By Roland Murphy for AZBEX
Anyone hoping for an in-depth look into how the group opposing Axon Enterprise’s master-planned corporate campus and headquarters development in north Scottsdale was funded may never get any actual satisfaction.
Taxpayers Against Awful Apartment Zoning Exemptions filed its required campaign finance report with the City of Scottsdale on Jan. 15. That report, however, provides no real insight into the mechanics of TAAAZE’s operation or spending.
The report shows zero individual contributions. Not a single Scottsdale resident contributed a single dollar to the campaign. Whether any attempted but had their potential gifts declined is not noted.
What is noted is there were only two contributors. Worker Power—the political arm of California-based labor union Unite Here Local 11, a group that tried to leverage Axon into accepting it as the collective bargaining agent for workers at the eventual businesses on the site—gave $21,609.22 in “in-kind contributions.”
The surprising entry, however, was a small cash contribution and massive in-kind contribution from a Mesa-based lobbying and political action organization known as Public Integrity Alliance (aka Arizona Public Integrity Alliance).
PIA made $30,200 in monetary contributions and $407,837.50 in in-kind contributions in five disbursements ranging from $5,337.50 to $170K.
$30,141.18 of the cash was spent on printing, website services, paid signature collection and attorney’s fees.
Because of the nature of in-kind contributions and the laws governing them, there is no immediate way to tell how the $429,446.72 was used or how it was secured by Worker Power or PIA.
Background on the Fight
Since Scottsdale City Council approved Axon’s required rezoning and development agreements to build a nearly $1.3B corporate campus that includes a 401KSF corporate headquarters and manufacturing facility, nearly 1,900 multifamily units, six retail buildings, a 435-room hotel, and seven restaurants at the NEC of Hayden Road and Mayo Blvd., TAAAZE has worked to put a referendum that would overturn the approval on the ballot.
Founded and led by former Scottsdale City Councilmember Bob Littlefield, the group turned in nearly 27,000 signatures. The effort needed more than 15,000 to qualify for the ballot. Although they must still be verified before a Feb. 12 deadline, it is likely more than enough will survive review to make the cut.
The next general election for which the referendum would be eligible is November 2026. Council could call a special election, but recently installed Mayor Lisa Borowsky and most of the Council were elected by anti-development (specifically anti-apartment) voters. While Borowsky has said she wants to keep Axon and would like to see additional negotiations, a special election is probably not an option. Given that segment’s sentiment and the cost of a special election while the City is trying to manage burgeoning expenses, that option appears highly unlikely.
Axon officials, including Founder and CEO Rick Smith, have said the company will fight to win the referendum if it is held in 2025, but will likely relocate the company out of state if they have to wait until 2026.
AZBEX has covered the ins and outs of the Axon/TAAAZE fight in detail; so we won’t rehash the specifics here. For the full stories, please see our Dec. 16, Dec. 17 and Jan. 10 article links.
Funding, In-kind, and Reactions
According to the Arizona Secretary of State’s Political Action Committee Guide, “In-kind contributions are non-monetary benefits, including goods, services or anything else of value that are provided to a PAC without charge or at less than the usual and normal charge. Donated or discounted goods and services generally constitute contributions, and therefore are subject to contribution limits and source restrictions.”
It goes on to say, “In-kind contributions must be reported at fair market value—the price it would cost someone else to purchase the same good or service… However, certain volunteer services are exempt from being considered an in-kind contribution or expenditure.”
And that’s where any insight or transparency stops. While details of cash expenditures must be provided in the campaign finance report, the only details required for in-kind contributions are the amounts and the dates of receipt.
In a statement to a local news outlet, Littlefield said the $407K from PIA “was spent on an outside organization that helped with the signature drive.” He added, “The $407,000 never went into our bank account, therefore it was an in-kind rather than a direct contribution.”
The article reports the in-kind contribution from Worker Power was for signature collection efforts, according to Littlefield.
In a separate article, Littlefield said he did not know why Worker Power or PIA took interest in the petition signature drive, but he expressed his appreciation for their help, saying he “didn’t have $450,000 lying around.”
The article also said, “He’s not concerned the donations could be considered ‘dark money’ since neither The Arizona Public Integrity Alliance nor Worker Power is required to file where their money comes from.” He said TAAAZE’s campaign funding was, “no darker than anybody else.”
Axon officials took a more traditional view of what constitutes dark money. In a statement, David Leibowitz, Axon’s spokesperson, said, “We have not yet reviewed the campaign finance filings from this group, but here’s what we know for sure: That whatever dark money ‘alliance’ or California labor union allegedly funded this petition campaign, it may very well cost Scottsdale and our state one of the nation’s fastest-growing technology companies.”
What is Arizona Public Integrity Alliance?
PIA is a Mesa-based political activist organization run by Tyler Montague out of his home. A 2014 profile said he started the group after developing an interest in politics during the recall campaign against former Arizona Senate President Russell Pearce.
Montague and PIA have both gotten in trouble over specific past campaign activities. In 2013 Montague was forced to issue an apology for “a lack of integrity” associated with an ad campaign against then-Attorney General Tom Horne. He also was investigated for illegally placing campaign signs around Gilbert during the 2020 mayoral election.
The recent article quoting Littlefield and Axon officials also included a statement from Montague issued by TAAAZE: “Residents such as TAAAZE Chairman Bob Littlefield had the courage and determination to stand up to Axon’s bullying tactics and stand with the people of Scottsdale. Bob’s efforts will hold our elected leaders accountable regarding a land deal that amounts to a massive subsidy for Axon at the expense of taxpayers, neighborhoods and our schools. The alliance exists to support efforts such as these and balance the scales to prevent billion-dollar companies from steamrolling residents and taxpayers.”
While the Arizona Corporation Commission shows Arizona Public Integrity Alliance, Inc. as an active nonprofit, the Arizona Secretary of State Lobbyist System shows its status as “Inactive.” The group’s website is also no longer in use.
