A bill making its way through the Arizona Legislature would block Scottsdale voters from voting to stop construction of 1,895 new apartments and condos. SB 1543, a striker bill sponsored by State Representative Tony Rivero (R-Peoria), would allow the TASER and body camera manufacturer Axon to build apartments for employees by its headquarters in north Scottsdale on a sprawling 70-acre campus, even though the land is not zoned for the high-density housing. Axon founder Rick Smith threatened to move his company out of Arizona if he cannot build the development near Hayden Road and the Loop 101.
State Representative Joseph Chaplik (R-Scottsdale) issued a lengthy statement denouncing HB 1543 after it passed the House International Trade Committee 8-0 on Wednesday with two members absent. He said the bill was “a brazen attempt by one man to overturn the will of voters and retroactively force 1,900 unwanted apartments on the city of Scottsdale, using legislators to do his bidding under the guise of free markets and pro-business policy. SB1543 allows companies to build multifamily units on light industrial zoned land without city council’s or residents’ approval.”
Instead, “27,000 Scottsdale voters already expressed locally by petition that they want the unwanted apartments put to a vote,” Chaplik said, referencing an effort to send the housing project to Scottsdale voters for a vote, which has obtained well over enough signatures to make the ballot. Former city councilman Bob Littlefield, who is leading the effort with Taxpayers Against Awful Zoning Exemptions (TAAZE), said in an email that Smith and his staff “have managed to persuade some state legislators from outside Scottsdale (Buckeye and Sierra Vista) to introduce legislation that would prohibit all future referendums on land use issues for all the citizens in all of the cities in Arizona!”
Councilman Barry Graham and Councilwoman Kathy Littlefield voted against Axon’s rezoning request in November. Graham said the two bills would “eliminate constitutional rights to refer rezoning decisions to the ballot” and “disenfranchise the 27,000 Scottsdale residents who signed the petition to refer Axon’s 1,900 apartments to the ballot.”
Graham told The Arizona Sun Times, “The problem with the bill is that it’s unconstitutional special legislation, legislation to benefit one company in one location, despite the massive referendum poised against it.”
The Scottsdale City Council approved of the plan in November, when there were more Democrats on the council, but the petition effort would send it to the voters for reconsideration.
However, SB 1543 would nullify any city referendum, since the legislation would be retroactive to June 30, 2024.
Opponents cite the increased traffic and blocked scenic views for people who bought their homes in part due to beautiful views. The employees make 125 percent of the median wage for that wealthy area, so it’s not like they couldn’t afford a commute. During the hearing, Graham testified, “I want to talk about when we were working with the Axon principles, they talked about how their average, how their average compensation is $200 [thousand] $300 [thousand] plus, and then they want to build a lot of apartments. But somebody making two or 300,000 plus, if that’s your average compensation, you can probably afford to live almost anywhere.”
Smith admitted the board of directors wanted more employees to work remotely a few years ago during COVID-19. The complex would become the largest apartment complex in the state’s history. The Scottsdale City Council has approved multiple controversial dense housing projects in recent years, resulting in the ouster of some of the council members who voted for them.
State Representative Alex Kolodin (R-Scottsdale) said, “It is carefully tailored to give Axon and only Axon the right to build almost 2,000 multifamily units in north Scottsdale without any regard to what the public infrastructure can support our city’s water needs and the wishes and desires of our residents. This bill has derailed the negotiation process that, at long last, was beginning to make progress, and I find that to be extremely unfortunate.”
If Axon left the state, it would result in the loss of about 1,000 jobs. Smith said the bill would allow the company to add 5,500 new jobs.
Former Arizona legislator Michelle Ugenti-Rita, who is working with TAAAZE, told the Arizona Capitol Times, “This is an election bill designed to negate the voters’ voice at the ballot box. It’s one of the worst election bills I’ve ever seen in my entire life as a politician.”
SB 1543 would require cities with populations between 200,000 and 500,000 to allow hotels and multifamily residential housing to be built in areas zoned for light industrial use without going though an application and public hearing approval process.
The legislation originally emerged with SB 1352, sponsored by State Senator David Gowan (R-Sierra Vista), and mirror langage in HB 2925, sponsored by State Representative Michael Carbone (R-Buckeye). The bills stated, “The approval by the legislative body of an application for rezoning pursuant to this section is an administrative act and is not subject to the filing of a referendum petition by a person or organization.”
Both of those bills stalled. SB 1352 passed the Senate Regulatory Affairs and Government Efficiency and Rules committees but has gone no further. HB 2925 has yet to be heard in committee.
The striker amendment was introduced on March 24, taking over a bill from State Senator Frank Carroll (R-Sun City West). It passed a House committee with a 6-3 vote.
The Arizona Progress Gazette analyzed a push-poll conducted by Axon that ostensibly found a majority of voters supported the bill. The poll said the referendum was paid for by an out-of-state union, but The Gazette said union support totaled only 2 percent. The paper also noted that Axon bought the property at a bargain since it paid the price for industrial land not zoned for apartments. In contrast, The Gazette said a poll by Data Orbital found that 65.2 percent in Scottsdale oppose the project.
The Scottsdale City Council could call a special election. City Clerk Ben Lane said it would cost the city over $600,000 however. The referendum will be on the November 2026 ballot for Scottsdale voter if the legislation doesn’t go through.
– – –
Rachel Alexander is a reporter at The Arizona Sun Times and The Star News Network. Follow Rachel on Twitter / X. Email tips to [email protected].
Photo “Scottsdale” by City of Scottsdale.
