Axon says it's no longer in talks with Scottsdale to expand its HQ

Axon goes ahead with Scottsdale HQ plans after fallout with the city

SCOTTSDALE, Ariz. - Axon ended its talks with Scottsdale regarding plans to expand its headquarters, citing a "toxic environment."

Axon President Josh Isner met with Scottsdale Mayor Lisa Borowsky on Monday, June 9 and released a statement, saying, "Unfortunately, Axon is withdrawing from negotiations with the City of Scottsdale. The internal politics of the City Council currently make it impossible to reach an agreement. I have never seen such a toxic environment in my life. We put a great deal on the table and we tried our best."

Mayor Borowsky responded by saying, "I appreciate Axon’s efforts to come to the table and engage in meaningful dialogue regarding the future of their development. Their team was willing to make concessions to their existing plan, which I appreciate. Unfortunately, there were too many hurdles to overcome in order to move an agreement forward successfully. I remain hopeful that future negotiations result in a win-win agreement that work for the community and keeps this vital employer right where it belongs — in Scottsdale."

Axon will stay in Scottsdale, and it will expand its HQ on a 74-acre lot.

It had been trying to come to some sort of agreement with the city to reduce the number of housing units it planned to build for its employees. But now, Axon says it will go back to its initial plan, which included nearly 2,000 units.

What they're saying:

"We went to the city with, you know, the intention of giving back some of what we're legally allowed to do now in an effort to move forward in a cooperative and, you know, a partnership-oriented way," Axon President Josh Isner said.

For the past three weeks, he says he's been working with the Scottsdale City Council, and all but three members were in agreement with Axon's plans.

"I have never seen such a level of toxicity. And just, you know, a level of dysfunction that I've seen in this group," he said.

The agreement with the city included building fewer apartments on the 74-acre lot. Isner says because of the internal politics of the city, they weren't able to come to a deal.

"You know, frankly, if Scottsdale residents aren't happy with the extra 500 apartments, they should address those concerns to the three obstructionists that kept this deal from getting done," he said.

The company is moving forward with the original plan approved under a bill signed earlier this year allowing the company to bypass the vote and go ahead with construction.

"The governor signed into law the state statute that allows us to build our campus, and so that is not in question. We are going to build our campus in Scottsdale, Arizona," Isner said.

He says the planning process has started, and anticipates breaking ground in the near future.

FOX 10 reached out to the three Scottsdale City Council members Isner referred to, but we have not heard back.

The backstory:

In April, Arizona Gov. Katie Hobbs approved SB1543, giving the tech giant the go ahead to expand its headquarters. She said it would provide more than 5,500 jobs and is projected to generate an estimated $38 billion in economic impact in the next decade.

On April 19, Mayor Borowsky posted to X, "I am disappointed with the way the Axon Bill has played out, culminating with the Governor signing this awful legislation—-without any discussion with representatives of #Scottsdale, knowing the impact it will have exclusively on our communities. I stand with the people of Scottsdale in opposition to the legislature’s unconstitutional overreach. The city is evaluating all legal remedies in response. We must protect the character of our community and our voters’ right to the legally obtained referendum process."

When Gov. Hobbs approved the bill, it meant major companies that build corporate headquarters in Arizona would be entitled to build housing for its employees. Axon CEO Rick Smith said he wanted to build 1,900 new apartments for its employees.

A group named Taxpayers Against Awful Apartment Zoning Exemptions (TAAAZE) were against the expansion from the very beginning.

"It’s not necessary for him to override the will of the Scottsdale voters and to basically put a thumb in their eye, when they have made it clear over the last couple of elections, both by who they elected, and by the referendums, that they don’t want another 2,000 apartments," TAAAZE's Bob Littlefield previous told FOX 10.