie segments. Since December, not even Goodwin shows up regularly.
“We can’t work. We can’t do post production. We haven’t been able to pay anybody — we are still in suspension,” said Goodwin, an Omaha-born actor and director whose Fallen Giant company was awarded a $5 million slice of the $235 million North and South Omaha Recovery Grant program.
So far, the state over two years has paid Goodwin’s venture nearly $3.4 million. Seen in television series such as “Vampire Diaries” and “Dynasty,” his goal was to build a Hollywood-esque industry in his hometown. More specifically, the contract with the Nebraska Department of Economic Development called for creation of at least three Nebraska film and TV projects in qualified low-income census tracts to help prove the viability of a local film sector. It called for a focus on retaining youth and growing the economy and community.
‘Sweating us out’
The Nebraska Examiner first reported on the Fallen Giant funding freeze earlier this year. In response to questions about a status update, DED said that Fallen Giant had produced three film projects, per the terms of its contract. But the state agency cites Fallen Giant’s alleged “significant noncompliance with respect to the financial management of its grant funds.”
During suspension, the state said, it has authorized payments for what DED believes is “reasonable compensation” for Fallen Giant staff to answer compliance questions and for “core operating expenses.”
Goodwin, who disagrees with the DED assessment overall, said his operation is paralyzed. He said the state since December has frozen funding, save for roughly $60,000. He said his team has produced receipts and answers but that the state officials keep adding demands. Noting the state’s own growing budget deficit, Goodwin believes DED is “sweating us out” until Fallen Giant “walks away” from remaining grant dollars.
DED, in a statement last week, said it has spent a “considerable amount of resources” working with Fallen Giant and that the group’s expenses continue to be evaluated to ensure they were “reasonable, allowable and allocable.” That includes a November gala at the downtown Omaha Holland Center that Goodwin said cost about $31,000 and drew an estimated 600 guests, including various public officials.
“What we brought was Hollywood,” said Goodwin. “Everything we have to do has to be on a level not seen in Nebraska, and we’re doing it on a shoestring budget.”
Both sides say they continue to work toward a resolution that could include resuming award payments. But the DED said a possible remedy also includes asking for a return of funds already distributed.
The situation has prompted Goodwin to seek legal counsel. Attorney Bill McGinn argues that DED guidance to grant awardees was lacking and that expenses incurred by Fallen Giant are allowable under Internal Revenue Service rules. He believes it is the state that is not complying with contractual obligations.
“They say you need ABC. We give them ABC and they say now we need D, E and F,” said McGinn.
Unprecedented grant program
The conflict marks another in a complicated, unprecedented state grant program rooted originally in pandemic recovery funds intended to revive North and South Omaha and marked at various times over the past four years by controversy, community complaints and celebration. The funding source later was swapped for state general funds to, as lawmakers said at the time, allow more time for multi-year projects to develop. Dollars are to be expended before 2027 wraps up.
DED confirmed that it has placed another North-South grant recipient’s funding under suspension and has placed multiple others on “corrective action plans” to address areas of noncompliance.
To date, the agency said that DED has terminated four contracts with small businesses that had been awarded North-South grants but were unable to begin their projects.
Another dozen awardees in the “small business support” category never entered into an official contract with the DED, the agency said, though each had been selected to receive a $50,000 award.
In all, roughly 130 groups and businesses were announced as DED choices for the $235 million grant program during back-to-back press conferences in January 2024 that were led by Gov. Jim Pillen and Omaha’s mayor in both North and South Omaha.
Originally, 367 applications were vetted.
Award amounts ranged, on the high end, from $39 million to a South Omaha coalition that has launched multiple projects to rejuvenate the Q Street corridor to, on the lower end, $50,000 awarded to entrepreneurs. About 80 small business ventures originally were announced as winners of a $50,000 award.
Then-DED director K.C. Belitz said that over a five-year period he expected 9,250 new jobs in North and South Omaha to materialize as a result of the slate of projects and their “ripple effect.”
Does dream die?
On a recent visit to Fallen Giant, Goodwin was the lone person in the grantee’s Blackstone Plaza headquarters where he said he is behind on rent that runs about $10,000 a month. Files sat piled on tables. Hollywood film posters decorated the walls. A hallway was lined with tall banners featuring movie projects that Goodwin said were started as part of the grant but not released.
“When I’m here I’m still working, pumping out scripts…”
Goodwin said three of 11 team members, including himself, technically remain with the company but aren’t currently being paid. He said the DED “forbade us to do any work that would be construed as part of the (grant).”
Among expenses being challenged, Goodwin said, are meal reimbursements at 88 Tactical, which he once represented as brand ambassador. Goodwin said that relationship ended when he got the grant so he believes there should be no conflict. He also said the meal prices for Fallen Giant guests there were more reasonably priced than other options.
Asked about private investors, Goodwin said some potential funders have gone cold, considering his situation “too murky.”
He said he has turned some of his attention toward an unrelated real estate venture in Oklahoma, where he also has a cabin to stay. He said most of his original team members have moved on, unable to pay their Omaha rent.
Goodwin said he is pursuing a meeting with Pillen.
Sometimes, Goodwin said, he questions whether to continue to pursue his dream to build a piece of Hollywood in Omaha.
“If home is going to treat me like this, I’ll go build it somewhere else,” Goodwin said. Then he adds: “But I think the people want me here.”
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