Case background:

In July 2007 the City of Phoenix signed a contract with the Klutznick Company to provide a $97.4 million subsidy for their CityNorth project through sales taxes, despite a constitutional prohibition on corporate welfare within 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 City North 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 Goldwater Institute will represent 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.

View press release below:

• City of Phoenix and CityNorth Lose Motions for Attorney’s Fees
• Goldwater Institute Will Promptly Appeal CityNorth Subsidy Ruling
• "City of Phoenix Spends $10,000 a Week on Attorneys to Defend CityNorth Subsidy"
• "Goldwater Institute sues city of Phoenix over $100 million subsidy"

Read more about corporate welfare and the Arizona constitution:

• "Deal Breaker: A Critique of Phoenix's Subsidy of CityNorth"
• "Regifting the Gift Clause: How the Arizona Constitution Can End Corporate subsidies"
• "Problematic Parking: Phoenix proposes to pay dearly for an unlikely public good”
• "Arizona's constitution prohibits corporate subsidies"

The Stakes:

• The elimination of corporate welfare in Arizona
• An equitable business environment in Arizona that does not favor the politically connected over small business owners.
• Greater economic efficiency.
• A realignment of city priorities from the creation of high-end retail stores to police and fire protection.
  

Case Timeline:

• August 8, 2007, case filed with Maricopa Superior County Court.
• February 11, 2008, 10:30 a.m., oral argument on motions for summary judgment in the Turken v. Gordon subsidies case before the Honorable Judge Robert E. Miles at Maricopa County Superior Court, Old Courthouse, 125 W. Washington, Courtroom 303, Phoenix, AZ 85003.  Open to the public.
• April 2, 2008, Judge Robert E. Miles rules that $97.2 million sales tax deal with CityNorth creates a public good and does not violate the constitution as a corporate subsidy.  Goldwater Institute promises to appeal.
• April 4, 2008, Goldwater Institute appeals court ruling.
• June 9, 2008, Judge Robert E. Miles will hear oral arguments on attorney's fees. Old Courthouse, 125 W. Washington St., Courtroom 303

Case Documents:

• NEW: Appeal of Summary Judgement
• NEW: Declaration of Clint Bolick
• NEW: Response to Attorneys' Fees
• NEW: Motion for Attorneys' Fees
• NEW: Amicus Brief on Attorneys' Fees
• Judge Miles Ruling
• Reply in Support of Motion for Summary Judgment
• Motion for Summary Judgement
• NFIB Amicus Brief
• CityNorth Retail Economic Analysis
• Review of CityNorth Project
• Turken v. Gordon Complaint

Media Coverage:

• "The $687,000 question"
  Sarah Fenske, Phoenix New Times, May 15, 2008.
• "Sore winners in CityNorth case"
  Bob Robb, Arizona Republic, May 2, 2008.
• "Foes confident CityNorth deal can be blocked"
  Arizona Republic, April 8, 2008.
• "Arizona's Booster Socialism"
  George Will, Washington Post, March 16, 2008.
• "Goldwater Institute’s Suit Against the City of Phoenix - Update!"
  Lindsay Boyd, Townhall.com, March 5, 2008.
• "The Goldwater Institute takes Phoenix to court"
  KPNX Channel 12, February 11, 2008.
• "Judge hears arguments in CityNorth case"
  Michael Clancy, Arizona Republic, February 11, 2008.
• "Subsidy 'gift' squanders taxpayer money"
  Laurie Roberts, Arizona Republic, January 9, 2008.
• "Mayor grapples with Goldwater Institute over CityNorth"
  Mike Sunnucks, Phoenix Business Journal, January 9, 2008.
• "Benefits of CityNorth were inflated, 2 studies say"
  Michael Clancy, Arizona Republic, November 14, 2007.
• "OV tax-sharing deals come up short"
  Danielle Sottosanti, Arizona Daily Star, November 1, 2007.
• "Corporate subsidies in Arizona"
  Christopher Conover, KUAZ Arizona Spotlight, September 7, 2007.
• "Revolting Development"
  Sarah Fenske, The New Times, September 6, 2007.
• "OV council says no to retail incentives"
  Patrick McNamara, Explorer, August 22, 2007.
• "Matt Ladner discusses the Goldwater Institute's legal cases on Inside Track" KVOI Inside Track, August 18, 2007.
• "Car dealers forgo $900k in city subsidies"
  Brian Powell, East Valley Tribune, August 17, 2007.
• "Tax incentive policies scream for change"
  Editorial, Arizona Republic, August 16, 2007.
• "Constitution should ease taxing practice of playing favorites"
  Bob Robb, Arizona Republic, August 14, 2007.
• "Group may join opponents of Waveyard deal"
  Jason Massad, East Valley Tribune, August 14, 2007.
• "Darcy Olsen discusses the CityNorth subsidy and the Goldwater Institute lawsuit on Sunday Morning Square Off" 
  Sunday Square Off,  Channel 12, August 12, 2007.
• "CityNorth revives subsidy debate"
  Michael Clancy, Arizona Republic, August 12, 2007.
• "Court needs to strike CityNorth Agreement"
  Bob Robb, Arizona Republic, August 10, 2007.
• "Goldwater Institute Sues the City of Phoenix"
  Lindsay Boyd, Townhall.com, August 10, 2007.
• "City North subsidy challenged" 
  Michael Clancy, Arizona Republic, August 9, 2007.
• "Group files suit against Phoenix for $100M subsidy"
  Ari Cohn, East Valley Tribune, August 9, 2007.
• "Goldwater Institute sues Phoenix over CityNorth"
  Michael Clancy, Arizona Republic, August 8, 2007.
• "Senator, others sue to stop tax subsidies"
  Jim Small, Arizona Capitol Times, August 8, 2007
• "Goldwater Institute files suit to cut off CityNorth incentive"
  Mike Sunnucks, Phoenix Business Journal, August 8, 2007.
• "Darcy Olsen debates corporate subsidies and municipal sales tax incentive bill on KAET Horizon" Darcy Olsen, KAET Horizon, July 31, 2007.
• "A competition we all lose"
  Clint Bolick, Inside Tuscon Business, June 4, 2007.
• "Taxpayer-Funded Goodies on the Rise"
  Clint Bolick, North Scottsdale Times, June 1, 2007.
• "Giveaways to corporations stick taxpayers with hefty tab"
  Darcy Olsen, East Valley Tribune, May 20, 2007.
• "Phoenix's deal with developer a disservice to taxpayers"
  Darcy Olsen, Arizona Republic, April 29, 2007.
• "Darcy Olsen on 'Here and Now' discusses taxes and subsidies"
  Darcy Olsen, KJZZ, April 18, 2007.

How can I help?

• The stakes are high, help build positive press. Write letters to the editor for your local newspaper and let them know how you feel.
• The Goldwater Institute's Scharf-Norton Constitutional Litigation Center is able to defend your constitutional freedom because of the generous donations of private individuals.  R. Evan Scharf and John R. Norton III have arranged for a $1 million challenge grant to establish and fund the Goldwater Institute Scharf-Norton Center for Constitutional Litigation.  To donate to the litigation center or become a member of the Goldwater Institute, please call Jenn Bryson at (602) 462-5000.

Learn more about the Goldwater Institute’s Scharf-Norton Center for Constitutional Litigation.