By BEX Staff for AZBEX
After appearing to quietly step away from a potential lawsuit against the State of Arizona over a law that enables Axon Enterprise’s plans for a corporate headquarters and mixed-use campus and scraps a referendum drive by Scottsdale residents in the first half of last week, the Scottsdale City Council, then partially pivoted to keep the issue alive.
In a special meeting Sept. 12, Council voted to authorize the interim City Attorney and outside counsel to file a notice of claim against the State over the “Axon Bill,” Senate Bill 1543.
As we reported last week: In the last session, the Legislature passed Senate Bill 1543, which was signed by Gov. Katie Hobbs and creates a State-level authorization for mixed-use campuses with corporate headquarters zoned for light industrial. The legislation, which takes effect later this month, appeared expressly designed to enable Axon’s planned development and keep the company from relocating.
The previous Scottsdale City Council approved Axon’s plans for a corporate campus with the company’s 400KSF headquarters, retail, a 435-room hotel and more than 1,900 multifamily units. The apartment component prompted a backlash that resulted in a petition drive garnering more than 26,000 signatures to put the approval on an upcoming ballot.
In the earlier vote last week, Council voted to vacate an agenda item that would have authorized pursuing a lawsuit.
Friday’s special session vote, however, resurrected the possibility of litigation while potentially keeping the door open for negotiations.
Mayor Lisa Borowsky said the notice of claim would serve as a “notice of constitutional challenge,” according to a local news report.
The measure can be seen as a compromise, since some Councilmembers have expressed hesitation about going to court over the matter, which could establish a precedent concerning State supremacy over local zoning decisions.
A notice of claim is a formal notification that must precede filing a lawsuit. There is no requirement that a lawsuit must be filed after the notice is issued.
Only Councilmember Kathy Littlefield voted against the notice of claim. She favored filing a lawsuit immediately. Littlefield’s husband, former Councilmember Bob Littlefield, was the leader of the movement to collect signatures and put the previous Council’s Axon approval up for a citywide vote.
Borowsky, however, explained there are several questions that need answers before a potential lawsuit is filed. These included the potential for litigation to be filed by other parties and whether Scottsdale would be a plaintiff or a defendant in the final litigation.
Member Solange Whitehead said filing the notice, rather than a lawsuit, would maintain the ability for Scottsdale to negotiate with Axon to reduce the number of apartments included in the project. Axon had previously offered to lower the number of apartments but walked away from negotiations following disputes with, and between, City leaders.
Councilman Adam Kwasman said negotiations are still happening that could lead to a reduced apartment count. Axon representatives declined to comment on any negotiations.
Editor’s Note: AZBEX has covered Axon’s plans for the headquarters and corporate campus, and the controversy surrounding those plans, for more than two years across more than a dozen original articles and columns, as well as several more articles aggregated from outside sources. Our full coverage is available here.