Outsider Forces Jeopardize Arizona’s Economic Growth Potential

Arizona faces a critical juncture as Axon, a prominent public safety technology firm, seeks to establish its global headquarters in Scottsdale. The proposed development is projected to inject $3.6 billion annually into the state’s economy while creating 5,500 high-tech jobs. However, this initiative is now threatened by an out-of-state special interest group exploiting Arizona’s outdated referendum laws.

Rick Smith, CEO of Axon, emphasized that the opposition does not stem from local concerns but rather from Unite Here, a California-based union. After unsuccessful attempts to secure an agreement regarding access to employee information, the union has undertaken a campaign to overturn the Scottsdale City Council’s 5-2 approval of the project’s zoning. Their maneuvering could delay the project for at least two years, setting it back until the November 2026 election.

Unite Here has previously used similar tactics against other developments in Arizona, including the VAI Resort in Glendale. Their strategy often involves obstructing progress to force companies into compliance, raising concerns for the future of economic growth in the state.

To combat these challenges, Arizona needs to modernize its zoning and referendum laws. Legislative bills SB1352 and HB2925 aim to clarify development rules, empowering local communities while preventing outside groups from manipulating the process.

Other states, such as Florida, have acted decisively to protect their economies. A recent law in Florida prohibits initiatives that challenge land development regulations, earning broad support from local governments. This proactive approach has created a stable environment for businesses, attracting potential investments away from states lacking similar protections.

If Arizona does not enhance its laws, it risks losing out to more business-friendly states like Texas, which successfully attract high-tech companies. The implications of this situation extend beyond Axon; it threatens Arizona’s competitiveness in the high-wage, high-tech job market.

Axon envisions a transformative mixed-use campus in Scottsdale, designed to promote community and sustainability. This project would encompass green spaces, retail, and residential areas, alongside a running trail. Extensive community engagement has shaped the project, ensuring alignment with local concerns.

Nevertheless, Unite Here is countering these efforts with a misinformation campaign, seeking to undermine local voices and priorities through financial influence. Their tactics focus on exerting control rather than advocating for community interests.

Arizona lawmakers have the opportunity to redefine the regulatory landscape. By passing SB1352 and HB2925, they can ensure a transparent development process that incorporates community input without external interference.

For over three decades, Axon has established its roots in Arizona, but uncertainty in the state’s laws could compel the company to seek opportunities elsewhere. The choice is stark: modernize the laws to encourage economic growth or concede to the influence of outside interests.

As Arizona stands at this crossroads, decisive action from legislators is crucial. The future of the state’s economy, innovation, and community development hangs in the balance.

Rick Smith is the founder and CEO of Axon.