By Jim Stanford on March 1, 2007
A citizen has filed suit against the Town of Jackson, claiming the government’s partnership with Imagine Jackson for a $1 million state grant violates the Wyoming Constitution.
Attorney Peter Moyer filed the suit this morning in 9th District Court in Jackson on behalf of Armond Acri, an engineer and town resident.
The Wyoming Constitution “contains a very broad and strict prohibition on donations by the state, towns and other public bodies to or in aid of private individuals and private entities,” the suit states.
The legal challenge, the latest public outcry over Imagine Jackson, could throw into question the entire state Business Ready Communities program, which provides grants to local governments for economic development.
Last month the town council voted 3-1 to approve a grant request with Imagine Jackson, which describes itself as an economic development corporation. The approval paved the way for the group to obtain an additional $1 million grant from the Wyoming Business Council to develop property in South Park.
Imagine Jackson bought the property last year with an $810,000 state grant also obtained with the town’s help. The group has leased one building to the robotics firm Square One Systems Design and plans to construct another building to house a business yet to be determined.
Among other reasons, the proposal generated controversy because Mark Obringer, a sitting town councilor, is the executive director of Imagine Jackson. Obringer, who has spoken on behalf of Imagine Jackson before the council, has said he does not plan to draw a salary from the group “at this point.”
The state grants must be given to a public entity, which is why Imagine Jackson has sought the town’s help in applying.
Acri’s lawsuit states that the Wyoming Constitution provides only three exceptions to the prohibition on donations to individuals or corporations: “necessary support of the poor,” loans subject to strict limitations, and local revenue sources subject to approval by voters.
“No referendum vote has occurred or is planned for voters within the Town of Jackson on the Imagine Jackson grant funding,” the suit states.
Many citizens have objected to the Imagine Jackson grants on the grounds that government should not be subsidizing private industry.
Proponents have said the grants will help create high-paying jobs for skilled workers, diversifying the economy.
The grant program was designed to help economically depressed areas of Wyoming provide infrastructure that would attract business.
Posted under Imagine Jackson, business, politics, town government
