Another Victory For Goldwater Institute On Behalf Of The People

We are glad the the Court agreed with The Goldwater Institute in its requests concerning a city of Phoenix "giveaway" to a large hotel chain.
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For Immediate Release
Contact: Dan Guerin
February 10,2010
(602) 462-5000 x235


Judge Rules City of Phoenix Must Turn Over Public Records to Goldwater Institute
City originally refused to hand over records related to the Wyndham Hotel deal

PHOENIX--At a Superior Court hearing, Maricopa County Judge Kenneth Mangum decided the City of Phoenix must turn over public records related to a deal it is making with the Wyndham Hotel by February 19, 2010. The City was ordered to turn over some documents to the Goldwater Institute and other documents to Judge Mangum for his review.

In December 2009, news reports stated that the City was offering a sizeable tax break to the Wyndham Hotel through a sales-lease back arrangement. Concerned that unconstitutional tax breaks could be given to the hotel, the Goldwater Institute requested public records to see the development agreement and other related public documents on January 5, 2010. The City refused, saying no documents would be made public until a development agreement has been signed.

"The City of Phoenix admitted in court that it has documents that it can turn over to the public now, and that it is willing to do that," said Carrie Ann Sitren, an attorney with the Goldwater Institute's Scharf-Norton Center for Constitutional Litigation. "It is disappointing that it took a lawsuit and the Court's valuable time to have them comply."

The City said it was concerned some of the documents could affect its negotiations with the Wyndham Hotel. Because of this, Judge Mangum decided the City must turn those specific documents over to him for a private inspection. Judge Mangum will then decide if those particular documents should be released to the public.

Read more about this and other Goldwater activities to protect individual rights and keep government within its constitutional limits at www.goldwaterinstitute.org/litigation. The Goldwater Institute is an independent government watchdog supported by people who are committed to expanding free enterprise and liberty.

Oro Valley Financial Woes --A "Miniture Phoenix" With Food Tax Coming???

Please read Dr. Byron Slomach's column from The Goldwater Institute. Does it sound a lot like Oro Valley's recent history of financial irresponsibility under Mayor Loomis?


http://campaign.constantcontact.com/render?v=0011-u4wRWTE7TQUNuwD0BlM-sgSBnrqnIllYdmW01DKQV4DDCTTi_liJOvozBNfQOeOK9toDxpmz9d8LhYm1HC1bG0ANtRp2r8uDxjfStkvzQVfbOYF5eQ02RfniAyGHtU1_VqBumtXU-lZ5p8AWbvEvM6o60bo6Xm0pLVqqS__MKYoZqhq5rU_A%3D%3D

Clint Bolick, Goldwater Institute Writes About "Gift Clause" & The Az Constitution

Following this past Monday's ruling by the Az Supreme Court, Clint Bolick reflects on the decision.



Gift Clause in Arizona Constitution has meaning again

by Clint Bolick


The Goldwater Institute's constitutional challenge to the $97.4 million CityNorth subsidy was the signature test for an untried idea: a litigation center dedicated to vindicating largely unused protections of individual rights and written restraints on government in our state constitution. Monday's decision by the Arizona Supreme Court in Turken v. Gordon illustrates the potential for such endeavors.

gavel b&wBefore we filed the case, cities across Arizona were engaged in subsidy wars to attract businesses that might contribute to their sales-tax coffers. Savvy developers peddled grandiose schemes, playing one city against another. Small businesses, which are the engine of our economy yet never receive special benefits, were forced to help subsidize much bigger competitors.

No one had the resources to take on the powerful combination of government and special interests. Even worse, decades of court precedents had diluted the Gift Clause--which categorically prohibits gifts of taxpayer funds "by subsidy or otherwise"--almost to the point of nonexistence. So when Phoenix gave a massive subsidy to a Chicago developer to build a luxury shopping mall, it seemed like a case tailor-made for litigation.

Things looked bleak when the trial court upheld the subsidy, crediting the developer's promises of massive tax revenues and other benefits to the City. But the Arizona Court of Appeals, meticulously applying the original intent of the Gift Clause, struck down the deal.

