GLENDALE, AZ — Two residents are suing the City of Glendale over proposed tax benefits being provided to the VAI Resorts complex being built in the city.
The lawsuit, being supported by Worker Power, claims the benefits violate the gift clause of the Arizona state constitution.
Glendale officials have said they intend to give the resort a 25-year Government Property Lease Excise Tax (GPLET) exemption, which would be worth millions of dollars.
Arizona's gift clause bars state and local governments from giving financial gifts to private entities unless they are for a public purpose and the public benefit is proportional to the value of the financial gift.
In the suit, Worker Power claims the development has "virtually zero direct benefits for residents."
It's not the first time the new VAI Resort has stirred up controversy in Glendale.
The proposed tax benefits were nearly put up for a vote in Glendale earlier this year, but the city council shot that proposal down.
The VAI Resort was originally approved by Glendale leaders in 2020. It was expected to open this year, but that has since been pushed back.
