[0:05] >> we'll go ahead and get [0:06] started. [0:10] I'd like to call the [0:11] NOVEMBER 17, 2025 special [0:13] meeting and possible executive [0:14] session of the scottsdale city [0:15] council to order. [0:17] City clerk ben lane, can you [0:19] please do our roll call. [0:20] Clerk ben lane: [0:20] mayor lisa borowsky. [0:22] Mayor borowsky: present. [0:22] Clerk ben lane: vice mayor adam [0:23] kwasman. [0:25] Vice mayor kwasman: [0:25] here. [0:26] Clerk ben lane: councilmembers [0:26] jan dubauskas. [0:27] Councilmember dubauskas. [0:28] Here. [0:29] Barry graham. [0:30] Clerk ben lane: barry graham. [0:32] Councilmember graham: [0:32] here. [0:32] Clerk ben lane: kathy [0:33] littlefield. [0:33] Councilmember littlefield: [0:34] here. [0:34] Clerk ben lane: maryann mcallen. [0:35] Councilmember mcallen: [0:35] here. [0:35] Clerk ben lane: solange [0:36] whitehead. [0:36] Councilmember whitehead: [0:36] here. [0:37] >> clerk ben lane: city manager [0:37] greg caton. [0:39] >> greg caton: present. [0:40] >> clerk ben lane: interim city [0:42] attorney luis santaella. [0:45] >> luis santaella: here. [0:47] I'll note that city more greg [0:49] cation just walked in. [0:50] >> clerk ben lane: city [0:50] treasurer sonia andrews. [0:54] >> sonia andrews: here. [0:55] >> Clerk Ben Lane: and the clerk [0:57] is present. [0:57] >> Mayor Borowsky: we have a [0:58] possible executive session to [1:00] can you tell me with the city's [1:01] attorneys for legal advice and [1:04] consider the city's position [1:08] regarding the taxpayers against [1:11] awful apartment zoning [1:12] exemptions, versus state of [1:14] arizona and all other matters [1:18] related to senate bill 1543 and [1:21] development agreement no. 2020- [1:25] 2020-138-cos, including [1:26] amendments. [1:28] And to -- also to address a [1:29] proposed memorandum of [1:30] understanding between the city [1:34] and axon. [1:37] And the proposed ordinance no. [1:40] 4697 related to a [1:41] self-certification and [1:43] third-partied certification [1:44] program. [1:45] And for legal advice related to [1:47] all these items. [1:48] Why can I -- at this time I'll [1:51] entertain a motion -- to enter [1:53] into executive session. [1:54] >> so moved. [1:55] >> second. [1:56] >> Mayor Borowsky: all those in [1:57] favor, please indicate your [2:00] vote. [2:02] We will now recess into [2:03] executive session. [2:05] And be back when we're finished, [2:11] thank you. [5:38] >> Mayor Borowsky: we've wrapped [5:39] up our executive session and at [5:41] this time we are reconvene [5:42] ing the [5:46] special council meeting for the [5:48] record most of the council is [5:48] here. [5:50] I saw barry here. [5:51] We are all here. [5:53] And the charter officers are [5:55] also in attendance. [5:59] So moving on to item no. 2, for [6:02] consideration, a memorandum of [6:05] understanding [6:09] forthe axon world headquarters [6:11] campus. [6:14] authorizing contract no. 2025- [6:17] 2025-197-cos, a memorandum of [6:19] understanding between the city [6:21] and axon enterprise. [6:23] The mou outlines the terms for [6:25] development of axon's [6:27] international headquarters [6:28] campus, including a reduction of [6:30] the total number of residential [6:33] units previously approved from [6:36] 1882 apartment -- 1,882 [6:39] apartments to 750 apartments, [6:44] and 750 condominiums for a total [6:47] of 1500 residential units. [6:49] Why which will include phased [6:50] construction of office, [6:52] manufacturing, hotel and [6:54] residential components. [6:56] Affordable housing provisions, [6:57] infrastructure commitments, [6:58] including roads, trails and [6:59] utilities. [7:03] Access to a real-time crime [7:05] center, and use of a third party [7:07] permitting and inspection [7:08] process. [7:10] We do have some speakers on [7:10] this. [7:12] So I'm going to go ahead -- [7:13] first we'll hear from our city [7:15] attorney, who will give us a [7:23] brief