Scottsdale City Council Approves Major Payout for External Lawyer Amid Axon Development Controversy

SCOTTSDALE, Ariz. — In a significant move, the Scottsdale City Council has approved the allocation of $100,000 in public funds to retain external legal counsel. This decision suggests the city may be gearing up to contest a controversial state law that could facilitate Axon’s multibillion-dollar development project in north Scottsdale.

The proposed legal assistance aims to explore options for opposing legislation that effectively nullifies a local ballot initiative intended to halt the development. The council had initially earmarked $200,000 for this purpose but revised the figure in their Tuesday meeting.

Last month, Governor Katie Hobbs enacted a bill allowing Axon to advance plans for a state-of-the-art headquarters and mixed-use campus near the Loop 101 and Hayden Road. This project has raised concerns among residents, particularly regarding plans for apartment construction, which necessitated rezoning. Thousands of Scottsdale residents had gathered signatures for a ballot referendum poised for a public vote in November, but that effort has now been rendered moot by the new law.

“Make no mistake, this is the Axon bill, and it is specifically tailored to address Axon’s demands,” stated Scottsdale Mayor Lisa Borowsky. She emphasized the need for an assertive response to the legislation.

Opposition to the bill highlights a growing conflict among state lawmakers, city leaders, and citizens. Critics argue that the legislation undermines local democracy by ignoring voters’ desires regarding land-use changes.

Axon CEO Rick Smith has defended the residential component of the project, asserting it is crucial for attracting talent in a competitive tech environment. Estimates suggest that the development could inject $38 billion into the Arizona economy and create approximately 5,500 jobs.

During the bill signing, Governor Hobbs affirmed her support, stating her priorities focused on preserving jobs for Arizona families.

While city officials have not confirmed plans to pursue legal action against the state, hiring outside counsel marks a pivotal step in that direction. The council’s recent vote illustrates an escalating confrontation regarding local governance and development rights.

In a response to the council’s actions, Josh Isner, President of Axon, expressed a desire for constructive dialogue. He highlighted previous discussions with city council members aimed at reducing tensions and fostering cooperation. Isner stressed that productive engagement requires a collaborative atmosphere free from escalating disputes.