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The fundamental reason is that the Institute believes that, in signing its deal with World View to build its headquarters and launch site in Tucson, Pima County violated several laws as well as Arizona’s constitution. We are supposed to be a nation of laws, and thus government officials should not be allowed to violate those laws, even if they have the best of intentions.
I must say that, though I have no doubt that putting World Views space tourism balloon company in Tucson would be financially good for the city and Arizona, allowing elected officials to break the law to make deals with private companies is a very bad way to do it, and will in the end lead to far worse consequences.