In a special meeting on November 17th, the Scottsdale City Council approved a Memorandum of Understanding with Axon Enterprise, Inc. In a 4-3 vote, the council adopted controversial plans to expand the company’s headquarters in a compromise agreement that allows Axon to build 600 apartment units and 600 condos over two construction phases.
According to interim city communications and public affairs director Holly Peralta, the council also approved three related items on 4–3 votes: creating a new self-certification and third-party inspection program, repealing the 2024 Axon zoning ordinance, and authorizing conditional legal action tied to the ongoing TAAAZE lawsuit if Axon failed to sign the Memorandum of Understanding by Nov. 19th.
Following the vote, Axon released a public statement thanking Scottsdale Mayor Lisa Borowsky, Vice Mayor Adam Kwasman, and Councilmembers Solange Whitehead and Maryann McAllen, all of whom voted in favor of the measure.
“Thank you to Scottsdale Mayor Lisa Borowsky, Vice Mayor Adam Kwasman, and Councilors Solange Whitehead and Mary Ann McAllen for supporting a fair compromise for all parties regarding the new Axon global headquarters. And thank you to the thousands of Scottsdale residents who helped make our project better with their feedback.
We are very excited to move forward with our new headquarters. Our team will work harder than ever to deliver safe outcomes to public safety and communities alike.”
Former City Councilman and Chairman of TAAAZE, Bob Littlefield, released a statement on Tuesday condemning the decision. He wrote in part, “Mayor Borowsky and Councilmembers Kwasman, Whitehead, and McAllen – totally sold out to Axon at the expense of Scottsdale residents. They gave Axon everything they wanted, and more!”
Referring to the city’s vote pertaining to the ongoing TAAAZE lawsuit, Littlefield wrote, “There was an item on the last night’s agenda to have the city join the TAAAZE lawsuit to reverse the ‘Axon bill’ which nullified the right of referendum for Scottsdale residents. Every time this item was voted on in the past, it was defeated by the pro-Axon majority. Last night it passed, but with so many amendments, it will never take effect.”
He added, “…don’t’ let Borowsky, Kwasman, Whitehead and McAllen gaslight you into believing they voted to have the city join the TAAAZE lawsuit – they didn’t.”
In a statement released Thursday, Councilwoman Jan Dubauskas described the deal writing, “While the contract says 600 apartments and 600 condos, without a voluntary deed restriction from Axon, that split is not legally enforceable by the city. Axon can build 1,200 apartments.” She added that Axon “will be the first company in the history of the city of Scottsdale to self-certify that its building meets city code,” and will “provide no additional water to cover its use,” which appears to be affected by a repeal of Scottsdale City Zoning Ordinance No. 4658 in the MOU.
In a statement released that same day, Mayor Borowsky fired back at Littlefield, Dubauskas and TAAAZE, writing in part:
“The Taxpayers Against Awful Apartment Zoning Exemptions (“TAAAZE”) committee, led by former Councilman Bob Littlefield, ran the out-of-state, union-funded Axon referendum. Of the about 27,000 signatures gathered, a total of 25,000 Scottsdale voter signatures were paid for by a California labor union.”
She said that Councilmembers Dubauskas, Graham, and Littlefield voted against holding a referendum election in July and added, “Again, in October, I asked the City Council to hold an election at the next available date, which would have been March 2026. Again, those same Councilmembers refused to listen to reason and said, ‘no.’”
She continued, “…Accordingly, we were left with only two choices:
File a lawsuit against the flawed Axon legislation, only to have Axon go back to the legislature to fix SB1543, neutering TAAAZE’s and the City’s legal claims and further nullifying the referendum election, leaving Axon free to build 2,000 apartments or more; or
Strike a compromise to reduce the number of units and project density.”
The mayor effectively laid the blame for the present compromise on the three councilmembers, writing, “Delaying the election cost us our right to vote on the Axon project and resulted in the city being stuck with SB 1543.”
She concluded, “I promised the voters to oppose high-density apartments. In keeping with my promise, I negotiated a major reduction of density, down from 2,000 apartments to 600 apartments and 600 condominiums. Importantly, TAAAZE representatives agreed to resolve the entire dispute if Axon agreed to build 500 apartments and 1,000 condos. In the end, my negotiations with Axon resulted in a much lower overall density than TAAAZE’s last demand.”
The controversy surrounding Axon’s headquarters expansion has reportedly prompted Scottsdale Mayor Lisa Borowsky to call residents to a public town hall. During the meeting, Borowsky will take questions directly from Scottsdale citizens in an open Q&A format.
The event, set for Wednesday, October 29, at 5 p.m. at the Mustang Library in Scottsdale, is intended to “foster accountability and direct dialogue between the mayor and her constituents,” according to Borowsky.
