A ruling from the Arizona Supreme Court could have a major impact on the kinds of economic development deals cities make with businesses going forward.

In the decision from last week, the justices ruled Peoria had violated the state constitution’s gift clause, in a deal with Huntington University and the school’s landlord.

The West Valley city had given the private university a little more than $2.5 million to bring a campus to Peoria’s P83 district. But the court said the deal was unconstitutional because it did not directly benefit the public, as the gift clause requires.

To get a better understanding of the ruling and what it might mean for the state and its cites, The Show spoke with Erin Scharff, associate professor of law at ASU’s Sandra Day O’Connor College of Law.

More Stories From KJZZ

• Arizona Lawmakers To Debate Proposal To Raise Gas Tax
• COVID-19 Relief Efforts Lead To Scams, Financial Fraud