The Supreme Court could have returned matters to business as usual. It did allow the CityNorth deal to proceed, pointing to the confusion the Court felt its prior precedents had sown. And it deferred to the City's judgment that the CityNorth deal served a legitimate "public purpose." But the Court held that promises of "indirect" economic benefits--such as jobs that may result from a proposed project--are insufficient consideration for tax-dollar giveaways. From now on, economic development agreements must produce tangible benefits and fair-market value for taxpayers. That ought to curb the worst excesses, and we'll be on the watch to make sure that government behaves.

In the meantime, score one for the little guy--and for the idea that with the right cases brought to them, courts will hold governments to their constitutional boundaries.

Clint Bolick is director of the Goldwater Institute Scharf-Norton Center for Constitutional Litigation.

Phoenix Business Journal Reports On Supreme Court Ruling On CityNorth

The Phoenix Business Journal reports on Supreme Court ruling on CityNorth.

http://www.bizjournals.com/phoenix/stories/2010/01/25/daily11.html

Goldwater Institute Press Release--Re: Az Supreme Court Ruling On CityNorth

Following is the Goldwater Institute press release on the Supreme Court ruling, and what's next. (See our previous posting on the decision.)

http://www.goldwaterinstitute.org/article/4330

We certainly appreciate the efforts of Clint Bolick, Carrie Ann Sitren and the Goldwater Institute's team headed by President & CEO Darcy Olsen in their fight for the people and small business owners of Arizona.

Az Supreme Court Vacats Appeals Court Decision On CityNorth Subsidy

The Supreme Court of Arizona basically upheld the Superior Court's ruling on the Turken. vs. Gordon subsidy case, and vacated the Appeal's Court ruling.

The ramifications of the decision are still to be determined, by suffice to say, it was a loss for the small business owners and the people of Arizona, including, of course, those of us in Oro Valley.

In any case, in its 29 page decision, the court made it clear that their decision would only be applicable to transactions made after this ruling.


Please stay tuned to see a soon to be released press release from The Goldwater Institute.

Here is the link to the Supreme Court ruling.
http://www.supreme.state.az.us/opin/pdf2010/CV090042PR.pdf

Az Supreme Court To Announce CityNorth Decision 10:00 AM Jan 25.--Vestar Sues Oro Valley On Their "Giveaway"

The Az Supreme Court CityNorth decision will be announced tomorrow morning at 10:00AM. We will all know whether the court will uphold the Appellate Court ruling that basically said the Gift Clause violates the Arizona Constitution.

The Goldwater Institute filed the law suit against Phoenix Mayor Phil Gordon after he opted to give Klutznick Co. an out of state developer $97.4 million of future sales tax revenue for what may have been some municipal parking spots in Phoenix's CityNorth development.

We in Oro Valley know all about these giveaways, as under Mayor Loomis's inept leadership, we committed to give a few retail developers millions of our sales tax revenue.

The Vestar lawsuit reported in today's Az Star is the 2nd suit. It follows the one by the Oracle Crossing developer filed in Dec. 2008.

Read the Star article here.
http://www.azstarnet.com/business/local/article_62ab7a67-c29d-500b-88c0-d201145d77cc.html

No Surprise--- Oracle Crossing Owners Sue Oro Valley Over Subsidy Funds

As reported in The Explorer, the owners of the Oracle Crossing Shopping Center have sued Oro Valley as a result of the town holding sales tax "kick-back" money in an escrow account pending the outcome of the Supreme Court ruling on the Turken vs. Gordon lawsuit brought on by The Goldwater Institute.

Hopefully, after hearing the case on Sept 30, 2009, the Court will rule soon on this critical issue. We can only hope the 5 Justices will uphold the Az Constitution which forbids governments from offering special concessions that favor one business while not providing discernible benefits to the community.


Here's The Explorer article.
http://www.explorernews.com/articles/2010/01/13/news/doc4b4d019b7728c305454741.txt

CityNorth----Funny or Sad? We Say, "It's Sad For Phoenix Citizens"

While we anxiously await the Supreme Court ruling on The Goldwater Institute lawsuit against Phx Mayor Phil Gordon, read what is going on---courtesy of Az Repulic reporter Laurie Roberts.
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Laurie Roberts' Columns & Blog
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I almost feel sorry for CityNorth. Almost.

