Schires v. Carlat
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The Supreme Court held that the City of Peoria violated Ariz. Const. art. IX, section 7, the Gift Clause, by spending public funds to induce a private university to open a branch campus in Peoria.
In 2015, Huntington University, Inc. (HU), an accredited private institution based in Indiana, and the City entered into an agreement for HU to open a campus in Peoria. In return, the City promised to pay HU almost $2 million for developing the campus and programs. Plaintiffs, Peoria taxpayers, brought this lawsuit asserting that the City's payments to HU violated the Gift Clause. The trial court granted summary judgment for the City, and the court of appeals affirmed. The Supreme Court reversed and remanded with directions to enter summary judgment in favor of Plaintiffs, holding that the City's payments to HU violated the Gift Clause.
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