Coons v. Hallman

Background
In 2009, the City of Tempe, AZ made a deal with the developer of Sea Life Aquarium, a children's theme park being constructed at Arizona Mills Mall. The agreement provided the developer with tax subsidies and concessions, including rebates to the developer on all construction sales tax up to $900,000; all retail taxes up to $78,000; rebates on planning, engineering, and building safety processing fees up to $70,000; and special assistance from the city on permitting, planning and other regulatory hurdles required of other non-favored developers and business owners.
Lawsuit
The Goldwater Institute filed suit on behalf of Tempe business owner Nick Coons and other local businesses whose taxes would help fund the subsidies, alleging the payments to Sea Life Aquarium violated the Arizona Constitution's Gift Clause and Equal Protection and Special Law Clauses, as well as laws prohibiting all retail sales tax subsidies in Maricopa and Pima Counties, and restrictions on sales tax subsidies throughout the state.
Since the Goldwater Institute filed suit, the City of Tempe amended the agreement with Sea Life Aquarium. Sea Life agreed to give the City a guarantee that it would allow trips to Sea Life for Tempe students for a rate of $7 in exchange for the subsidies. The Goldwater Institute sought to discover whether or not the guarantee constitutes a tangible benefit of equal value as they allege Arizona law requires.
Case Timeline
November 23, 2009: Goldwater Institute asks Maricopa County Superior Court to strike down agreement between City of Tempe and Merlin Entertainment Group.
December 9, 2009: "Order to Show Cause" hearing. 10AM - 10:15AM at Maricopa County Superior Court, 201 W. Jefferson, Judge Eileen Willett's Courtroom 401.
December 11, 2009: City of Tempe hires consultant to determine whether the development would proceed without the City's financial support and whether the City would receive more benefits than the amount of the tax breaks. Tempe also approved a different contract requiring the developer to provide discounts.
See Also
This case is one of several that the Goldwater Institute has undertaken concerned with Arizona's Gift Clause. Additionally, this and the following cases address the issue of how government entities conduct economic development.
Goldwater Institute v. City of Phoenix
Turken v. Gordon (CityNorth)

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