Scottsdale illegally subsidized golf course, residents’ suit says

McDowell Mountain Golf Club clubhouse, which is the subject of a lawsuit against the city of Scottsdale.

By Michael Clancy | The Arizona Republic

Two Scottsdale residents filed suit against City Hall last week, claiming an agreement with a golf course comes with an illegal subsidy.

The suit pits residents Mark Stuart and John Washington against Mayor Jim Lane, the City Council and city manager.

At issue is a city resolution passed in June 2012 that Stuart and Washington argue “significantly changed the business risk and the financial relationships” between the city and the McDowell Mountain Golf Club operators.

White Buffalo Golf LLC took over operations in April 2011, paying $2.2 million.

When it came time to upgrade, White Buffalo approached the city for more favorable terms than previous operators received, the suit claims.

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July 5, 2013

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