By Laura Gómez | The Republic
Peoria didn’t err in offering up to $2.6 million in subsidies to Huntington University and its landlord, a county judge ruled last week.
Lawyers for the Goldwater Institute, which sued Peoria in 2016, called the funds illegal handouts because Peoria taxpayers are not served by the private university — a violation of the Arizona Constitution’s gift clause. The clause prohibits governments from giving money to private companies without a public purpose proportionate to the funds paid.
Peoria argued residents benefit from the economic development spurred by the university and building renovations. The university opened in a building vacated by a spa in the city’s P83 district, which is a hub of entertainment and dining in Peoria.
The ruling siding with Peoria means the city can continue making payments to the university under a 2015 agreement, set to expire in 2022.
