"I'd leave the state with a broken heart." Axon CEO lays out consequences if striker amendment doesn't pass.
Unanimous support and hopes for comprise as Arizona lawmakers move forward a strike-everything amendment affecting Arizona's highly popular Scottsdale.
A striker amendment passed today after a closely watched hearing filled with testimony and high-profile moments. Axon CEO Rick Smith addressed lawmakers for over 11 minutes, outlining the company’s concerns and the potential consequences if the measure failed. Committee Chair Rep. Tony Rivero emphasized the complexity of the issue and his hope for future compromise. Lawmakers and stakeholders weighed in on questions of zoning, development, and public input—culminating in a vote that could reshape how major projects move forward in Arizona.
Although the Scottsdale City Council approved Axon’s rezoning and “corporate campus” plan back in November, a signature drive pushed the final decision to voters—now set for the November 2026 ballot.
But after today’s development, that ballot initiative could soon be in jeopardy.
On an 8 ayes and 2 absent vote, SB 1543 received a Do Pass recommendation in the Arizona House International Trade Committee. It’s a strike-everything amendment to override local zoning rules in cities like Scottsdale. It would allow hotel and multifamily housing projects in light industrial zones—without public hearings or standard zoning approvals—if linked to an international headquarters campus.
What starts in Scottsdale could soon set a precedent across Arizona.
The following videos are a few highlights from today’s hearing.
ARGUMENTS IN FAVOR OF AMENDMENT SB 1543
Here are a few comments from allowed speakers in favor of the striker amendment.
Neil Giuliano | Former Mayor of Tempe, Arizona & Greater Phoenix Leadership
Mayor Jason Beck | City of Peoria, Arizona
ARGUMENTS AGAINST AMENDMENT SB 1543
Here are a few comments from allowed speakers in opposition of the striker amendment.
Michelle Ugenti-Rita | Former Arizona State Senator & Representative from Taxpayers Against Unlawful Apartment Zoning Exceptions or TAAZE
Jan Dubauskas | Scottsdale Vice Mayor
AXON CEO INVITED TO SPEAK DURING THE HEARING
Rick Smith is the CEO of Axon Enterprise. Although lawmakers insist the amendment isn’t a so-called “vendor bill,” it would significantly impact the Scottsdale-based company. Smith had the floor for more than 11-and-a-half minutes.
“The board of directors has been like, ‘Hey, Rick, we’ve been at this for 10 years. This seems like a chaotic business environment.’ We’re being approached by other states. I’ve been very transparent about that. They’re showering us with love, and praise and tax incentives. And what my board is seeing is, frankly, a lot of negativity in social media - from my own elected officials in Scottsdale. It kinda makes it hard for me to make the argument, ‘this is a safe place for us to do business.’ This has been thrown into chaos. 31 states do not allow a referendum like this for exactly this reason.”
Smith continues to explain, “So for this reason, I find myself where my board has said, ‘Rick, you gotta get this solved, in this legislative session, or you’re directed to sell the land.’ So that’s not me. So I need your help so I can keep Arizona here.”
What are the consequences if the striker doesn’t ultimately pass?
Smith says, “If we have to leave, we’re already in negotiations. We would make a profit on the land. We’d make money. But, I’d leave the state with a broken heart. And what you would get is a shipping and fulfillment center. That is the unfortunate truth of what we’re looking at here.”
Committee Chair Rep. Tony Rivero says the striker amendment idea was brought to him a couple of weeks ago. “I knew this was a difficult and complex issue,” he said. “But I believe in purpose. I believe in doing big things. And this is something I couldn’t walk away from.” Drawing on his experience as a former Peoria City Councilmember and a businessman, Rivero expressed hope that the hearing would open the door to compromise, negotiation, and consensus.
THE 8-0 AND 2 ABSENT VOTE TO MOVE THE STRIKER FORWARD
This video is the unedited final vote, accompanied by state lawmakers' explanations for their decisions.
Review SB 1543 here.
Tensions in the Weeks Ahead of Striker Amendment Hearing as Axon Targets State Lawmaker on National TV
State Representative Joseph Chaplik - a Republican from Scottsdale’s District 3 - is a vocal opponent of Axon's proposed 74-acre headquarters development near Hayden and Loop 101. He supports a citizen-driven referendum which collected 26,000 signatures to challenge the project's rezoning, effectively pausing the development until a public vote, likely in late 2026.
As State 48 News reported, Axon President Josh Isner publicly criticized Chaplik on Fox Business News, alleging a conflict of interest due to his profession as an apartment broker. Chaplik refuted these claims, emphasizing his commitment to representing Scottsdale residents' interests over corporate agendas. He also opposes legislation aimed at overturning the referendum, labeling it unconstitutional and detrimental to voter rights.
What are the greater implications of ultimate passage of strike-everything SB 1543? We talked with attorney Timothy La Sota, who represents the group behind a referendum effort to challenge Axon’s headquarters project.
Working through the PAC TAAZE, La Sota helped gather over 26,000 signatures—enough, he says, to “let the public decide to allow this massive new apartment complex.”
“We’re making special exceptions for this one single company that has basically gobbled up every lobbyist they could to lobby this bill.”
Timothy La Sota | March 25, 2025
THE MORE YOU KNOW.
State 48 News has contacted Axon multiple times via email for comment and remains open to interviewing any company representative willing to speak on the record.
We will continue to follow this developing story.