Goldwater Institute files suit to cut off CityNorth incentive

Posted on August 08, 2007 | Type: In the News
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A fiscally conservative watchdog group has filed a lawsuit to stop a city of Phoenix sales tax subsidy for a proposed retail and mixed-use development in the far northeast part of the city.

The Goldwater Institute has filed suit in Maricopa County Superior Court asking for an injunction against a $100 million Phoenix subsidy for the CityNorth project.

The CityNorth development is a large retail and mixed-use project being built near the Desert Ridge shopping complex off of the Loop 101 Freeway near the Phoenix-Scottsdale border.

The lawsuit claims the city incentive violates state rules and laws related to gifts to private entities from the government as well as restrictions on special legal treatment for a single corporation.

Goldwater is frequent critic of specialized state and local tax breaks and economic development subsidies.

Lisa Noble, a spokeswoman for the Thomas J. Klutznick Co., the Chicago-based developer of CityNorth, declined comment on the matter saying the real estate firm has not yet received a copy of the complaint.

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