“This town hall is about transparency and accountability,” Borowsky said in a statement. “I want to hear directly from residents. Your questions, concerns, and ideas matter acutely as I fight to put the interests of Scottsdale first.”
The mayor’s office is encouraging attendees to come prepared with their questions, which they’ll have the chance to pose directly to the mayor. Mayoral staff and volunteers will be available as well to offer background information and updates on various topics in an effort to ensure a well-rounded discussion.
The public event is slated to run from 5 p.m. to 6:30 p.m., providing Scottsdale residents a focused opportunity to get unfiltered insights from Borowsky on matters affecting the community. The announcement, shared via the city’s social media channels, has already sparked online chatter, with some using the platform to press for clarity on hot-button issues likely to surface at the town hall.
#Scottsdale Mayor Lisa Borowsky is hosting a public Town Hall at 5 p.m. Wednesday, Oct. 29 at the Mustang Library, 10101 N. 90th St. https://t.co/vcTm2aZFZr
Bob Littlefield, a former city councilmember, took to X to highlight divisions over a proposed city lawsuit against state Senate Bill 1543—dubbed the “AXON bill” for its push on affordable housing developments. Littlefield, who supports joining the suit, called out Borowsky and Councilmembers Whitehead, McAllen, and Kwasman for voting against it, despite polls showing 70% of Scottsdale voters favoring the defeat of the project.
The next milestone in our lawsuit against the state to defeat SB1543, the "AXON bill," is November 7th. That is the deadline for the City to join the TAAAZE lawsuit against the "AXON Bill" which nullifies the referendum signed by almost 27,000 Scottsdale residents against this…
“The issue is on Tuesday’s City Council agenda so hopefully Borowsky, Whitehead, McAllen and Kwasman will see the light and vote with their constituents,” he wrote. The post underscores the transparency themes Borowsky is championing, potentially setting the stage for some tense Q&A exchanges to come.
As previously reported by AZ Free News, the City of Scottsdale could be moving toward shortening the timetable for a referendum on the Axon Headquarters project, or on the city’s reaction to the lawsuit from Taxpayers Against Awful Apartment Zoning Exemptions (TAAAZE).
Adding potential fuel, the local advocacy group Scottsdale Voter questioned Borowsky’s recent appointment of Lamar Whitmer as chief of staff. In a post to X, the group labeled him a “failed real estate developer” and “polarizing” figure. Such scrutiny could amplify resident concerns at the town hall.
We asked AI about Lamar Whitmer, Mayor Borowsky's new Chief of Staff to Terrance Thornton and Susan Wood:
❌Failed real estate developer ❌Polarizing and controversial ❌Indicted for pocketing public funds in the 90s ❌Threatened Councilor Kwasman with recall ❌Reported… pic.twitter.com/Y1dEkR0tcV
Scottsdale’s new City Manager Greg Caton has drawn heavy criticism following the resignations of former City Manager Jim Thompson, former Public Works Director Dan Worth, former Transportation, Assistant City Manager Bill Murphy, and Streets Director Mark Melynchenko. As reported in the Scottsdale Progress, former City Councilwoman Linda Milhaven accused Caton of “creating chaos,” and added that “it’s uncharacteristic for an interim city manager to be letting people go or making changes.”
“(Caton) got to work pretty fast firing people,” Milhaven speculated. “It had to be at the direction of the City Council.”
Concern over turnover seems to be consistent in members of the previous left-leaning City Council, with incumbent Councilwoman Solange Whitehead expressing as much saying, “This year under the new council majority, we’ve lost 100-plus years of experience. These are the people who have delivered for Scottsdale. And people are continuing to leave. For me, this is a top concern.”
Both Whitehead and Councilwoman Maryann McAllen voted against the conservative majority when they approved Caton’s appointment on April 15th.
Scottsdale's divided City Council hired Greg Caton in a contentious April vote. He has built a reputation as an aggressive changemaker, exactly what the new council majority wants. But now Caton has a test: Can he win over the minority side too? https://t.co/LRkEzcTVB1
Councilman Barry Graham, one of the newly elected conservative members, denied the notion outright telling the Progress, “That’s not true. I only discuss city performance and results” with the city manager,” Graham clarified. “I don’t discuss people.”
When asked during an interview with the Progress, Caton told the outlet that “Dan Worth retired, ” adding, “I did not ask him to submit his resignation.” He continued, “I did not ask anyone to retire or resign.” However, Dan Worth contested this, telling the publication that Caton “directed me to resign or retire,” and declined to comment when asked if the move was “politically motivated.”
Vice Mayor Jan Dubauskas also expressed support for Caton saying, “Greg makes independent decisions. I happen to agree with many of them.” Dubauskas noted to the Progress, “Cost overruns and road diets were high profile issues in the community, so I’m not surprised Greg had concerns about them.”
