Neptune Swimming Foundation v. City of Scottsdale

Ruled that the City of Scottsdale did not violate the state’s gift clause when it awarded an operating license to plaintiff swim club’s competitor at below-market rates. The court explained that the Gift Clause does not prevent a public entity from considering nonpecuniary factors in deciding what arrangement terms are most advantageous, even if more financially profitable deals exist. The Gift Clause is triggered only when the chosen arrangement either serves no public purpose or the public is disproportionately short-changed.