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Attorney General says hotel deal violates constitution

Posted at 7:36 AM, Apr 05, 2019
and last updated 2019-04-05 10:36:43-04

PHOENIX (AP) - The attorney general says a luxury hotel group is improperly receiving millions of dollars in incentives in a property deal with Arizona State University.

Attorney General Mark Brnovich said in a news release Thursday that his office has amended a complaint related to the sale of land to Omni Hotel.

According to Brnovich, the Arizona Board of Regents waived a public auction and sold the land to Omni for much less than market value.

Furthermore, ASU has agreed to pay up to $27.5 million for a conference center and parking spaces that Omni will primarily use.

Brnovich says the corporation is essentially receiving a gift of $37 million in discounts and amenities, violating the Arizona Constitution.

A spokeswoman for the board did not immediately return an email seeking comment.