I find myself feeling almost sorry for the developers of CityNorth. First, they find themselves in the cross hairs of the Goldwater Institute for cooking up a deal with Phil Gordon to siphon away $100 million in future sales tax revenues in exchange for building a shopping center in northeast Phoenix.

Then, they open the first phase of their development – a smattering of shops, restaurants and some high-dollar apartments – in the middle of the biggest economic downturn of most of our lives. Then Bloomies et al pulled out of an eventual second phase and last week, CityNorth's lender filed to foreclose, hoping to recoup a portion of its $290 million loan.

Meanwhile, the city continues to pay the law firm of Fennemore Craig up to $520 an hour to defend the city’s plan to hand over $100 million in future tax revenues, should CityNorth ever build its vaunted shopping mall. As of September, the city had paid more than $600,000 in legal fees to defend against the Goldwater lawsuit.

We're still waiting for the Arizona Supreme Court to decide whether to uphold the Court of Appeal’s decision that the deal was unconstitutional. In the meantime, I’m wondering if Phoenix residents can foreclose on the city to get their $600k back...

Oro Valley Top Stories For 2009

There were dozens of issues (including our budget shortfall) that had an impact on those of us who reside in Oro Valley. From our perspective, here's what we believe were the ten top stories concerning the politics of Oro Valley during the 2009.

We'd like to hear what you think: Whether you agree----or not.

10) Oro Valley Council Votes To Stop All Retail Giveaways.

In an action, we believe was a long time in coming, the Council voted on January 21, 6-1 to stop all retail giveaways. Who was the only "No" vote? Mayor Paul Loomis.


9) Oro Valley Council Votes To Continue Utility Tax

The Utility Tax on our gas, water and electric bills that was passed by the previous council was due to expire on April 1. This tax on water is used to pay for Police. Go figure. Anyway, the tax got extended. Lead by Mayor Paul Loomis, the Council voted on March 4 to continue
this tax.

8) Another Water Rate Hike

Although the Oro Valley Water Director indicated the town didn't need yet another rate hike, he saw fit to ask the Council for an increase at the November 18 meeting. Sadly, only Bill Garner and Salette Latas voted "no," and as such, we will see higher water bills starting in 2010.

7) The Arizona Supreme Court Heard CityNorth Subsidy Case

On September 30, the Arizaon Supreme Court heard oral arguments on the suit brought by The Goldwater Institute contending that the city of Phoenix violated the Arizoan Constitution Gift Clause by offering an out-of-state developer in excess of $90 million in future sales tax revenue for a retail development. We all anxiously await the court's decision which should have an impact on prior Oro Valley "giveaways."

6) Oro Valley Sign Code

The Oro Valley sign code became a very contentious issue pitting, for the most part, the business community and real estate agents against the scientific community and a vast majority of homeowners. The two main points of contention are the lit storefront signs from "dusk to dawn," and the "open house" signs displayed by real estate agents. Hopefully, the council will come up with a compromise, (if that's possible) in 2010.

5) The "Police Issue"

Although you'd be hard pressed to find anyone who is not happy about the safe community we all call home, there are many who don't like the tactics of the Oro Valley Police Unions. Many of us believe the police look out more for their own than they do for the people of the community. Why do we say that? You need look no further than the fact the Police refused to consider a layoff of even one of their own while every other department in town was concerned about our budget constraints.

Too bad Mayor Loomis got his way and "caved in" to the cop's demands.

4) The Library Issue--Double Taxation.

Certainly the "library" was another of those contentious issues. On one side, for the most part were the "friends of library" who had every right to have their voices heard, as they gave so much to the library even being here. On the other side, were many of the taxpayers of Oro Valley. Most of us appreciate the value of having our "own library" but don't like the fact that we incur double taxes in doing so. The issue is: Should the Oro Valley Library remain autonomous and should we be obligated pay double taxes; or should the Library cede control to Pima County, like the other 27 branches in Pima County and save us hundreds of thousands of dollars?

The Pima County Board of Supervisors, by a 3-2 vote, denied Oro Valley's request for more funding for the Oro Valley Library. In addition, the Board also voted to oppose any attempt by Oro Valley to change State Law so the we can have our own library.

