Axon Ends Scottsdale Negotiations Over Headquarters Project

Categories: Arizona Business NewsArizona State News

An artistic rendering of the proposed Axon headquarters surrounded by residential units.

News Summary

Axon has halted its negotiations with the City of Scottsdale for a new headquarters due to internal political issues. Despite support from most City Council members, local residents opposed the project citing concerns over traffic and water supply. Governor Hobbs’s law allowing development without a public vote has added complexity to the situation, leaving both sides hopeful for possible future negotiations amidst ongoing resistance.

Arizona – Axon has officially ceased negotiations with the City of Scottsdale regarding its proposed headquarters compound, citing insurmountable internal politics within the City Council as the primary barrier to a successful agreement. Axon’s president, Josh Isner, characterized the political climate as “toxic,” indicating that the company encountered significant challenges despite making extensive offers in their discussions with local officials.

The proposed headquarters would have been located near Loop 101 and Hayden Road and was intended to include nearly 1,900 apartment units intended for employees of the firm. However, the project faced substantial resistance from some Scottsdale residents who raised concerns about the size of the development. Chief among their worries were potential increases in traffic and issues related to the area’s water supply, which some, including former Scottsdale City Council member Bob Littlefield, argued were insufficient to accommodate the increased population that the development would bring.

Despite these concerns, a majority of the Scottsdale City Council had shown support for the project, voting in favor of it last November. However, this support has not been enough to override the dissent from residents, nor to negotiate a favorable outcome for Axon. In the face of strong public opposition and recent accusations that the company had threatened to relocate unless the state legislature passed a favorable zoning bill, the political landscape has grown increasingly complex.

In April, Arizona Governor Katie Hobbs signed into law a bill that allows Axon to bypass a public vote regarding its development, enabling the company to move forward with their plans without additional public input. This legislative change prompted the Scottsdale City Council to approve a $100,000 contract with legal expert Dominic Draye, tasked with analyzing the new law and providing legal recommendations on its implementation.

Mayor Lisa Borowsky acknowledged Axon’s willingness to engage in constructive discussions but noted that the negotiations were hindered by overwhelming obstacles. Isner expressed disappointment with the negativity surrounding the proposed housing units, particularly given that all but three members of the Scottsdale City Council had ostensibly supported Axon’s expansion plans.

Following the passing of the legislation allowing for development without public hearings, Axon confirmed its intention to proceed with its original plan, which now includes approximately 2,000 residential units. However, opposition from groups such as Taxpayers Against Awful Apartment Zoning Exemptions (TAAAZE) remains potent, with active campaigning against Axon’s expansion efforts ongoing since their inception.

Moreover, there is ongoing speculation about potential legal challenges from residents and city leaders who oppose the newly facilitated expansion laws. Despite the hurdles, Mayor Borowsky has expressed hope for potential future negotiations that could yield a mutually beneficial agreement, emphasizing the necessity of keeping Axon within the Scottsdale area.

The situation continues to evolve as Axon attempts to navigate local sentiments and regulatory landscapes, remaining a focal point in discussions about urban development, zoning laws, and community dynamics in Scottsdale.