Washington, D.C. — Pima County in Arizona has introduced new regulations restricting the use of nondisclosure agreements (NDAs) in economic development projects, following public outcry over Amazon’s secretive “Project Blue” data center initiative. The American Economic Liberties Project has praised the move as a significant step toward greater transparency and accountability in local governance. n nPat Garofalo, Director of State and Local Policy at the American Economic Liberties Project, criticized the widespread use of closed-door agreements, calling them fundamentally flawed and detrimental to democratic oversight. He explained that such arrangements often prevent residents from learning how public funds are being used and hinder elected representatives from making informed decisions. According to Garofalo, Pima County’s updated policies represent meaningful progress, even if a complete ban on economic development NDAs would offer stronger safeguards. He commended county supervisors for taking action and setting a precedent that other jurisdictions could emulate. n nThe controversy began when officials in Tucson and Pima County entered into confidential agreements with Amazon regarding a large-scale data center. Details including the company’s identity and the project’s substantial water and energy consumption were withheld from both the public and certain government officials. Once the information surfaced, opposition intensified, ultimately leading the Tucson City Council to reject the proposal. In response, Pima County revised its approach by imposing a two-year limit on NDAs, mandating ongoing monitoring, and requiring that essential project details be disclosed to the public at least 90 days before any official vote. n n— news from American Economic Liberties Project
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Economic Liberties Applauds Pima County AZ For Reining In Corrupt Secret Deals Following Project Blue Controversy
Washington, D.C. — Following news that Pima County, Arizona, has adopted new restrictions on secretive nondisclosure agreements (NDAs) in economic development deals, which comes after Amazon’s “Project Blue” data center was blocked by the Tucson City Council amid widespread public outrage, the American Economic Liberties Project released the following statement. n n“Economic development nondisclosure agreements are simply and comically corrupt,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “They keep the public from knowing what is being done with their tax dollars, prevent elected officials from understanding what they’re voting on, and let big corporations operate in secrecy until it’s too late for anyone to stop them. Pima County Supervisors deserve credit for reining in these secretive practices and setting an example other states and localities can follow. While banning economic development NDAs outright would be the strongest fix, this is a critical step in the right direction.” n nLast year, Tucson and Pima County officials signed secrecy agreements with Amazon over a massive data center project known as “Project Blue.” The deals kept the company’s name and the project’s enormous water and energy demands hidden from the public — and even from some local officials. When the details came out, outrage grew and Tucson’s City Council killed the project. Pima County, which had gone along at first, has now changed course with new rules that cap economic development NDAs at two years, require regular oversight, and make key information public 90 days before a vote. n nRead more on how states can ban secret deals here. n nLearn more about the fight to Ban Secret Deals here. n nLearn more about Economic Liberties here. n n### n nThe American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.