To embed, copy and paste the code into your website or blog: In recent years, courts have seen an increasing amount of cases challenging Arizona economic development deal opportunities between public and private parties under the “Gift Clause” of article IX, section 7 of the Arizona Constitution. Generally speaking, the Gift Clause prohibits a public entity from offering donations, grants, or subsidies to private entities. In an economic development setting, the Gift Clause prohibits an agreement between a public and private entity that is so lopsided (i.e., the public entity is giving much more than it is receiving) that it constitutes a gift from the public entity. Companies and economic development departments will need to continue to consider the application of the Gift Clause to a transaction as there is increased competition across the nation for economic growth opportunities.