Arizona court kills local government’s real estate deal for World View
The Arizona court of appeals last month ruled that a land deal between Pima County and the high altitude balloon company World View was unconstitutional, and could not go forward.
Per the agreement, the county would fund the construction of facilities, including a 135,000-square-foot manufacturing facility, with office spaces and a launch pad, on property it already owned. World View would then lease the property from the county for 20 years. In return, the company would hire more than 400 employees, with an average salary of over $55,000, and spend $32.3 million on equipment.
Twenty years of lease payments were expected to total around $14 million, estimated to be the property’s value at that time. World View would then have the option to buy the facility for $10.
Six years ago the Goldwater Institute sued, saying this deal was illegal according to the state’s constitution. Last month the court agreed, killing the deal.
Since World View remains in operation in these facilities, Pima County will have to renegotiate at market rates. How that will effect the company itself, which now hopes to begin flying near-space tourist flights by 2024, charging $50K per person, remains unknown.
The Arizona court of appeals last month ruled that a land deal between Pima County and the high altitude balloon company World View was unconstitutional, and could not go forward.
Per the agreement, the county would fund the construction of facilities, including a 135,000-square-foot manufacturing facility, with office spaces and a launch pad, on property it already owned. World View would then lease the property from the county for 20 years. In return, the company would hire more than 400 employees, with an average salary of over $55,000, and spend $32.3 million on equipment.
Twenty years of lease payments were expected to total around $14 million, estimated to be the property’s value at that time. World View would then have the option to buy the facility for $10.
Six years ago the Goldwater Institute sued, saying this deal was illegal according to the state’s constitution. Last month the court agreed, killing the deal.
Since World View remains in operation in these facilities, Pima County will have to renegotiate at market rates. How that will effect the company itself, which now hopes to begin flying near-space tourist flights by 2024, charging $50K per person, remains unknown.