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.

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.

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.

• She told The Arizona Republic the election date doesn't matter because "there's so much opposition to high-density apartments" in Scottsdale, and Axon is unlikely to succeed.

Business blowback worries

Phoenix Sky Harbor Airport ranked fourth in the nation for TSA gun confiscations last year.

Why it matters: Most of the guns found at airports nationwide were loaded, which threatens the safety of employees and other passengers, per the TSA.

• Plus: A firearm discovery brings the TSA line to a standstill until police resolve the incident — delaying travelers from getting to their gates. People who bring weapons to an airport can face civil penalties that can stretch into the thousands of dollars.

By the numbers: Federal agents found 247 firearms at Sky Harbor's TSA checkpoints in 2024, up from 235 in 2023.

Gov. Katie Hobbs' administration outlined some of her top priorities in its executive budget proposal, but she'll have to decide which ones are make-or-break when she negotiates with the Republican-controlled Legislature.

1 big priority: In her annual State of the State address last week, Hobbs touted funding for child care among her biggest agenda items for the new legislative session.

How it would work: Hobbs' Bright Futures AZ plan creates several new child care programs:

• A $3 million public-private partnership in which businesses and the state would pay one-third the cost (up to $400 monthly) of an employee's child care for kids five and younger.
• $1 million in tax credits to help businesses pay for employees' child care, with individual businesses qualifying for $100,000 maximum.
• A $3 million grant program available to school districts, nonprofits and child care providers to create new slots for kids ages 5-12 after school and during the summer.
• $3.5 million in one-time federal funding to help child care providers get licensed.

1 big pipe dream: While the governor's budget plan is a starting point for discussions with the Legislature, at least one proposal will almost certainly be non-negotiable. Hobbs proposed an Empowerment Scholarship Accounts (ESA) reform that would impose a scaled income cap on the voucher-style program for K-12 education.

Hobbs' budget priorities

President Trump began his new term with a flurry of executive orders on border security and immigration. That included orders declaring a national emergency at the U.S.-Mexico border, purporting to end birthright citizenship for the children of undocumented immigrants, and reinstating his "Remain in Mexico" policy. (Axios)

🗳 The Arizona Democratic Party ousted chair Yolanda Bejarano and elected Robert Branscomb to the role. (AZcentral)

🎨 Sky Harbor International Airport is adding a "Culture Corner" with interactive crafts, live art demonstrations and musical performances to Terminal 3. (KTAR)

Congratulations to Nancy Greenlee and Keri Ramsey for being the first readers to give us the correct location of Friday's "Where in the Valley?" photo.

• The mural is on the side of an apartment building on Colter Street west of 16th Street.

State of play: The man in the 1980s-themed mural is Phil Collins, which is fitting since the apartment complex is called Collins Off Colter.

• It was painted in 2023 by local painter and muralist Ryan Rodriguez.

Zoom out: Rodriguez told Axios Phoenix he's done murals for businesses at Epicenter in Gilbert and has an upcoming project with the Garage-East wine bar.

• He mostly creates murals but has done canvass commissions for the Troon Country Club clubhouse and a lot of logo work for local small businesses.
• You can check out Rodriguez's art on his Instagram page.

1 big omission: A belated congratulations to Barb Martin and Matt McGrath for giving us the correct location of last week's "Where in Arizona?" pic, which was the Children's Garden at Foxglenn Park in Flagstaff.

• Their emails got lost in our spam folder. Our apologies!