3) Paula Abbott Resigns From Council

On November 9, Ms. Abbott abruptly resigned from the Oro Valley Council, "effective immediately." We believe Abbott's action came seven weeks too late, as she joined with Loomis, Carter and Kunisch on September 23 to force our Town Manager out after his eighteen years of dedicated service.

2) Mike Zinkin Runs For Mayor Of Oro Valley.

We couldn't have been more pleased to learn that Mike Zinkin decided to run for Mayor of Oro Valley. Mike brings so many things to the table. His work experience as an Air Traffic Controller certainly allows him to work under the most stressful conditions. His experience on the Development Review Board, including two years as chair gives him the experience to know how to run a meeting. Most important is Mike's demeanor. He knows how to treat people and will work closely with the council & staff. Additionally, Mike appreciates that the people of Oro Valley are its main asset, and he will treat us all with dignity and respect. We are proud to support Mike Zinkin for Mayor of Oro Valley.

1) David Andrews Terminated As Town Manager After 18 Years Of Dedicated Service.

We believe unequivocally, that the vote of Mayor Loomis, Vice Mayor Carter, Council Person Al Kunisch, and the recently resigned Council Person Paula Abbott was the most egregious action ever taken by any council in the history of Oro Valley. We contend that Loomis orchestrated the removal of Mr. Andrews and that he and the other three violated the Open Meeting Law of Arizona by conspiring PRIOR TO the September 23 Special Session in having David lose his job. The final chapter of this despicable action is yet to be written. For one thing, Loomis does NOT deserve the vote of any fair minded person. So let's remind Paul Loomis how egregious his actions have been by voting him out when the ballots hit the mailbox in February.

Goldwater Institute: "Reform Crucial To End Government Favoritism"

Nick Dranias is an attorney and director of constitutional policy at the Goldwater Institute. Please take a few moments to read Nick's Op Ed to The Az Republic as it concerns retail subsidies. You'll note Nick refers to Oro Valley and its giveaways.


http://www.azcentral.com/arizonarepublic/opinions/articles/2009/09/14/20090914dranias15.html

Interesting Survey Results From Az High School Students

We thought our readers might find The Goldwater Institute Survey of Public & Private High School students of some interest.
Art
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For Immediate Release Contact: Becky Bracken
September 9, 2009 (602) 462-5000 x233


Private School Students More Tolerant and Politically Accepting
Survey shows students in private school are more likely respect diversity

Phoenix--Are Arizona's high school students better served by private or public schools? We asked those who know best: the students.


The Goldwater Institute surveyed students in public and private high schools about the academic environment and racial and political tolerance in their schools. The results are being released in two reports. The first, "Tough Crowd: Arizona High School Student School Evaluation" measured students' satisfaction with their schools and the schools' academic environments. The second, "Better Citizens, Lower Cost: Comparing Scholarship Tax Credit Students to Public School Students" examines student perceptions about civic tolerance, diversity and volunteerism within their schools.


The survey shows that by a four-to-one margin, students in private schools report a greater sense of civic responsibility, look forward to going to school, volunteer in their community and value diversity over their public school counterparts.


Survey responses include:


"My school teaches me to value, respect and tolerate differences in others."
76 percent of students in private school agree with that statement, compared with 51 percent of students in public school.


"My school treats all students with respect regardless of race."
64 percent of students in private high school agree with that statement, compared with 40 percent of public school students.


"My school has high expectations of me."
71 percent of students in private high school agree with that statement, compared with 48 percent of students in public high school.


"I look forward to going to school."
Only 66 percent of students in private high school agree with that statement, compared to 47 percent of students in public school.


"This survey punches semi-truck sized holes in the old arguments against private school education, and in turn, the value of the tuition tax credit program," said Goldwater Institute Vice President of Research Matthew Ladner, Ph.D. "Students are in the best position to tell us what's really going on in the classroom, and the results show students in private schools are getting a better education and adopting better civic values, all at a lower price tag to the taxpayer."

The Goldwater Institute is an independent government watchdog supported by people who are committed to expanding free enterprise and liberty.

Darcy Olsen, Goldwater Institute President & CEO On "Arizona Illustrated"

Bill Buckmaster, host of “Arizona Illustrated” interviewed Goldwater Institute president Darcy Olsen about how Arizona can close its structural deficit and improve its education and health care delivery systems.

