City North shopping city in court over tax dollars

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PHOENIX - The City North shopping center on the Phoenix-Scottsdale border is gaining more attention for its legal troubles than its economic impact.

The case against the project and its donation to the city is in the Arizona Supreme Court Wednesday morning.

The proceedings are set to get underway at 9:30.

At issue is whether the City of Phoenix should have given developers nearly $100 million tax dollars for the parking garage.

Goldwater and other groups say the city is banned from giving a gift of this kind, to a developer.

But so far courts have ruled the deal is legal if the city gets direct benefits in return.