Arizona Supreme Court rules against Peoria in subsidy case; Jordan Rose, founder and president of Rose Law Group, weighs in with note to developers

Photo via Huntington University website

By Philip Haldiman | Your Valley

The Arizona Supreme Court ruled in favor of an appeal claiming that the city of Peoria illegally entered into an agreement to give up to $2.6 million in taxpayer money to Huntington University in exchange for opening a school in the P83 Entertainment District.

Previously, the city prevailed at the trial court and in the court of appeals, but the Supreme Court reversed a Maricopa County judge’s ruling in favor of Peoria.

In its ruling, the Supreme Court said, “In effect, Huntington University and [its landlord’s] promises are no different than a hamburger chain promising to operate in Peoria in exchange for monetary incentives paid by the city in hope of stimulating the local economy.”

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“This ruling from the Arizona Supreme Court reminds us how strong the Arizona Constitutional gift clause is – prohibiting cities from providing non-public incentives to entice economic development. Note to the development community – if you are working on a subsidy type agreement with a city, you better read this one!”

Jordan Rose, Rose Law Group founder and president