Friday, September 25, 2009

Goldwater Institute: CityNorth to Supreme Court 9/30 at 9:30 a.m.

Oral arguments in the CityNorth subsidy case, Turken v. Gordon, will he held in the Arizona Supreme Court next Wednesday, September 30th at 9:30 a.m. We hope you will attend.

WHO: The Goldwater Institute’s Litigation Director Clint Bolick

WHAT: CityNorth subsidy case, Turken v. Gordon, oral arguments before the Arizona Supreme Court

WHEN: Wednesday, September 30 at 9:30 a.m.

WERE: Arizona Supreme Court, 1501 W. Washington Street.

Case background:

In July 2007 the City of Phoenix signed a contract with the Klutznick Company to provide a $97.4 million subsidy for the CityNorth project through sales taxes, despite a constitutional prohibition on corporate welfare in Arizona. The CityNorth project is a $1.8 billion high-end retail development on prime real estate in an affluent part of north Phoenix. On August 8, 2007 the Goldwater Institute filed suit against Phoenix Mayor Phil Gordon over the CityNorth subsidy.

The Goldwater Institute's Scharf-Norton Center for Constitutional Litigation, directed by Clint Bolick, will argue that the CityNorth subsidy violates three clauses within the Arizona constitution: the gift clause, the privileges and immunities clause, and the special law clause.

The Goldwater Institute represents six small business owners in Phoenix; Meyer Turken, owner of Turken Industrial Properties, a small real estate development and management company; Kenneth D. Cheuvront, owner of Cheuvront Wine and Cheese Cafe and Cheuvront Construction; Zul Gilliani, who owns an ice cream shop at Paradise Valley Mall; James Iannuzo, who owns Sign-a-Rama; Kathy Rowe who owns Music Together; and Justin Shafer, owner of Hava Java.

Case Timeline:

· August 8, 2007, case filed with Maricopa Superior County Court

· February 11, 2008, oral arguments on motions for summary judgment in the Turken v. Gordon subsidies case before the Honorable Judge Robert E. Miles

· April 2, 2008, Judge Robert E. Miles rules that $97.4 million sales tax deal with CityNorth creates a public good and does not violate the constitution as a corporate subsidy

· April 4, 2008, Goldwater Institute appeals court ruling

· June 9, 2008, Judge Robert E. Miles heard oral arguments on attorney's fees

· November 25, 2008, Court of Appeals heard oral argument on appeal

· December 23, 2008, Court of Appeals rules the deal with CityNorth does, in fact, violate the gift clause

· September 30, 2009, Hearing in the Arizona Supreme Court at 9:30 a.m., 1501 W. Washington Street

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