presentation on this. [7:24] >> Acting City Atty. Santaella: I [7:29] f I could please get the elmo. [7:31] Thank you. [7:32] Honorable mayor and members of [7:34] the city council and members of [7:37] the public, I'm the interim city [7:38] attorney, and I'm going to speak [7:39] briefly on the items that are [7:42] being considered this evening. [7:44] The first item that's being [7:46] considered this evening is the [7:48] mumim of understanding, an [7:51] agreement between axon, inc., [7:54] and the city of scottsdale. [7:59] And it outlines a proposal where [8:01] axon would do certain things and [8:03] the city would do certain things [8:03] things. [8:06] and it involves the development [8:07] vacationon's international [8:08] headquarters, located here in [8:11] the city of scottsdale. [8:13] The mmu include phased [8:14] construction of the office, [8:16] manufacturing, hotel and [8:18] residential components, their [8:19] infrastructure commitments such [8:21] as a dog park, roads and trails [8:25] and utilities that axon is [8:26] promising to do. [8:29] There's some affordable housing [8:31] provisions, access to a [8:32] real-time crime center for [8:34] the scottsdale police department [8:37] department, and it also involves [8:39] certain other conditions. [8:41] One of the biggest things about [8:43] this particular proposed mou if [8:45] adopted is the number of units. [8:48] Previously approved axon was [8:51] authorized 1,882 units. [8:54] Under the agreement, they would [8:55] be changing the number of units [8:58] that they're doing to 750 [9:00] apartments and 750 condominiums [9:04] for a total of 1500 units. [9:07] Of those units, 38 units will be [9:07] dedicate [9:09] dedicated as affordable housing [9:11] and the construction would be [9:12] phased. [9:15] Meaning that 375 of the [9:17] apartments and 375 of the condos [9:20] would be deferred until after [9:23] JANUARY 1, 2030. [9:26] They would begin the [9:29] headquarters building sooner [9:32] than later, before the ancillary [9:32] stuff. [9:35] In addition to the mou itself, [9:36] there are two ordinances that [9:38] are related to the mou that [9:40] would be agreed upon if the mou [9:41] passes. [9:46] One is a self-certification and [9:47] third party certification [9:48] program. [9:49] This type of progra is [9:51] authorized by state law and a [9:53] city can limit who this type of [9:55] ordinance applies to. [9:58] In this case only world [10:00] headquarters campuses. [10:01] Right now there's only one world [10:03] headquarters campus within the [10:04] city of scottsdale, and there's [10:06] only a couple of other parcels [10:08] within the city that could [10:09] possibly fit that definition. [10:12] So it's very limited. [10:14] Under the self-certifying [10:15] ordinance or third party [10:17] certification program, it would [10:19] allow licensed engineers and [10:21] architects to basically certify [10:23] the plans, conduct the [10:25] inspections, and make sure that [10:28] axon is building and developing [10:30] the property appropriately and [10:34] properly. [10:39] The third part of this -- or the -- is the repeal of the [10:41] zoning ordinance. [10:44] Right now, as we all know, the [10:46] current zoning -- has been [10:48] referred, so it's kind of been [10:50] suspended until there's a [10:51] referendum. [10:52] This would repeal the current [10:54] zoning to what axon had before, [10:57] which is basically light [10:57] industrial. [11:00] The entire mou is predicated on [11:04] the idea that sb1543 the [11:06] international headquarters, [11:08] state statute is lawful. [11:10] The final thing that the council [11:13] MAY be considering tonight is an [11:17] item to authorize me, or my [11:18] designees to file appropriate [11:20] counter claims, cross-claims or [11:22] third-party claims in the matter [11:24] of taxpayers against awful [11:25] apartment zoning exertions [11:26] versus state of arizona, city