Judge tosses EVIT lawsuit over long-term lease with health care center on Mesa campus

PHOENIX – The East Valley Institute of Technology’s lawsuit over a health care center’s long-term lease on school property was dismissed Tuesday.

The EVIT lawsuit against Adelante Healthcare and Mesa Medical was related to a 40-year lease signed in 2011.

The state-funded career training school’s civil complaint, which was filed Feb. 26, was tossed out of Maricopa Superior Court because it was outside the applicable eight-year statute of limitation period, according to court records.

Adelante CEO Pedro Cons welcomed the judge’s ruling.

“It lets us remain focused on what we do best — delivering outstanding health outcomes for the people and communities we serve,” Cons said in a statement. “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.”

EVIT said it isn’t trying to evict Adelante, but the school is considering an appeal.

“Our priorities are following the law and making sure taxpayers are fairly compensated for use of public resources,” Superintendent Dr. Chad Wilson said in a press release. “We are looking at legal options that will allow us to move forward on these priorities. Our district’s taxpayers are being greatly shortchanged. That has to stop.”

How are EVIT, Adelante and Mesa Medical connected?

Adelante operates a 45,000-square-foot health care center on the trade school’s main campus on Main Street between Dobson and Alma School roads in Mesa.

Mesa Medical, which financed and built the $15 million facility at no cost to EVIT, receives over $60,000 in monthly payments from Adelante.

Meanwhile, EVIT receives about $2,800 per month under the terms of the original lease agreement.

In addition to providing comprehensive care for low-income community members, the facility serves as a training ground for EVIT health students.

Adelante said EVIT gets over $500,000 in value each year from the training arrangement.

Why was EVIT lawsuit filed?

Five months before filing the lawsuit, school officials announced they’d uncovered potential issues with the lease.

The EVIT lawsuit alleged that the lease wasn’t properly authorized under state law, and it represented a gift to a private business in violation of the Arizona Constitution.

The trade school also maintained that it wasn’t being paid fair market value for rent while a third party made millions on the deal.

Adelante’s current leadership team wasn’t involved in the lease negotiations. The company said it completed a review of the deal and didn’t find any evidence of impropriety.

In fact, Adelante and Mesa Medical were planning to countersue EVIT for damages exceeding $200 million.

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