Tag: Pima County

World View gets new lease from Pima County

9:54 am

Because the original lease was ruled unconstitutional under the Arizona state constitution, Pima County yesterday approved a new lease for the high altitude balloon company World View.

The original deal had the county build the building. World View would lease it for 20 years, guarantee employment of 400 people, and then buy the facility for $10 at the end of the lease. This was ruled unconstitutional.

Lesher said [the new lease] will give the county more flexibility and a safeguard when it comes to those terms and they’ll be able to base the appraisal price on a percentage of the fair market value. Another big change – the employee benchmark has been significantly lowered. In the original contract, World View was required to hire 400 workers, now that’s down to 125.

Until more details are provided, it is unclear what has changed to make the new deal acceptable to the courts. I suspect the big change is that World View will not have an option to buy for $10.

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Arizona court kills local government’s real estate deal for World View

10:19 am

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.

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Arizona’s Court of Appeals sides with Pima County on space balloon deal

9:48 am

Arizona’s second highest court has agreed with Pima County and approved a deal the county made, without competitive bidding, with the space balloon company World View.

In a unanimous ruling, the three-judge panel acknowledged the purpose of competitive bids is to ensure that the county — and, by extension, the taxpayers — gets the most money for the property. But Judge Peter Eckerstrom, writing for the court, said that does not apply when the real goal is not immediate income but longer-term economic development.

The Goldwater Institute, which brought the suit that claimed that the deal violated the state constitution because the lease was signed without competitive bidding, has said it will appeal to Arizona’s Supreme Court.

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Judge strikes down Tucson/Worldview spaceport deal

8:40 am

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.

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Why the Goldwater Institute sued to block Tucson space deal

9:39 am

Link here.

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.

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Pima county files motion to dismiss World View lawsuit

8:49 am

In the heat of competition: The Arizona county government that made a deal with the space tourism balloon company World View to help them build their launch facilities in Tucson has filed a motion to dismiss the lawsuit by the Goldwater Institute that claims the deal is illegal.

I don’t know if the deal was illegal, but I suspect that even if it was the county will win and the deal will go through. Too much money at stake.

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Arizona county to ban employees who smoke

2:57 pm

Put ’em in concentration camps! Pima County, which includes Tucson, Arizona, is considering banning the employment of any smokers.

Already employed smokers will be charged 30 percent more for their health insurance. The regulations will apply only to government employees.

I say, why waste time with this nonsense. Anyone who smokes is obviously the scum of the Earth, and should be rounded up and sent to camps, either to be re-educated, or to be killed if they can’t reform themselves. America is now an enlightened place, where freedom and individual responsibility have been replaced with the much deeper wisdom of the state!

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