Explaining the staffing turnover, Caton told the outlet that he discussed plans for ‘flattening’ the city’s organization. “In conversations with (Worth and Melynchenko), I discussed future plans to make changes to the organization – the ‘flattening’ we have referred to,” he said.
“Given that those future changes would affect their positions, both Dan and Mark opted to retire,” he added. “The agreements we signed are evidence of our mutual desire to determine what that transition would look like.”
Caton is remembered by Southern Arizonans as the Town Manager for Oro Valley from 2012 until he stepped down from the role to take a City Manager role in Colorado in 2016.
On Tuesday, the Scottsdale City Council voted 5-2 to ensure that merit-based hiring, evaluation, and promotion replaces “unlawful and anti-meritocratic forms of discrimination,” and that the use of city funds for diversity, equity, and inclusion (DEI) cease.
Despite the protests of 45 activists, along with current and former city employees, the vote carried with the newly elected council members and mayor acting on the mandate voters gave them in November.
The council also voted 5-2 to enact an ordinance requiring all city employees to return to in-person work. In both votes, Councilwomen Maryann McAllen and Solange Whitehead dissented. Mayor Lisa Borowsky voted with the majority. According to the text of the City Council Meeting Agenda, the new Ordinance No. 4662 will:
“1. Ensure city employees are hired, evaluated, and promoted based on merit, protecting City of Scottsdale employees from unlawful and anti-meritocratic forms of discrimination, and ensuring that residents and taxpayers are served by the most qualified city employees.
2. Discontinue the use of city funds for Diversity, Equity, and Inclusion (DEI) systemic programming, to include the Office of DEI, DEI programming and trainings, and other initiatives that could arguably violate A.R.S. § 41-1494. Training and prevention of unlawful discrimination remains encouraged and shall continue.
3. Direct the City Manager, or designee, to reassign the Diversity Program Director and ADA/Title VI Compliance Coordinator to an appropriate department and position; reflect these changes in the city’s organizational chart; and make the necessary budget transfers and amendments necessary to carry out the intent of this Ordinance.”
Councilman Adam Kwasman, a supporter of the ordinances, stated that equity needs to be removed from government because “it infers that equal justice under the law cannot exist. … It imposes a racial hierarchy predicated upon a narrative of past injury at the cost of equality.” Kwasman has been a prominent voice decrying the public being “bombarded with DEI” by the city.
You can’t walk into Scottsdale City Hall without being bombarded with DEI. This poison will be rooted-out of our beautiful city. No matter one’s race, orientation or creed, we value content of character. pic.twitter.com/dho2n4OU7a
Two members of the council attempted to forestall the vote by calling for a work study to be completed, examining the city’s DEI practices. However, this attempt was voted down.
Kwasman addressed the City Council and the activists in attendance by pointing out that the city’s compliance with the Americans with Disabilities Act would not be affected nor would the city’s stance on anti-discrimination practices,
“Tonight, there is a purposeful conflation between intentions of those who do not believe in certain government programs and those who have a heart that’s aimed true and caring toward a diverse crowd. Toward somebody, toward a diverse community, to belief in equity, to a belief in inclusion because the definitions of diversity, equity, and inclusion are wonderful. They’re wonderful. Nobody questions it. Diversity brings together people from different backgrounds and different viewpoints. It enhances decision-making. It prevents group think.
“Equity is a centuries-old concept of law. It boils down to treating people fairly. And who could object to making people feel welcome where they live and work? You’re doing a good job. The problem, the problem is where the rubber meets the road. The problem is that DEI, as practiced here and elsewhere, it runs policies through the lens of race and sex and other identity categories. It actively prevents… it actively prevents diversity of viewpoint. It subverts equal opportunity in favor of an artificial equality of outcome. It excludes those believe whose beliefs diverge from a narrow orthodoxy.
“Companies, as of today, that have moved away from DEI include the following, as of today: Disney, GE, PayPal, Comcast, Amazon, Bloomberg, McDonald’s, Walmart, Lowe’s, Ford, Jack Daniels, which I think we all need one after tonight, Harley-Davidson, and John Deere.
“Scottsdale must be a city where all are welcome…to build a future and a flourishing future for themselves and their families, a place where everyone is treated equally and fairly under the law. This ordinance does not get rid of our ADA compliance, nor does it get rid of our anti-discrimination ordinance. And I stand with the Mayor when she stated that if there is ever an instance of discrimination in this city, I will stand shoulder to shoulder along with everybody on this dais to fight discrimination.”
WATCH THE MEETING:
The ordinance will directly impact two city roles: the city ADA coordinator, whose office would be relocated, and the Diversity Director, who may be reassigned.
