Opinion by Kim Demarco
So, back to the World View saga.
As some of you may remember I wrote an editorial on the World View, Inc. contracts in January of this year when the Pima County Majority Board of Supervisors approved these contracts. I’m not one to say I was right, but I was right.
The Majority Board of Supervisors approved contracts that would spend more than $15 million in tax payer dollars on a privately owned company, World View, Inc. Then they approved Certificates of Participation (mortgages on county owned property) to fund this misguided project.
Now the Goldwater Institute has issued a letter to the Pima County Board of Supervisor and Chuck Huckelberry stating that what they are doing is not only irresponsible but illegal.
First, let’s look at the Gift Clause. The clause clearly states that the County cannot “give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any ….. corporation.” If public monies are to be used for private benefit then the government must receive fair consideration in return.
Even though the county will receive rent payments on the 135,000 square foot building that they are contracted to build for World View, World View is receiving use of the balloon launch pad free of cost. World View also has the right to control and rent this launch pad for profit. The county will receive its original capital investment plus a profit over the 20 year lease, if World View succeeds. This would be less than other safer investments. Furthermore, the county would not even start to realize a return on its investment until year 18 of the 20 year lease and would likely only produce monies enough to cover the maintenance of the launch pad.
Now let’s address the Emergency Clause. This clause was enacted so that the County Administrator and Board of Supervisors did not have to follow the rules of the county when it comes to the Pima County Procurement Code. This code requires that a competitive bid must take place prior to any contracts being agreed to. The County was consulting with both Swaim Associates, Ltd and Barker Morrissey Contracting, Inc. 6 months prior to seeking approval of the contracts. The county awarded the construction contracts to these two businesses without a competitive bid process taking place claiming that an emergency existed.
THERE WAS NO EMERGENCY.
All of the above is a clear violation of the Gift Clause and Emergency Clause and puts the taxpayer as great risk while allowing a private corporation to enjoy the benefits relatively risk free.
The Goldwater Institute has stated that should the county choose to ignore the request to terminate the agreements with Swaim Associates and Barker Morrissey and cancel the related Certificates of Participation, the County WILL be liable to a constitutional and statutory challenge by County taxpayers to enjoin these illegal expenditures.
Once again I will say that this is not about World View, Inc. This is about how the Majority Board of Supervisors and the County Administrator have been doing business for years. This county did not acquire $1.4 Billion dollars in debt over night.
This is why new businesses do not want to come to Pima County and why many of the businesses currently in Pima County struggle. Special favors, picking and choosing who gets contracts and unlawful acts. All of these combine to present an unfriendly business atmosphere and explain why jobs are leaving, not coming to Pima County.
All of the above information can be found in the letter issued by the Goldwater Institute. This letter can be found on my website at www.demarcoforsupervisor.com.
Kim DeMarco, Candidate for Pima County Supervisor, District 3