We believe our readers will want to watch this seven minute interview.

http://tv.azpm.org/kuat/segments/2009/8/13/kuat-darcy-olsen/.

CityNorth Upcoming Supreme Court Hearing: Two Points Of View

The July 29 Az Republic has an article by Phoenix City Manager Frank Fairbanks that extols the virtues of the CityNorth subsidy.

http://www.azcentral.com/arizonarepublic/opinions/articles/2009/07/29/20090729wedlets292.html

On July 31, reporter Bob Robb writes,"A sales-tax rebate to reimburse a private developer for a parking garage that will serve primarily the private patrons of the developer's private tenants is a clear violation of the constitutional provision."

"This state Supreme Court actually has an easy choice. It can affirm that, as the Court of Appeals unanimously did. Or it can pretend that the state Constitution says something it doesn't say."

http://localsearch.azcentral.com/sp?catId=&aff=1100&searchkeyword=&searchca

The case will be heard in Phoenix on Sept. 30 @ 9:30AM.

Hopefully, the Supreme Court will do the right thing and uphold the Az Constitution, agreeing with The Goldwater Institute that brought the case to this point.

CityNorth Oral Arguments Scheduled For Az Supreme Court On Sept. 30 @ 11:00 AM

The Court has set a date to hear oral arguments on the $97.4 million subsidy to the developer of the CityNorth retail mall in Phoenix.

The date is SEPT. 30 @ 11:00 AM. at The Supreme Court in Phoenix.

Most of us know the ruling on this case may have major implications on a number of Economic Development Agreements in Oro Valley.

The Goldwater Institute Speaks Out On "Supermajority Rule"

The Goldwater Institute Daily
July 7, 2009


In Defense of Supermajority Rule
By Nick Dranias

There was a time when conservatives stood for smaller government. They fought taxes and believed in spending only on core government functions. Then we saw the era of "read my lips" and "compassionate conservatism." Politicians of all stripes decided that voters wanted carefree spending--and they delivered. That's what generated the spectacle unfolding in California. And during Arizona's go-go real estate boom, it empowered a Democratic Governor and a Republican Legislature to surrender the state's fiscal health to reckless spending.


That's why Arizonans should be grateful that our state's Constitution requires two-thirds of the Legislature to approve a tax increase--a "supermajority" rather than a simple majority. So far the supermajority rule has helped some legislators resist the ridiculous notion of raising taxes in a depressed economy. But more deeply, the provision illustrates the crucial importance of restraining simple majority rule.


The problem with simple majority rule is not just the threat of mob action violating individual rights, but also the fact that the 2-point difference between 51 percent and 49 percent can shift in the blink of an eye. A simple majority is just not a good enough measure of consensus, much less the consent of the people. For this reason, especially when it comes to fundamental public policy, something more substantial than majority rule is required.


Taxes are among our most fundamental and critical public policies. Our nation was born of revolution because of taxes imposed without the consent of the people. Let's hope the Arizona Constitution's supermajority rule helps to restrain Arizona from continuing to engage in reckless spending.

Nick Dranias holds the Goldwater Institute Clarence J. and Katherine P. Duncan chair for constitutional government and is the director of the Institute's Dorothy D. and Joseph A. Moller Center for Constitutional Government.

Goldwater Institute's Advice To The State Is Appropriate for Oro Valley

We usually avoid state or national issues as we have enough of our own issues in Oro Valley. However, regardless of your political leanings, we thought the following statement by Goldwater Institute chairman Tom Patterson was worth noting.

One sentence stood out----"The only solution to a spending problem is to spend less."

As for the Oro Valley Council, it's too bad that only Salette Latas, Bill Garner & Barry Gillaspie seem to understand that credo.
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The Goldwater Institute Daily
June 16,2009

State Should Spend Less On Taxes
By Tom Patterson

Fiscal conservatives in Arizona are in shock. After six years of watching Gov. Janet Napolitano's fiscal mismanagement drive our state to the brink of disaster, there was hope for relief earlier this year.

Our new governor, the conservative Jan Brewer, would have the courage and good sense to set us back on course to recovery.

