Posted Jan 8, 2025, 5:27 PM
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Axon’s future in Scottsdale in flux amid referendum effort
🞵🞵🞵 is going on here? Axon saga continues in Scottsdale...
https://www.bizjournals.com/phoenix/news/2025/01/06/axon-s-future-in-scottsdale-up-in-the-air.html
Quote:
One of the Valley’s largest economic development projects may be in search of greener pastures.
Axon Enterprise Inc. CEO Rick Smith confirmed Jan. 6 that the maker of tasers and body-worn cameras is considering alternatives to Scottsdale for its planned mixed-use headquarters campus after project opponents last month gathered thousands of signatures in support of a referendum.
Smith also confirmed that Axon (Nasdaq: AXON) has postponed a groundbreaking ceremony that was set to be held Jan. 10.
"We put out notice today that we're going to cancel," Smith told the Business Journal. "It makes no sense to break ground on something that we don't have certainty we'll have the permits to build."
The $1.3 billion project, which is set to include nearly 2,000 residential units alongside restaurants, a hotel and Axon’s new headquarters building, was approved by Scottsdale City Council on Nov. 19.
Smith made it clear that Axon's strong preference is to move forward with those plans. But the headquarters campus is no longer a sure bet to rise in Scottsdale — especially if the referendum process drags beyond 2025.
"I think the odds of us waiting until 2026 are zero," Smith said. "There's a point where you've just got to move on."
Texas, Florida possible destinations for Axon
Smith cited Texas and Florida as potential destinations for Axon if the Scottsdale project doesn't ultimately move forward. He also noted that the company maintains a "sizable presence" in Atlanta, Boston, Washington, D.C. and Seattle — cities where the company may "decide to double down."
States and municipalities from across the country have been keeping tabs on Axon's efforts in Scottsdale over the past year, said the company's land-use attorney, Charles Huellmantel of Huellmantel & Affiliates.
"Other cities and states have been watching this carefully for the last year and keep in contact with us regularly, and we've certainly heard from all of them since the referendum process started," Huellmantel said.
Smith added that Axon would likely "close our Scottsdale operation and move on" if the headquarters campus isn't ultimately approved, which means Arizona could wind up losing one of its largest public companies. Another likelihood is that Axon would sell the roughly 70-acre site where it intends to build its mixed-use vision. That site is currently zoned for industrial uses.
Axon has spent years working through city channels to get the corporate campus project approved. The final package included a 23% reduction in the number of residential units contemplated by the project, along with a major road realignment to offer a buffer to the nearby Stonebrook II neighborhood, the removal of a controversial roundabout, increased setback distances and upgraded landscaping.
The project is expected to generate a direct economic impact in the city of $4.6 billion over 10 years, according to Scottsdale Economic Development Director Teri Killgore.
Smith also made clear Jan. 6 that Axon will not consider proceeding with its Scottsdale headquarters campus if the residential units — which have long been a concern of some residents — are not part of the project.
"I can't build half the campus. My board won't approve it," Smith said. "This campus doesn't work if we don't have the ability to do this as an integrated project."
How the referendum process works
Nearly 27,000 signatures in support of a referendum were submitted to the city of Scottsdale on Dec. 21, confirmed Kelly Corsette, the city's communications and public affairs director.
The city began the required statutory verification process on Dec. 23 and has 20 business days to complete the effort, which calls for Scottsdale to review each of the 2,292 petition sheets to ensure they are completed and correctly notarized, among other steps. Any incorrect sheets or signature lines are then removed.
"If the total number of remaining signatures equals or exceeds the minimum required number of signatures, the City Clerk is responsible for selecting a 5% random sample of the total signatures for verification by the County Recorder," Corsette wrote in a Jan. 6 email.
The Maricopa County Recorder would then have 15 business days to complete its signature verification process. If at least 15,353 valid signatures remain at that point, the city is required by the Arizona Constitution to put the ordinance on the November 2026 General Election ballot. City Council could also call a special election before then, Corsette said.
Axon officials will be closely watching to verification process. Huellmantel acknowledged Jan. 6 that the referendum likely won't go before voters until at least November 2025.
"There's been a lot of talk from the incoming Council of pushing this to November of '26 as opposed to November of '25, but we don't control that process," Huellmantel said.
Bob Littlefield, a former Scottsdale City Council member and chairman of Taxpayers Against Awful Apartment Zoning Exemptions, supported the effort to gather the referendum signatures.
“To be clear, TAAAZE is not opposed to Axon building a new headquarters in Scottsdale. That’s what was originally promised and that’s what was originally approved," Littlefield said in a Dec. 23 statement about the referendum. “But if keeping Axon in Scottsdale means capitulating to ... the largest apartment complex in city history, that’s not going to happen."
Littlefield could not immediately be reached for additional comment before this story was published.
Axon is one of the fastest growing public companies based in Arizona, with growing its market cap by more than 140% in 2024. As of Jan. 1, Axon’s shares had a total market value of more than $45 billion.
Axon’s stock slipped during regular trading hours on Jan. 6, ultimately closing down 5% to $570.71 for a total market cap of around $43.5 billion.
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