Unwrapping the Gift Clause

Scott Ziance, partner and head of Vorys’ national economic development incentives practice, and John Collins, a partner in the firm’s litigation group, wrote an article for Area Development magazine, titled “Unwrapping the Gift Clause.”

The article focuses on “gift clauses,” provisions in many state constitutions that restrict using public funds for private benefit.  Agreements tied to economic development incentives, made between governments and private parties, can raise constitutional questions due to these provisions.  The article looks at the history of “gift clauses,” analyzes the decision in JPMorgan Chase Bank, N.A. v. City of Corsicana and Navarro County and offers practical takeaways for developers. They write:

Economic developers and public officials should expect heightened scrutiny and be prepared for evolving legal standards as courts interpret historic constitutional prohibitions in the context of today’s innovation-driven projects.

Click here to read the full story on Area Development’s website.