The Arizona Supreme Court yesterday decided to accept the CityNorth appeal and to hear arguments sometime in the fall. This sets the stage for the possibility that the AZSC will give greater clarity to the permissibility under the Arizona Constitution of cities using tax incentives to encourage private development. It is also possible that the court will rule narrowly on the issues in the case to try to restrict the impact on the ruling to only the CityNorth case in question. Most Arizona municipalities will be keenly watching the case for some sort of guidance from the decision.

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