of [11:27] scottsdale. [11:28] That's a lawsuit that axon is [11:30] not involved in, but obviously [11:34] because it involves sb14 -- [11:40] excuse me, sb1543 it has [11:41] repercussions for this mou and [11:41] for the development. [11:42] With that, I'll take any [11:45] questions from the city council. [11:51] >> Mayor Borowsky: thank you. [11:55] Advice mayor kwasman. [11:56] >> Vice Mayor Kwasman: thank [11:58] you, MADAM Mayor, and I really [12:02] want to -- I want to just say, I [12:04] have so much appreciation for [12:05] you, MR. City manager -- [12:07] MR. City manager and MR. City [12:10] attorney for all you have done [12:16] to help put this all together in [12:18] such a short time. [12:19] Having been an attorney for a [12:22] decade and seeing deals put [12:23] together, rarely are they this [12:25] comprehensive with this time [12:32] frame that it something to be [12:34] extremely proud of. [12:37] I also want to thank -- I want [12:40] to thank axon, who has come to [12:44] the table in a way that is -- [12:49] there's a yiddish word, [12:49] mensch-like. [12:53] You came in with real terms and [12:56] whatever happens at this vote, [12:59] this afternoon, is a -- it's -- [13:03] it is a reflection -- it's not a [13:06] reflection on -- it's not a [13:08] reflection on the negotiations [13:09] that took place. [13:10] I think it's really important. [13:15] I just want for everybody [13:16] listening, whether they're going [13:19] to see this tomorrow or today, [13:21] I'm going to do my very quick [13:22] ben shapiro impression and get [13:24] to where we are now. [13:26] So all right, folks, let me just [13:28] give you a little background. [13:30] Last DECEMBER former council got [13:33] us to roughly 1900 apartments. [13:36] Referendum succeeded getting [13:38] signatures, puts it on the [13:39] ballot. [13:43] The 1543 was passed, okay, which [13:48] then allows those businesses [13:50] that axon would qualify under to [13:54] not be subject to referendum, [13:56] lawsuit ensued, okay, but I want [14:02] to be very clear, under 1543 and [14:04] under the development agreement, [14:06] 1900 apartments would be [14:06] allowed. [14:06] Okay. [14:10] If we had a referendum today, if [14:12] somebody paused and we had a [14:14] referendum today and axon won [14:16] the development agreement holds [14:18] and it's roughly 1900 apartments [14:19] apartments. [14:21] If it was held today and axon [14:24] lost, axon's property becomes [14:26] reevaluated -- it gets [14:28] reclassified as light [14:30] industrial, and therefore 1543 [14:33] holds and they get to build 1900 [14:33] apartments. [14:36] There is no difference, those -- [14:37] anybody telling you that the [14:39] voice of the people is not being [14:40] heard, guess what your outcome [14:42] has already been decided by the [14:43] state legislature. [14:46] If axon wins the referendum, [14:46] 1900. [14:49] If axon loses the referendum, [14:50] 1900. [14:52] That's the law. [14:55] So the question is then, is that [14:57] then going to -- they say wait, [14:58] the law is being challenged, [15:01] there's a lawsuit during, okay? [15:02] Now, here's where I can speak to [15:06] as a litigator and as a former [15:09] legislator. [15:11] I have seen special legislation [15:13] challenges being brought in [15:16] front, in front of the -- in [15:17] front of the state supreme court [15:19] and have seen successes and [15:21] failures, but what gets to [15:23] happen there is the state [15:25] legislature gets a second crack [15:27] at I see this and so in any [15:29] complaint, you have to list the [15:31] issues that they feel is [15:32] unconstitutional. [15:34] And the legislature now has a [15:36] list of things that they could [15:40] use to amend the legislation. [15:41] Now, I have been around, I have [15:42] been around as long as some of [15:44] these people in this audience, [15:46] but been around long enough to [15:47] know that legislatures