Statement from ABOR Chair Lyndel Manson on Supreme Court decision on Omni Hotel at ASU
April 5, 2022
“Today, the board is pleased the Arizona Supreme Court rejected a core of the challenge lodged by the Arizona Attorney General regarding a real estate transaction that has made possible the development of Omni Tempe Hotel at Arizona State University. With its decision, the court affirmed two lower court decisions that the property where Omni Tempe Hotel is being constructed is and has long been tax-exempt state land.
“The court remanded to the trial court those portions of the Attorney General’s complaint that allege that the transaction somehow violated the gift clause provision of Arizona’s Constitution and is outside of the leasing authority granted by the Legislature to the board. It is notable the court did not rule on the merits and the board remains confident the claims are meritless.
“The project the Attorney General has sought to derail is creating a significant community asset for ASU and the Tempe community. Upon completion, Omni Tempe Hotel at ASU will deliver a much-needed hotel and conference center to ASU’s Tempe campus – providing critical space for student and university activities while boosting the economy and generating a projected $120 million in rent payments to help fund university operations. The Omni Hotel at ASU will also play a critical role in supporting the convention and tourism industry in the City of Tempe.
“We look forward to the expected completion of Omni Tempe Hotel at ASU in spring 2023.”