(Editor’s note: The city of Tempe provided the following commentary relating to an announcement from Arizona Attorney General Mark Brnovich regarding a lawsuit over a method used by Tempe to help stimulate economic development.)
Wrangler News
The Arizona Attorney General’s Office has decided not to proceed with the lawsuit it sent to the Arizona Supreme Court, which was intended to determine whether the City of Tempe’s use of a particular development incentive has been legal. As a result, both parties have signed an agreement to settle the matter.
None of Tempe’s existing leases that employed the Government Property Lease Excise Tax (GPLET) tool will be impacted or need to be redone.
Tempe’s prior use of the tool is interpreted by the city to have been done legally, as the Attorney General’s Office would not otherwise have allowed the past development deals to continue as part of the settlement, said Tempe City Attorney Judi Baumann.