don't [15:49] like to be overruled. [15:51] And I promise you, that the [15:53] amount of votes it took to get [15:55] over the hump to get the first [15:56] piece of legislation through, [15:57] they are willing to make the [15:59] amendments to make sure it's [16:00] legal, nobody wants to be the [16:02] one who is holding the ball and [16:04] be declared unconstitutional by [16:05] a state supreme court. [16:06] And that's what brought us to [16:07] this moment. [16:14] So the idea is what can we do to [16:16] make sure that we listen to [16:23] residents, don't have 1900 units -- 1900 apartments, what [16:26] can we do to make sure that we [16:28] bring a resident first approach [16:30] that is a compromise that is [16:33] mature, that is realistic, that [16:36] served all parties, and makes [16:40] sure that we don't get overrun [16:44] by a state supreme court and a [16:46] state legislature? [16:49] And that was the impetus behind [16:52] this compromise and this mou. [16:54] Only good intentions that was [16:58] then borne out to be good [17:00] compromise and a good final mou [17:02] that we have here today. [17:06] Those at this dais might want to [17:08] tell you reasons that they vote [17:10] no today, but the fact of the [17:14] matter is, is that as recently [17:19] as three weeks ago, we had -- we [17:22] had a majority approving this. [17:23] This language specifically, [17:25] which is why we printed it out [17:26] this way. [17:28] If we didn't have a majority [17:30] approving this, I wouldn't have [17:32] put pen to paper. [17:35] So the proof is in the pudding. [17:36] Using a alliteration here. [17:39] Just the facts, I respect my [17:41] clients and their votes, I [17:42] respect everybody who came to [17:45] the table, and arizona was just [17:48] rated no. 22 for jobs in this [17:50] country -- I'm sorry, as a state [17:53] in this country, no. 22, and if [17:57] we don't do what we need to do [18:00] to create a regulatory [18:02] environment not to be [18:04] corporatist, but to have stable [18:07] rules with a regulatory [18:09] environment that does not crush [18:12] entrepreneurism, then free [18:13] enterprise is going to go [18:14] elsewhere. [18:15] They already are. [18:18] This is our chance to make sure [18:22] that we revive and recover a [18:24] regulatory environment that I [18:26] consider extremely conservative, [18:27] extremely free market and make [18:30] sure that we have stable rules [18:32] so the entrepreneurs can go as [18:35] far as their GOD-given talents [18:36] take them and hire incredible [18:37] people. [18:39] With that, MADAM Mayor. [18:40] >> Mayor Borowsky: thank you, [18:41] COUNCILWOMAN Whitehead. [18:42] >> Councilmember Whitehead: woul [18:43] d it be possible to have the [18:45] public speakers come up before [18:50] the rest of us speak. [18:52] >> Mayor Borowsky: absolutely. [18:53] Exact same thing, this could [18:55] turn into a long discussion. [18:57] So let's have andrew wholeman [18:59] followed by barbara burns and [19:18] dan isaac. [19:21] >> anybody know how to turn this [19:40] on? [19:43] Sorry. [19:46] I'll leave that part of it. [19:49] Here we go, got it. [19:51] Good evening. [19:54] Mayor, council members, before i [19:57] get started, did anybody notice [19:59] the smell in the room? [20:01] It's -- I don't think it's the [20:03] room, I think it's the process [20:05] because something really stinks [20:05] here. [20:08] Because when a deal arrives this [20:09] polished, coordinated and [20:10] insulated after weeks of [20:13] executive sessions, the odor [20:14] isn't subtle. [20:16] It's the smell you get when [20:17] transparency has been sealed in [20:20] a back room for too long. [20:22] We have been told this mou is [20:25] merely an administrative act, [20:28] that label isn't legally -- is [20:30] an illegal necessity, it's a [20:32] legal strategy, calling this [20:33] administrative shields it [20:34] against another referendum. [20:37] That