EIDC Chief Facing Removal

Los Angeles City Councilwoman Wendy Greuel said Thursday that she has enough support on the executive committee of the Entertainment Industry Development Corp. to force Cody Cluff, the film permitting agency’s beleaguered president, to take a paid leave of absence.

“We have a duty and a responsibility to take action,” Greuel said. “I strongly believe I have all the votes necessary.

“I think the position that I have taken, and the one that [the executive committee] will take tomorrow, is needed in looking to the future of this organization and its ability to operate,” she said.

Last week, the councilwoman, along with Mayor James K. Hahn and county Supervisor Zev Yaroslavsky, called for Cluff to go on leave until his legal difficulties were resolved. The three elected officials are on the 11-member executive committee, which is scheduled to meet today to discuss Cluff’s fate and other issues.

The remaining members of the committee refused to reveal how they would vote, although Supervisor Mike Antonovich and City Councilman Alex Padilla said earlier this month that no action should be taken until two pending studies are completed.

Cluff has said he would not step down, and Thursday he reiterated his intention.

“I’m going to stay the course and see the audit through,” he said, referring to a pending study ordered by the executive committee. “I don’t feel that I should take a voluntary leave of absence. I don’t think that’s appropriate at this time.”

Cluff has been president of the EIDC since it was formed in 1995 to streamline city and county permitting procedures for film and television productions, and to promote Los Angeles County to the entertainment industry.

Cluff is under criminal investigation for allegedly misusing EIDC funds through lavish spending and political contributions to elected officials, including members of the board of directors and executive committee.

Neither Greuel nor Yaroslavsky has received EIDC campaign contributions, although individual staff members gave $5,400 to Greuel’s campaign. Hahn received $1,000 during his mayoral campaign from EIDC staff members and $2,000 from the EIDC.

The discussion of Cluff’s fate is expected to take place behind closed doors, but the committee’s final decision will be announced publicly.

Cluff has argued that under the organization’s bylaws, the full 49-member board, not the executive committee, has the power to remove him. The full board meets only once a year, usually in January.

Greuel said that she is asking the executive committee to only put him on a leave of absence, not to remove him.

She said Cluff should have either resigned or taken a leave of absence long before now.

“It is necessary and long overdue,” said Greuel, a former executive at DreamWorks. “People in the entertainment industry believe this organization provides a critical service, and their concern is that the more we delay putting Mr. Cluff on leave, the less credibility this organization will have.”

“We have every right and a responsibility to ask for an administrative leave,” she said.

Last week, Cluff’s lawyer, George Newhouse, accused Greuel, Hahn and Yaroslavsky of violating their contractual responsibilities as corporate board members to protect the EIDC when they urged Cluff to step aside.