Axon Pulls Back from Controversial Negotiations with Scottsdale

Axon has officially ended negotiations with the City of Scottsdale regarding its planned global headquarters. Despite this setback, the company remains committed to staying in the city.

Negotiations commenced following the signing of a law by Governor Katie Hobbs in April, which facilitated the construction of a new headquarters in north Scottsdale near Loop 101 and Hayden Road.

Originally, the development was to include 1,900 apartments and condominiums, a hotel, and retail spaces, with about 30% of the apartments designated for workers.

Disputes arose concerning the number of apartments and the overall footprint of the headquarters. These issues sparked extensive negotiations between Axon and city officials.

Axon President Josh Isner expressed frustration over what he termed a “toxic environment” created by city officials. He claimed the company had presented a “great deal” but found the ongoing internal politics made it unfeasible to finalize an agreement.

Mayor Lisa Borowsky acknowledged the challenges, indicating there were significant hurdles to overcome for a successful agreement. She appreciated Axon’s willingness to engage in meaningful dialogue and hoped for more productive discussions in the future.

Despite the negotiations, the City Council recently voted to hire a lawyer for up to $100,000 to assess the law’s constitutionality. This law mandates that cities with populations between 200,000 and 500,000 allow hotels and multifamily housing in light industrial zones without public hearings.

After the lawyer’s hiring, Isner criticized the Council’s decision, stating it raised tensions further. He emphasized that the company is prepared to engage positively when the Council is ready to foster a collaborative atmosphere.

The Council had previously approved zoning for this project, but opposition from a group called Taxpayers Against Awful Apartment Zoning Exemptions led to a petition effort, aiming to bring the matter to a public vote.

Critics of the law during its legislative journey labeled it as “special legislation,” arguing it bypassed the public will of Scottsdale residents. Conversely, proponents contended it was vital for retaining Axon and the jobs associated with the new headquarters in Arizona.