It hasn't worked out that way. Right out of the box, she opined that she might possibly consider a tax increase to balance the budget if all other options had been exhausted. When politicians talk like that, it usually means hold on to your wallet, and this time was no exception.

Soon after, she included a non-specified $1 billion tax hike in her budget reform proposal. "Maturing" rapidly, in the eyes of the mainstream local press, she then threatened a veto for any budget that didn't include new taxes. Now her supporters, with her approval, have threatened a $225,000 media campaign against fellow Republicans who refuse to inflict more taxes on Arizonans during a recession.

Arizona lost 170,000 jobs from February 2008 to February 2009, the second-highest job loss in the nation. During that same time period, government added 4,500 net jobs. With families and businesses across the state cutting back and coping the best they can, sending more of our resources to the growing government sector is just nuts.

Admittedly, Brewer is in a tough spot trying to remediate the consequences of Napolitano's reckless spending. But her budget proposal doesn't do anything to solve our predicament. Under her plan, state revenues, currently in free-fall, would have to grow 40 percent in two years to have a balanced budget, after the temporary tax and stimulus funds were depleted. That's not going to happen.

The only solution to a spending problem is to spend less. That's not pleasant, but the alternative is worse. Principled, responsible leadership is more than kicking the can down the road. Just ask California.

Tom Patterson is chairman of the Goldwater Institute and a former state senator.

A Big "Thank You" To Town Attorney Tobin Rosen For His Letter Re: "Amicus Brief"

Probably not too many of us are familiar with our Town Attorney Tobin Rosen. Most of us that know Mr. Rosen know him from council meetings, where, when necessary, he gives his legal opinion when asked; usually on an issue that needs legal clarification.

However, Mr. Rosen does a lot more than that on behalf of our community.

I want to share a letter Mr. Rosen sent to the Town Attorney in Scottsdale on June 4. The letter is in reference to Turken v. Gordon Supreme Court Case No. CV-09-0042-PR.

Mr. Rosen writes:

Yesterday, the Oro Valley Town Council authorized and directed me as Town Attorney of Oro Valley to sign on to the amicus curiae brief that the City of Scottsdale is preparing to file in the Arizona Supreme Court in support of the Court of Appeals Decision in Turken v. Gordon.

Please let me know if I can be of any assistance to you in the preparation of editing a brief. Given the admittedly tight timeline for preparing and filing the brief, I will accommodate you and your office in any way I possibly can. Please feel free to contact me if you have any questions. Thank you in advance for allowing and assisting the Town of Oro Valley to participate with you in this important matter.

Very truly yours,

Tobin Rosen
Town Attorney


I only have two comments.

1) Mr. Rosen was directed by the OV Council to write the letter. Nobody had to tell Mr. Rosen to
show such grace and class in his choice of words.

2) It would have been nice if Mr. Rosen could have said, the Oro Valley Town Council unanimously authorized and directed him. Unfortunately Mayor Loomis & Councilman Kunisch voted "no."
Their terms expire in 2010. Inasmuch as they refused to support our community, please try to remember this as another reason why they don't deserve our support in any future election.

Oro Valley Council Agrees To Sign On To Support Goldwater Institute In Supreme Court

We had hoped that the full council would have signed on to be "a friend of the court" in the upcoming Supreme Court case of Turken vs. Gordon (CityNorth case.)

That didn't happen. It was a 5-2 vote with Mayor Loomis & Council Member Kunisch evidently thinking this was not in the best interest of Oro Valley.

Too bad.

Hopefully, Council Unanimously Will Approve Amicus Brief Backing Goldwater Institute Re: Turken vs. Gordon Case

Thanks to Salette & Bill for adding Resolution No. (R)09-30 to the Wed June 3 Council Agenda as a Consent Agenda item.

Thanks to Town Attorney Tobin Rosen & Town Manger David Andrews for signing off on this item.

We can only hope that the full Oro Valley Council will agree to approve this item unanimously.

H.	* Resolution No. (R)09-30 Authorizing the Town Attorney to sign on to the amicus curiae brief to be filed by City of Scottsdale before the Arizona Supreme Court in support of the Court of Appeals opinion in Turken v. Gordon, Arizona Supreme Court Case CV-09-0042-PR

Click here for Item H