News Summary
The Scottsdale City Council is considering filing a lawsuit against Arizona regarding Senate Bill 1543, which allows significant development without local hearings. Community opposition is growing, with over 25,000 signatures collected against the project. Tensions arose during council discussions, balancing residents’ rights against potential economic benefits. The final decision on pursuing the lawsuit will be made in a special meeting on September 9.
Arizona – The city of Scottsdale is considering legal action against the state of Arizona due to concerns over the constitutionality of Senate Bill 1543, commonly known as the “Axon bill.” A special meeting has been scheduled for September 9, during which the Scottsdale City Council will vote on a resolution to initiate a lawsuit against the state.
Senate Bill 1543 was signed into law by Governor Katie Hobbs on April 18, 2025, and is set to go into effect on September 26, 2025. The legislation grants Axon Enterprise Inc. permission to construct a $1.3 billion headquarters campus in Scottsdale, which will also include a luxury hotel and around 1,900 apartments. The bill mandates that municipalities with populations between 200,000 and 500,000 must allow hotel and multifamily residential development under certain conditions without public hearings.
The city of Scottsdale’s population was recorded as approximately 241,000 in the 2020 census, making it subject to the stipulations set forth by Senate Bill 1543. Local community members and activists have expressed strong opposition to the planned development, as demonstrated by their collection of over 25,000 signatures to push for a referendum aimed at halting the project approved by the council.
During recent discussions among council members, there were noticeable tensions surrounding the potential lawsuit against the state. Councilmember Barry Graham voiced significant disappointment over the decision to potentially abandon the litigation, citing the importance of residents’ rights to have a say in development decisions impacting their community.
The discussions also included a closed 90-minute meeting with attorneys, leading to a reconsideration of the city council’s original motion to vacate plans for pursuing the lawsuit. Councilmember Adam Kwasman defended this decision by emphasizing the potential for more favorable negotiations with Axon, while Vice-Mayor Jan Dubauskas pointed out that the primary issue is the law itself rather than the company involved.
Furthermore, Axon’s spokesperson, David Leibowitz, stated that pursuing litigation would not only waste resources but also jeopardize thousands of jobs associated with the development project. The council ultimately voted to vacate the lawsuit motion, with support from the mayor and several council members, despite dissent from others who raised concerns about the implications for residents’ rights regarding development matters.
In light of the council’s decision, Mayor Lisa Borowsky indicated that the matter remains unresolved and would likely be revisited in future council meetings. As the scheduled vote approaches, both the city council and residents of Scottsdale remain on alert regarding the implications of Senate Bill 1543 and the impending development slated for their community.
Senate Bill 1543 represents a significant change in how municipal development decisions are made in Arizona. The controversy surrounding the bill highlights broader concerns regarding local governance, community engagement, and the rights of citizens in shaping their urban landscapes. As the city prepares for the upcoming meeting, the outcomes of Council discussions regarding the lawsuit against Arizona could have far-reaching consequences for both residents and the Axon project itself.
Deeper Dive: News & Info About This Topic
- Arizona Mirror: Scottsdale Scraps Lawsuit Against Law that Blocks Voter Referendum on Axon HQ
- ABC15: Scottsdale Considers Lawsuit Against Arizona Over Controversial Axon Bill
- 12 News: Scottsdale City Leaders Consider Legal Action to Oppose Axon Headquarters Project
- Fox 10 Phoenix: Scottsdale Leaders Defer Decision on Suing State over Axon Expansion
- Wikipedia: Axon Enterprise
- Encyclopedia Britannica: Referendum

Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.