Goldwater Institute Press Release
January 25, 2010
Phoenix--Today in a unanimous decision the Arizona Supreme Court declared that government subsidies to encourage development violate the Gift Clause of the Arizona Constitution unless the developer offers tangible benefits of equal value in return. The ruling clarifies previous decisions the court believed were confusing and applied the rule prospectively. The Court declined to invalidate the CityNorth subsidy and sent the case back to the Arizona Court of Appeals to consider other legal challenges.
The ruling in Turken v. Gordon is a victory for the Goldwater Institute Scharf-Norton Center for Constitutional Litigation, which filed the lawsuit on behalf of six small-business owners in 2007 in an effort to stop giveaways of taxpayer money. "The Court's decision vindicates a core protection of taxpayer rights in our state constitution," said Goldwater Institute litigation director Clint Bolick. "The days of rampant corporate welfare in Arizona are coming to an end."
Read the whole thing of course.
If you remember this case in Phoenix put further negotiations between the City of Kingman and the landowners/developers of the Kingman Crossing area on hold. I don't know how this all shakes out based on this decision, if anything, I'd be happy just to see some news on the potential project again.