Wednesday, April 2, 2008

Goldwater Institute Will Promptly Appeal CityNorth Subsidy Ruling

Judge Says Corporate Subsidy is Legal

The Goldwater Institute's Scharf-Norton Center for Constitutional Litigation announced it will promptly appeal today's ruling by Maricopa County Superior Court Judge Robert Miles that a $97.4 million taxpayer subsidy for the upscale CityNorth shopping mall is constitutional.

"The ruling creates such a gaping loophole in the Arizona Constitution that you could drive a Mack truck through it," declared litigation director, Clint Bolick, "in this case, a Mack truck filled with taxpayer dollars."

The lawsuit was filed on behalf of six small business owners who do not receive subsidies. It argues that the subsidy violates the Gift Clause of the Arizona Constitution, which forbids corporate subsidies; and the Special Law and Equal Privileges and Immunities clauses, which forbid preferential treatment under the law.

The superior court is only the first step in the judicial process. "The Giants were behind at the half in the Super Bowl, and Randy Bailey lost the opening round of his court battle," declared Bolick, referring to the Bailey's Brake Service eminent domain case in Mesa that he litigated in 2002, which was ultimately victorious. "We remain confident that the courts will vindicate the rights of Arizona taxpayers."

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