Wednesday, June 03, 2009

Case goes to AZ Supreme Court...

Back on May 22nd I wrote a post about the legal battle involving a developer that made and agreement with a municipal government. The Arizona Supreme Court made its decision to go ahead and hear that case.

More about that here from this report...

The battle over CityNorth is headed to the Arizona Supreme Court.

Both the developer of the project, Klutznick Co., and the Goldwater Institute, which filed suit to end the incentive agreement between CityNorth and the city of Phoenix, will have their arguments heard before the state’s highest court.

At issue is an economic development agreement between Klutznick Co. and the city. The conservative Goldwater Institute says the $97.4 million tax incentive package given to the mixed-use, partially built project is not in the best interest of taxpayers.

The Goldwater Institute challenged the CityNorth agreement in court claiming it violated provisions of the state gift clause. But a Maricopa County Superior Court judge ruled in favor of the developer and city in April 2008 and dismissed the case. The Goldwater Institute appealed the decision and the U.S. Court of Appeals overturned the lower court’s decision late last year.

Klutznick, along with the city, then asked the Arizona Supreme Court to review the matter. The Supreme Court announced Monday that it will indeed hear the case. No date has been set for oral arguments, but they will likely be heard in the fall.

This case apparently is one thing that has put the possible negotiations between the city of Kingman and a different developer on a public/private partnership to build an interchange along Interstate 40 near Kingman Crossing on hold until after the decision of the Supreme Court ruling.

Shame really, since the plaintiff in the CityNorth deal has supported such agreements for actual beneficial infrastructure projects that would enhance the community. Something an interchange would do for Kingman at this time.

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