Judge tosses EVIT suit over medical clinic

Yahoo

16 hours ago

A judge last week dismissed East Valley Institute of Technology's lawsuit to void a lease with a medical provider on its 65-acre Main Campus.
The state-funded vocational education facility earlier this year sued Mesa Medical and Adelante Healthcare, claiming 'a rouge and likely illegal land lease' that puts taxpayers at risk of potentially losing 'hundreds of thousands of dollars' in lost revenue.
Mesa Medical and Adelante asked for the dismissal.
'The EVIT Governing Board will decide whether to appeal the judge's ruling, which was based on what the court considered statute of limitation issues,' EVIT said in a release.
'EVIT's attorneys believe there is a reasonable path to an appeal as the legality of the lease, which is still active, is at the center of the dispute as opposed to any building or construction issues.'
Adelante Healthcare entered into an agreement with EVIT in 2011, leasing 2.3 vacant acres and paying a fixed monthly rent of $2,780 for 40 years or until September 2052.
About 10 months into the lease, it was assigned to Mesa Medical, which financed and built a $15-million medical facility on EVIT's campus.
Adelante then subleased the 42,000- square-foot building from Mesa Medical, paying a base rent of $62,781 a month while EVIT still receives the monthly $2,780 payments, which the superintendent said is well under market value for the property.
EVIT claims both contracts never went to the governing board or the public for a vote as required and instead were executed by then-Superintendent Sally Downey without the board's knowledge or authorization. Downey led the district for 19 years until she was forced out in 2019.
EVIT also claims that the lease violates Arizona's Gift Clause 'given the incredibly lucrative arrangement Mesa Medical managed to obtain at taxpayer expense.'
But according to Adelante, EVIT Board members at the time were aware of the agreements and that they even participated in the development of the facility and attended its groundbreaking.
Maricopa County Superior Court Judge Scott Blaney in his ruling found that EVIT exceeded the eight-year limitation period and is barred from seeking action on the lease.
'It is undisputed that Defendants substantially completed construction of the medical facility more than eight years ago,' Blaney wrote in his Aug. 12 ruling.
According to EVIT, it was last year that the current leadership learned about the 2011 deal. 'We are not challenging the construction nor are we seeking to evict anyone,' Superintendent Dr. Chad Wilson said in a released statement.
'Our priorities are following the law and making sure taxpayers are fairly compensated for use of public resources. We are looking at legal options that will allow us to move forward on these priorities. Our district's taxpayers are being greatly shortchanged.'
EVIT said the ruling comes as it continues to grow and serve the community, increasing enrollment and expanding educational services and classes available.
In 2023, EVIT unveiled a $44-million expansion of its Power Campus in east Mesa, which opened in 2011 to accommodate a growing student body, now around 8,000 students from 11 public school districts.
Adelante Healthcare cheered the ruling.
'We welcome this decision, as it lets us remain focused on what we do best - delivering outstanding health outcomes for the people and communities we serve,' said CEO Pedro Cons in a news release. 'Adelante looks forward to putting this matter behind us and working collaboratively with EVIT to carry on our institutions' important collective health and education missions.'
Adelante Healthcare opened on the campus in 2012, providing care to Mesa residents and acting as a training ground for future healthcare professionals.
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