In what must be considered a bold action, the Oro Valley Council voted 6-1, with Mayor Loomis opposed, to direct the Town Manager to curtail all future payments on all existing Economic Development Agreements and to advise those affected as to the action taken.
The motion made by Bill Garner and seconded by Paula Abbott will affect the EDA's to The Hilton El Conquistador (bed tax), Vestar's OV Marketplace, Oracle Crossing, Steam Pump Village and Town Centre.
The decision to put the funds in an escrow account is based on The Goldwater Institute's success in the Turken vs. Gordon lawsuit that was heard by the Az Court of Appeals. The 3 member court voted unanimously that a $97 million subsidy to an out-of state retail developer violated the Az Constitution Gift Clause.
Unless, the court ruling is appealed to the Az Supreme Court and a petition for review is heard, by Feb. 23, 2009, the court decision will stand. Potentially, the Supreme Court may be petitioned but determines not to take any action, allowing the decision to stand.
We congratulate Bill, Paula and the 4 other council members that took this bold action. The alternative would have been to not take action and possibly be in violation of the Az Constitution.
We fully expect this is not the end of this issue.
