Scottsdale explores legal challenge to law that enabled Axon housing development

PHOENIX – Scottsdale officials are weighing their options after a new state law cleared the way for a controversial Axon housing development.

During Tuesday’s meeting, the Scottsdale City Council allocated $100,000 to get outside legal advice on the possibility of challenging the constitutionality of Senate Bill 1543 in court.

The resolution was adopted after a proposal to allocate $200,000 was cut in half. The city will retain Dominic Draye of Greenberg Traurig to explore the matter.

“Putting the Axon project aside, this legislation is bad for our community, which we cannot stand by and ignore when there are viable legal challenges that exist,” Mayor Lisa Borowsky said in a press release.

President of Axon responds to Scottsdale City Council decision

Axon, a homegrown multibillion-dollar company, had been working toward a deal with the city, but the latest move apparently derailed talks.

“The only thing I respectfully asked was that the city not raise the temperature during this time, as it would be a distraction to progress,” Axon President Josh Isner said in a statement after Tuesday’s vote.

“Tonight, the Council instead chose to raise the temperature yet again. When the Scottsdale City Council decides to lower the temperature, we will be standing by as willing and productive partners.”

Axon, which has been based in Scottsdale since it was founded in 1993, makes Tasers and other technology and weapons for law enforcement, military and civilian use.

A zoning change to let the company include a large apartment development on the land it bought for a new headquarters was facing a voter referendum next year until SB1543 was signed into law by Gov. Katie Hobbs on April 18.

What is the Axon housing plan?

Axon purchased a 70-acre parcel near Hayden Road and the Loop 101 Pima Freeway in 2020 with an eye on building a new base, revealing later that the plan included nearly 1,900 residential units.

Rezoning to allow the Axon housing was approved last year, after the incumbent mayor and two councilmembers lost their reelection bids in November but before their terms ended.

However, Axon’s ambitious plans were put on hold after opponents gathered enough signatures to put the zoning change in front of voters in 2026.

Facing the prospect of waiting nearly two years to find out if the project could move ahead as planned, the company said it would explore the possibility of moving its headquarters out of Arizona.

State lawmakers removed the ballot obstacle with SB1543, which makes certain rezoning in cities of Scottsdale’s size exempt from referendum petitions.

“No one likes to have something shoved down their throat, if you will, and that’s how the citizens feel,” Borowsky told KTAR News 92.3 FM’s The Mike Broomhead Show on April 23.

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