By Matthew Halloway | AZ Free News
The Goldwater Institute filed a lawsuit against the City of Phoenix seeking to block a proposed sale of downtown city-owned land to Pennrose, LLC. The lawsuit alleges the deal violates the Arizona Constitution’s Gift Clause and a state law governing municipal housing requirements.
The complaint, filed May 26 in Maricopa County Superior Court, challenges the city’s proposed sale of public land located at 1016 North 2nd Street for approximately $1.5 million. The lawsuit alleges the sale price is less than one-third of the property’s fair market value and would benefit a private developer in violation of Article 9, Section 7 of the Arizona Constitution.
According to the complaint, Pennrose proposed what the lawsuit describes as “a blend of LGBTQ+ affirming affordable housing and a tuition-free preschool for under-resourced children,” with the preschool component to be offered by Bezos Academy. The Bezos Academy is a nonprofit organization founded by Jeff Bezos, founder of Amazon.com and owner of The Washington Post.
Court filings describe the property as consisting of three parcels totaling approximately 0.4 acres, or about 17,500 square feet. Goldwater attorneys allege the property was appraised at the direction of the city at approximately $4,812,500 in June 2023.
