Editor’s note: This article was updated with new quotes and information on 6/13/2025.

Key Points:

• Axon ended negotiations with the city of Scottsdale

• Company intends to stay in the city

• Scottsdale Mayor Lisa Borowsky said there were too many hurdles to overcome in negotiations

Axon has withdrawn from negotiations with the city of Scottsdale over the size of its new global headquarters, but the company still intends to stay in the city.

The company and the city engaged in negotiations after Gov. Katie Hobbs signed a law in April paving the way for construction of a sprawling headquarters in north Scottsdale near Loop 101 and Hayden Road.

The original plans called for about 1,900 apartments and condominiums, a hotel and retail integrated into the facility. About 30% of the apartments would be allocated for workers.

The number of apartments and the density of the project became a point of contention among city officials and those who opposed the project, as well as a topic of negotiation between the company and the city. 

Axon President Josh Isner said the company was willing to reduce the number of apartments to about 850 units, as well as potentially build a performing arts center the community could use in the evenings.

Isner released a statement on June 9 blaming city officials for creating a “toxic environment” during negotiations after the company put a “great deal on the table” and tried its best to work with the city.

“The internal politics of the City Council currently make it impossible to reach an agreement,” Isner said in the statement.

Scottsdale Mayor Lisa Borowsky said in a statement there were too many hurdles to overcome in order to successfully move forward with an agreement.

“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,” Borowsky said. “I remain hopeful that future negotiations result in a win-win agreement that (works) for the community and keeps this vital employer right where it belongs — in Scottsdale.”

Councilmember Adam Kwasman said on X that Axon’s concessions were generous and would’ve benefited Scottsdale and Arizona as a whole.

“I am saddened that my colleagues could not share in a vision that would have reduced approved density, reduced approved apartments, funded police, and built an incredible partnership between the city and one of America’s best companies,” he said.

Isner blamed Vice Mayor Jan Dubauskas, and Councilmembers Barry Graham and Kathy Littlefield for “politically terrorizing” the mayor, who has bickered with the council over separate issues in recent months.

“This is like ‘Game of Thrones’ stuff that is happening at the city right now,” Isner said in an interview.

Although the law allowed Axon to move forward, the company still wanted to negotiate with city officials in order to maintain a good relationship with the council, Isner said.

The company was willing to “give back some of what we already have, if it means we can move forward without a bunch of BS, without a bunch of politics, without the city playing games,” he said.

Graham said in a statement that the city is open to negotiations but voters should decide the fate of the project.

“We’re always willing to sit down with stakeholders, but it’s important that Scottsdale residents get a say in the ballot referral that 27,000 voters signed,” Graham said.

Dubauskas and Littlefield didn’t respond to a request for comment.

The Scottsdale City Council initially approved zoning for the project in November, although the majority of the current council members took office after the approval. 

Once the zoning was approved, a group called Taxpayers Against Awful Apartment Zoning Exemptions, or TAAAZE, collected enough signatures to send the measure to the ballot after some residents expressed opposition to the project.

After the legislation was approved in April allowing the company to bypass the ballot measure, TAAAZE filed a referendum application to send the law to the ballot. The group is also examining the possibility of taking legal action.

“It’s really hilarious to see Axon claiming that they have been a good neighbor,” said TAAAZE Chairman Bob Littlefield, who is a former Scottsdale City Council member and Kathy Littlefield’s husband. “They’ve been pushing us around, or trying to push us around, so we’re going to continue to fight.”

The City Council also voted last month to hire a lawyer at a cost of up to $100,000 to examine the constitutionality of the law.

Despite the continued opposition, Isner said Axon would still be open to negotiations in the future but he’s skeptical about that possibility with the current council.

“The problem is the dynamics on the council. Unless there’s some major character overhaul here, there’s still going to be the same crappy dynamics,” he said. “But, of course, the door is always open to talk and listen.