If Scottsdale says "no" to apartments, it will lose Axon, CEO says
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Axon may move its headquarters out of Arizona. Photo Illustration: Piotr Swat/SOPA Images/LightRocket via Getty Images
Scottsdale's anti-apartment culture could lead to the loss of one of its biggest employers.
Why it matters: The billion-dollar corporation, which develops law enforcement technology and manufactures Tasers and police body cameras, employs more than 1,500 people in Arizona and has been heralded as one of the state's greatest homegrown business success stories.
- Neighborhood opposition to multifamily housing is not unusual, especially in Scottsdale, but this is the first time a major employer has been caught directly in the crosshairs.
The big picture: Axon CEO Rick Smith told Axios he will move the company's headquarters out of state if Scottsdale does not allow him to go ahead with a planned corporate campus by year's end.
Driving the news: Axon canceled a planned groundbreaking ceremony for its new headquarters this month as the project's fate hangs in the balance.
Catch up quick: The Scottsdale City Council approved Axon's corporate campus — which includes 1,900 apartment units, condos, a hotel and an intergalactic-themed headquarters — in November despite neighborhood opposition to the housing portion of the development.
- Shortly thereafter, opponents collected enough signatures to force a referendum on the project. The city is verifying those signatures.
The intrigue: If verified, the city council must call an election by November 2026.
- Smith says he believes the Axon project would succeed at the voter box, but he's unwilling to wait nearly two years to find out.
- The council could choose to hold a special election sooner (potentially as soon as this summer) — but new Mayor Lisa Borowsky and at least two of the new council members are vocal opponents.
- "If we want to let people vote on it, let's get to it and let's get it done," Smith said.
Threat level: Other companies will take notice if Axon leaves the Valley, Smith cautioned.
- "It would be very damaging to the state to get sort of a reputation as being an unpredictable place to make investments," Smith said, noting he'd spent years going through the city planning process just to have it unravel in the final stretch.
Between the lines: Borowsky and other Scottsdale leaders have maintained that they support Axon and want the company to stay but cannot get behind the density of the rest of the project.
- Smith said the headquarters will not happen without the residential component, because he is competing for talent with other major tech companies that have onsite housing and live-work options at their corporate campuses.
What they're saying: Borowsky did not respond to Axios' request for comment about the timing of the potential referendum election or Smith's concerns about larger business community fallout if Axon leaves.
- She told The Arizona Republic she doesn't think it matters when the election is held because "there's so much opposition to high-density apartments" in Scottsdale and Axon is unlikely to succeed.
What we're watching: The city and Maricopa County have until Feb. 12 to confirm the validity of the referendum signatures.
- The opposition group that collected the signatures, Taxpayers Against Awful Apartment Zoning Exemptions (TAAAZE), announced last week it has the support of right-leaning political watchdog group Public Integrity Alliance.
- Per campaign finance records, PIA donated $30,200 to the group's campaign as of Dec. 31.