it is not a coincidence, [20:39] that's a plan. [20:40] And the clearest sign this [20:41] agreement wasn't shaped by [20:43] scottsdale is it was shaped by [20:44] axon. [20:46] You can see the fingerprints [20:47] everywhere, the structure, the [20:49] mou protects axon not the [20:49] public. [20:51] The foundation shows outside [20:53] influence in places the public [20:56] is not allowed to be. [20:57] When binding development terms, [21:00] zoning reversals, infrastructure [21:01] commitments and oversight [21:03] transfers are negotiated out of [21:06] public view, then returns as a [21:07] prepackage [21:09] ed inevitability, [21:11] that's legislative action hiding [21:13] under another name. [21:16] The self-certification ordinance [21:17] doesn't streamline anything, it [21:19] outsources the city's own [21:20] permittings and inspection [21:21] authority to a private [21:22] corporation. [21:24] Axon will pick its own [21:25] inspectors, issue its own [21:27] certificate, interpret its own [21:29] compliance, and no other [21:31] developer has ever been issued [21:32] this power. [21:33] It's ridiculous. [21:34] Placing a litigation item last [21:37] on the agenda is not an [21:37] accident. [21:40] The mou passes, first, the [21:41] referendum becomes moot. [21:43] That's not democracy, that's [21:46] gaming the order of provisions. [21:48] You're negotiating residential [21:49] entitlements in the middle of an [21:51] active regional water crisis, [21:52] with the arizona department of [21:56] water resources already halting [21:56] groundwater dependent [21:58] developments thousands of them [22:01] and out of 1500 units, we are [22:03] only allowing 38 affordable [22:04] housing units. [22:06] That's the bare minimum required [22:08] by law, is that a good citizen [22:11] of scottsdale, I don't think so. [22:12] Ethical government requires [22:14] transparency, independence, [22:16] fairness and meaningful public [22:17] participation, none of those are [22:18] visible tonight. [22:20] Please take the garbage out, [22:22] give the city a process that [22:24] doesn't smell like it was cooked [22:25] weeks ago. [22:27] And one other thing, I'd like to [22:29] say, I'm a resident 40 years in [22:32] the city, and it is shameful [22:34] that axon takes the seat of [22:36] people who actually live in this [22:39] city and makes us stand while [22:41] you come early on buses paid by [22:44] your employer so that we have to [22:45] stand. [22:46] That is showing you how good of [22:48] a citizen your company is. [22:51] I would welcome axon here to be [22:53] honest, but I am concerned the [22:56] way they behave and I don't want [22:58] the apartments, if there were [23:01] 400 apartments, 4 employees, [23:03] guaranteed a low rate, you all [23:04] deserve a good apartment rate, I [23:07] would be 100 percent behind that [23:07] that. [23:09] This has nothing to do with [23:10] employee housing or apartments, [23:13] it whats to do with a plate of [23:15] multi-family residential [23:17] development, restaurants, a [23:19] hotel, it has nothing to do with [23:22] axon's actual primary business. [23:22] >> Mayor Borowsky: thank you. [24:25] Barbara burns. [24:27] Westworld, tpc and the [24:29] championship golf course, the [24:32] princess hotel, hyatt at gainy [24:33] ranch, scottsdale stadium [24:36] rebuild and many others. [24:38] All the projects had significant [24:44] citizen opposition we spent [24:46] hours listening to people, [24:48] residents, but the various [24:50] councils held firm in their [24:52] beliefs and the -- that the [24:54] projects had enormous economic [24:56] development opportunities for [24:57] the city. [25:00] That would reach far into the [25:02] future and today we are able to [25:03] see that they were right on [25:05] target. [25:08] And it took a lot of bravery and [25:10] courage to approve those [25:11] projects. [25:14] I consider axon as the signature [25:16] project