Quote:
Originally Posted by transplant99
How does a private (non-elected) enterprise with a clear agenda, over-rule (by use of threat) elected officials of the public? .
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Not sure what you mean by 'over-rule'. That is not what is happening. GI is a private think-tank dedicated (so they say) to protecting taxpayer rights.
The CoG is spending taxpayer money to assist a private enterprise in acquiring control of a team and an arena. (Actually they're not - they're borrowing money in order to do so, but in order to pay it back they have to spend taxpayer money. Similar, but there is a distinction.)
GI alleges that the parking revenue to which the CoG is entitled is insufficient to repay the debt plus interest.
Taxpayer money will fund the (alleged) deficiency. That could, under AZ law, be considered as 'conferring a gift from a public body to a private body' - something that is illegal under their law.
Definitely oversimplified, but this is little different than any watchdog group coming out and saying that they don't like some part of public policy.
Where it gets sticky is that GI said, during the period that CoG was trying to float the bond issue, that they might sue. That had two apparent effects, at least: it drove the interest rate up and it drove potential purchasers of the bonds away (so the CoG alleges). THAT could be construed as a form of interference, which, though not illegal, may be tortious interference.
(If your neighbour were selling his business to another neighbour and you went to the potential purchaser and said "the seller is a bum and shouldn't be trusted", you'd be in the same kind of position. You've interfered with someone else's business.) Or so CoG thinks apparently. And they believe that they can sue and win on that basis.
I don't know enough about AZ or US law to know whether *either* side could prevail - but it seems likely that GI could do enough to prevent the bond.
Although, in a delicious irony, it may be that the NHL chops the sale price by, oh, say fifty or sixty million, thereby costing each owner a couple of million. That'll make 'em happy with Gary, won't it?