In a decision yesterday, the state's highest court denied developer Steve Ellman's petition to keep the question off the ballot, leaving approval of the $36.7-million subsidy in the hands of Scottsdale voters. The court also ordered Ellman to pay legal fees that could total $54,000 for STOP 'EM, the citizens' group that opposed using tax dollarsto fund the redevelopment.

Ellman's firm, the Ellman Cos., plans to build a Wal-Mart, Sam's Club and Lowe's Home Improvement Center at the McDowell and Scottsdale road site in exchange for the subsidy, which could grow to as much as $183 million with inflation over the project's 40 years. Louis Schmitt, chairman of STOP' EM, said his group will now focus on a campaign to get voters to reject a city council redevelopment agreement with Ellman.

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