category. [25:18] And as important, the city [25:20] should not be allowing in state [25:23] and out of state union activists [25:25] dictating what is built in our [25:29] community arizona is a right to [25:32] work state and we should uphold [25:32] this law. [25:35] On reflectioning of the [25:36] referendum question was [25:38] misleading and confusing. [25:42] I even signed the petition, not [25:45] recognizing it's deceptive [25:46] nature until further researched [25:48] and reviewed. [25:50] I was approached at the farmer's [25:53] market and whoever the petition [25:54] person was said -- are we [25:55] against all these apartments [25:57] that have been built in [25:59] scottsdale, and I was, I think [26:00] there's been a lot of big box [26:02] bad apartments that have been [26:03] built here. [26:06] I signed the petition, and then [26:08] my be husband was with me, like [26:10] a good husband, he signed the [26:11] petition too. [26:14] So there are two signatures on [26:16] there that in hindsight we [26:17] wouldn't have done. [26:20] And I feel that both of us were [26:22] duped, and I also feel that I [26:25] was lied to, which I'm not happy [26:28] about in retrospect. [26:31] Axon is an international cutting [26:32] edge corporation, we are [26:35] fortunate to have in scottsdale [26:43] since 1993 its net worth is [26:44] $43 billion with revenues [26:47] projected to be 27-point -- [26:50] 2.7 billion and axon's desire is [26:52] to build a world class [26:54] headquarters, which will be [26:56] another jewel and an economic [27:01] engine for scottsdale's crown. [27:03] And they have been great citizen [27:05] citizens and expansion only [27:06] increased that value. [27:09] It would be sad to lose axon to [27:11] another entity as we did with [27:13] the mayo hospital campus, going [27:14] to phoenix. [27:16] So in conclusion, I encourage [27:19] the mayor and council to approve [27:21] the mou and quit wasting [27:23] valuable time because time is [27:26] money for all of us. [27:27] >> Mayor Borowsky: thank you. [27:28] Dan isaac. [27:33] Followed by gail goalick and [27:35] leslie lureman. [27:38] >> dan isaac, address on record. [27:40] I'm here asking the council to [27:42] vote yes on the mou. [27:46] And I echo many vice mayor [27:48] kwasman's comments about why the [27:50] city should. [27:53] But let's be clear, we are here [27:56] because bob littlefield, some [27:58] short-sighted council members [27:59] and their controlled city [28:06] manager, denied residents the [28:08] right to vote and denied axon [28:10] the right to have a speedy [28:14] resolution, and because of that [28:17] denial, our state government, [28:19] once again, overreached, like [28:21] they did with short-term rentals [28:24] and the adu's, like they did [28:26] with adaptive reuse, school [28:29] funding, the list goes on and on [28:30] on. [28:32] But we now have an agreement [28:34] that's far less than what axon [28:35] originally came to. [28:38] Far less than what axon [28:39] negotiated last DECEMBER. [28:42] And it includes ownership [28:44] opportunities, and more open [28:46] space and more amenities for the [28:50] city, it is a good compromise. [28:52] More importantly, where will we [28:56] be if this doesn't get approved? [28:59] Well, there are only two [29:00] futures. [29:05] One is the taze lawsuit fails. [29:07] If that lawsuit fails, then axon [29:09] can pretty much do whatever the [29:10] heck tey want. [29:12] They're not limited to 1900 [29:12] apartments. [29:14] I believe axon will be a good [29:16] corporate citizen as they've [29:18] demonstrated over the past and [29:19] will comply with the originally [29:23] approved plan, but they can what [29:24] they want and we will have [29:26] wasted valuable time and have [29:29] 1900, at least, instead of 750 [29:32] apartments, 750 condominiums. [29:34] The other alternative is the [29:35] lawsuit is successful. [29:38] If that happens, axon [29:40] potentially leaves the city. [29:43] Taking hundreds of high-paying [29:44] professional jobs. [29:48] Having a multi billion dollar [29:50] negative impact on the state and [29:52] multi-million annual impact on [29:52] our city. [29:54] And they will then sell the [29:55] property to a developer who is [29:57] going to maximize their return. [30:00] And instead of a beautiful [30:04] campus, we will have a bunch of [30:06] soulless boxes of warehouses and [30:07] logistic centers which don't [30:09] require a single change to our [30:10] zoning. [30:11] It might have less traffic, but [30:14] it will have semi-trucks, light [30:17] industrial trucks, 24 hours a [30:17] day. [30:19] That is not an improvement. [30:21] And I want to reiterate, I do [30:24] not understand on what planet, [30:26] kathy littlefield, who is [30:27] immediate family member is a [30:29] party to a lawsuit against our [30:31] city, is allowed to vote on [30:31] this. [30:34] And barry, I don't want to hear [30:35] your opinion, you're not an [30:37] attorney, there has been nothing [30:38] documented saying there isn't a [30:39] conflict of interest, since [30:40] you're the only council member [30:43] who have been proven guilty of [30:45] violating ethics and lies on a [30:47] regular basis, your opinion on [30:49] the conflict is akin to jeffrey [30:50] epstein commenting on consent. [30:51] Thank you. [30:53] >> Mayor Borowsky: thank you, [30:55] dan. [30:58] Gail goalick, followed by leslie [31:00] lureman, tim lasota and last [31:02] gabby hitchcock. [31:05] >> MADAM Mayor, COUNCILMAN And [31:05] women. [31:07] I'm gail golic, resident of [31:10] scottsdale and state [31:11] committeemen. [31:12] for ld3. [31:15] I'm here to speak on this new [31:17] mou. [31:20] This mou eliminates axon's only [31:22] water obligation, the [31:23] requirement to transfer [31:25] 3,000-acre feet of long-term [31:28] storage credits to the city. [31:32] That 3,000 acres footage was the [31:33] only water-related commitment [31:35] attached to this project. [31:37] You are now being asked to [31:39] approve an mou without any [31:40] requirements at -- water [31:42] requirements at all. [31:43] But even more important is what [31:46] the city has already admitted to [31:49] me in writing, and the city's [31:51] official petition response dated [31:54] NOVEMBER 4, 2025, scottsdale [31:56] confirmed the city has no [31:58] documentation showing where the [32:00] water for this project will come [32:01] from. [32:04] The city has no 100-year water [32:08] calculations, the city has no [32:10] current water portfolio analysis [32:10] on file. [32:13] The city has no enforceable [32:16] water commitments from axon. [32:18] Although I wrote this and [32:20] understand that axon is no [32:22] longer required to do this, so [32:25] this -- city -- the city of [32:27] scottsdale is required as a [32:29] designated water source to [32:30] provide this information. [32:33] And the city is relying on the [32:35] 2013 analysis and the supporting [32:37] documentation is not in the [32:39] city's possession, and if it is, [32:41] they are not providing it to me. [32:43] This is not speculation, these [32:45] are by your own city manager's [32:47] written admissions, so today the [32:48] council is being asked to remove [32:50] axon's only water obligation [32:52] while the city is already [32:54] acknowledged it has zero [32:56] documentation showing the [32:58] 100-year water supply for this [32:58] document. [33:00] As that directly conflicts with [33:03] ars, which requires a [33:05] demonstrated 100-year assured [33:08] water supply before the city [33:09] enters into the development [33:11] agreements, zoning approvals are [33:12] or any development action. [33:16] Under that statute, scottsdale [33:18] cannot lawfully approve this [33:18] mou. [33:21] You cannot lawfully modify the [33:23] development class or restructure [33:24] obligations. [33:26] Without first providing