Arizona stands at a crossroads, and the stakes could not be higher. For decades, Axon has proudly called this state home, growing from a local startup into a global leader in public safety technology. We’ve created thousands of high-paying jobs, driven economic growth, and partnered with communities to enhance safety and security. Now, our vision to build a state-of-the-art global headquarters in Scottsdale — a project that would inject $3.6 billion annually into the Arizona economy and create 5,500 high-tech jobs — is in jeopardy.

But the threat isn’t from local opposition or environmental concerns. Instead, it’s from an out-of-state special interest group that has gamed Arizona’s outdated referendum laws to block our project. If Arizona lawmakers do not act to modernize these laws, the state risks losing not only Axon but countless other economic opportunities.

Our challenge comes from Unite Here, a California-based union with no genuine stake in Arizona’s future. After failing to pressure Axon into an agreement that would have granted them access to employee information and financial contributions, they hired a few token local politicos and launched a campaign to overturn the Scottsdale City Council’s 5-2 approval of our headquarters zoning. They’re leveraging Arizona’s outdated referendum laws to manipulate the system, delaying our project by at least two years and effectively freezing our plans until the November 2026 election.

This isn’t the first time Unite Here has used these tactics in Arizona. They have targeted other high-profile developments, including VAI Resort in Glendale and Tempe’s South Pier, and also funded the fight that led to the departure of the Arizona Coyotes NHL team. Their playbook is clear: exploit Arizona’s outdated referendum laws to obstruct economic progress and force companies into compliance.

The solution to this problem is straightforward: Arizona must modernize its zoning and referendum laws. Two critical legislative bills — SB1352 and HB2925 — would bring much-needed clarity and fairness to the state’s development rules. These bills would ensure that local communities retain a voice in development decisions while preventing outside special interests from weaponizing the referendum process for their gain.

Other states have already taken action to protect their economies from such exploitation. In 2023, Florida Gov. Ron DeSantis signed SB718, a landmark bill that prohibits the use of initiatives and referendums to challenge land development regulations. This legislation received widespread support from local governments, including the Florida League of Cities, which recognized the need for clear and predictable development rules. Florida understood the importance of protecting economic growth and acted decisively. As a result, the state now provides a stable, predictable environment for businesses looking to expand.

Florida’s proactive approach has not gone unnoticed. States like Texas are also making strides to modernize their zoning laws, creating favorable environments that attract high-tech companies. Both states have actively courted Axon, presenting themselves as  business-friendly alternatives with clear and reliable development rules. If Arizona fails to modernize its laws, those states will continue to lure away businesses and economic development that Arizona might otherwise win.

The impact of this decision goes beyond Axon. It’s about whether Arizona wants to remain competitive in attracting high-wage, high-tech employers or whether it will allow outside special interests to manipulate outdated laws, driving businesses and jobs away. This isn’t just about one company or one project — it’s about Arizona’s future as a hub for innovation and economic growth.

Our vision for Scottsdale is bold and transformative. We want to build a mixed-use, world-class campus that fosters community engagement and environmental sustainability. It will feature open green spaces, dining, retail shops, housing and a 1.5-mile running trail — all while generating billions in economic value. We’ve worked tirelessly with local leaders and community members, making significant revisions to address concerns about building heights, open space and neighborhood compatibility.

Despite this extensive collaboration and overwhelming support from Scottsdale’s City Council, Unite Here is attempting to override the community’s voice with a well-funded misinformation campaign. Their actions are not about local advocacy, they’re about power and control, using Arizona’s outdated laws as a weapon to advance their agenda.

Arizona’s lawmakers have the power to change this narrative. By passing SB1352 and HB2925, they can modernize the state’s zoning and referendum laws, ensuring a fair, transparent process that allows for community input without enabling outside manipulation.

Arizona has been home to Axon for over 30 years, and we want to keep it that way. But if the state cannot provide a clear path forward, we will have no choice but to explore opportunities elsewhere. The choice is clear: modernize the laws to foster economic growth and protect local decision-making, or allow outside interests to dictate Arizona’s future.

We urge Arizona’s legislators to act now, before more opportunities are lost to states like Florida that have already taken bold steps to protect their economies. The future of Arizona’s economy, innovation and community growth depends on it.

Rick Smith is Axon founder and CEO.