Scottsdale — The City Council on Nov. 17 approved a memorandum of understanding (MOU) with Axon Enterprise over objections from residents and environmental advocates, voting to reduce the project’s residential component and to link litigation steps to the company’s signature on the agreement.

The council adopted Resolution 13567 authorizing Contract No. 2025‑195‑COS with Axon, amended to cut the total residential units to 1,200 — 600 apartments and 600 condominiums — and to phase the buildout so the first phase will include 500 apartments and 100 condominiums, followed by a second phase of 100 apartments and 500 condominiums. The council also approved an ordinance to create a self‑certification/third‑party inspection program limited to qualified international headquarters campuses.

Why it matters: The MOU was presented as a negotiated alternative to the blunt outcomes the council said would follow from state law and pending litigation. Supporters argued the agreement preserves jobs and brings infrastructure and amenities; opponents warned it strips public oversight, reduces water commitments and shortchanges affordable housing.

What the MOU and related votes do
- Unit mix and phasing: Vice Mayor Adam Kwasman moved the motion to adopt the MOU as amended, limiting the project to 1,200 units (600 apartments/600 condominiums) and specifying a two‑phase buildout (500 apartments/100 condos in phase one; 100 apartments/500 condos in phase two). The motion was seconded and passed on a voice vote. City staff were authorized to make conforming edits to the contract language.

- Self‑certification ordinance: Council adopted Ordinance No. 4697 to permit licensed architects and engineers to certify plans and inspections for eligible world‑headquarter campuses. City staff said the ordinance includes city oversight, audit rights and enforcement mechanisms; council removed an erroneous sunset clause from the ordinance language during debate.

- Zoning repeal and referendum: Council also acted on a related ordinance to repeal the prior rezoning (Ordinance 4658) that had been the subject of a citizen referendum petition. Councilmembers debated legal risks — including whether a repeal plus state law would still permit high‑density housing and whether the action could create takings exposure — and made the repeal contingent on additional assurances from Axon.

- Litigation contingency: The council authorized the interim city attorney to file counterclaims or third‑party claims in Taxpayers Against Awful Apartment Zoning Exemptions v. State of Arizona and City of Scottsdale (CV 2025‑034961) unless Axon signs the MOU and delivers a Prop 207 waiver by the close of business on Nov. 19, 2025. Vice Mayor Kwasman made the motion; the item passed after council debate.

Arguments for and against
Supporters said the compromise protects local control and preserves Axon as a major employer. Vice Mayor Kwasman told the council he had "so much appreciation" for staff and negotiators who put the package together and argued the MOU offered an achievable, locally negotiated outcome in light of state law.

Residents and several commenters pushed back. "The structure of the MOU protects Axon, not the public," said resident Andrew Wollman during public comment, calling the self‑certification program an outsourcing of permitting. Resident Gail Golik pressed the council on water, saying the MOU "eliminates Axon’s only water obligation" — a reference to an earlier development requirement for 3,000 acre‑feet of storage credits that staff confirmed is not in the revised MOU and that prompted repeated council questions about a 100‑year assured water supply under ARS 45‑5‑76.

Legal and process notes
City Attorney Luis Sante told the council that where a contract contains offer, acceptance and consideration, it can be binding — and said the MOU was drafted with that structure. He also confirmed the self‑certification program is limited in scope to world headquarters campuses and that the council may repeal or amend prior zoning ordinances. Councilmember Barry Graham asked whether internal city staff were comfortable with some elements of the self‑certification approach; the city attorney and manager said staff had raised concerns but that safeguards and oversight provisions were included.

What’s next
Axon has until the close of business on Nov. 19, 2025, to sign the MOU and deliver a Prop 207 waiver required by the council’s conditional litigation authorization. If Axon does not meet that deadline, the city instructed its attorney to pursue the authorized litigation options. The MOU and implementing ordinances will also be finalized by staff edits authorized by the council; further permitting and development review processes remain ahead.