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A deal between Pima County in Tucson Arizona and the space tourism balloon company World View has been struck down.
The Tucson judge sided with the libertarian Goldwater group, which argued Pima County ran afoul of state rules governing subsidies and incentives to businesses. “Judge Woods’ ruling protects Pima County taxpayers from having to foot the bill for World View’s untested business model,” said Jim Manley, senior attorney at the Goldwater Institute. “Instead of relying on a sweetheart deal from taxpayers, World View will need to pay market rates to lease its building, just like every other business in Pima County.”
Goldwater attorneys didn’t like that Pima County approved the deal without a popular ballot measure and that the deal was done without an appraisal. Goldwater also argued the lease deal was for less than market rates for a custom building. “The county is free to renegotiate the lease,” said Manley, “but only after they appraise the building, hold a public auction, and lease the building to the highest bidder. All of that will protect taxpayers from illegally subsidizing a private business.”
As much as I want this business to thrive, I think the Goldwater Institute was right. Pima County violated numerous laws and even some parts of the state constitution putting together this deal. Even if there was no corruption here, it opened the door to future backroom corruption if the deal was allowed. Now, I expect World View and the county will have to renegotiate.