At issue is the emergency legislation passed by state lawmakers to clear the way for a sale of the parcel--the site of a former state mental hospital--to Toyota. Detroit area development firm DPG York LLC filed a lawsuit against the state after the legislation was passed. DPG York was actually the high bidder for the property, which it wants to develop primarily for residential use. But Gov. Jennifer Granholm and other state leaders say the jobs that the Toyota center would create would be of greater long-term value to the state. Toyota never placed an exact number of jobs that might be created if the R&D center is built, but state and local leaders peg the number at well above 1,000.

Bridget Medina, with the department of management and budget, says the state now will take the case to the Court of Appeals for a ruling on the constitutionality of the legislation. "We're confident that the Court of Appeals is going to reverse the decision of the Circuit Court and uphold the constitutionality of the action," she says.

No date has been set for that hearing, but Toyota is anxious to see the matter resolved. "We do hope that is done quickly," says Bruce Brownlee, general manager of the Toyota Technical Center in Ann Arbor. "We're still interested in pursuing this, but we need to find out more about how this could potentially impact our decision to move forward."