the [33:28] public with identified water [33:31] sources, 100-year demand [33:33] modelling, any binding water [33:34] commitments and confirmation [33:37] from the adwr that this project [33:40] fits within scottsdale's daws. [33:42] None of that exists today. [33:44] And the city has already [33:46] admitted it does not exist. [33:48] Therefore, a yes vote on agenda [33:50] item 2 would be taken in [33:56] violation of ars45-576. [33:57] Two knowingly advance a project [33:59] with no demonstrated 100-year [34:01] water supply and it would be [34:02] legally will challengeable and [34:04] subject to review by the arizona [34:05] department of [34:06] water resources. [34:09] I urge you to vote no until the [34:11] city produces the documentation [34:14] required by law. [34:18] I realize that things can, you [34:19] know, happen actually in the [34:22] background and you guys can come [34:24] up with documents, but the [34:26] reality is that no documents [34:30] have been provided, and if you [34:32] can get the documents that [34:34] proves they have the water, go [34:35] for it. [34:37] Follow the law, you have an [34:38] obligation to uphold the law as [34:40] council members. [34:41] >> Mayor Borowsky: thank you. [34:57] Leslie lureman. [34:59] >> thank you, mayor and city [35:00] council. [35:03] My name is leslie lureman, and [35:06] I'm a board member at [35:08] scottsdale's stone brook ii. [35:10] Of course in order to be on the [35:12] board I need to own a property [35:14] there, and we do, but I need to [35:16] make it clear that I'm speaking [35:19] on behalf of myself as a [35:20] homeowner and not for the board [35:22] of directors. [35:24] We haven't taken, we haven't [35:25] polled the community and we [35:29] don't know what every community [35:31] member thinks, and so it [35:33] wouldn't be right for me to say [35:34] I represent all of them. [35:36] But I can say that I've been [35:41] here before, concerned about the [35:42] residential density. [35:44] I can't believe how much time [35:46] has been invested in this [35:49] process, I think I was naive [35:50] about the whole political [35:51] process. [35:52] In addition, there are legal [35:55] matters that need to be [35:57] resolved, I'm not even going to [35:58] speak to that. [36:01] Nor am I here to request [36:03] lowering the density. [36:05] I think that the group that has [36:07] been meeting with axon has [36:09] accomplished as much as they [36:11] possibly can. [36:13] Remember it's a two-way [36:13] negotiation. [36:15] You can't just keep saying no, [36:17] we only want 500 residential [36:18] units. [36:20] There has to be a compromise, [36:24] and I give axon credit for the [36:26] concessions it has made. [36:30] They have in many areas dug [36:31] deeply. [36:32] I think everybody has heard the [36:35] saying that the end of a [36:36] successful negotiation leaves [36:38] everyone unhappy. [36:40] And I think that's the case [36:41] here. [36:46] My reason for being here is to [36:47] remind everyone of some [36:49] specifically negotiated [36:52] concessions on the part of axon. [36:54] They aren't listed, that doesn't [36:56] mean you don't intend to include [36:56] them. [36:58] I just haven't seen any [37:00] reassuring sign. [37:03] So here are the three things I'd [37:06] like you not to forget. [37:09] Ensuring that axon workers and [37:12] visitors don't have access -- [37:15] direct acess into their campus [37:19] from either mayo/union hills or [37:20] 82nd street. [37:23] The last plan I saw had that [37:26] blocked off with a tall planted [37:27] berm. [37:31] The other is moving the tallest [37:33] buildings away from the [37:35] residential development, these [37:37] are all single family homes, [37:39] about 175 of them. [37:42] And no one wants people in the [37:44] tall buildings looking in their [37:47] backyard or their back windows. [37:50] And the last is creating a wide, [37:53] tall planted berm to provide [37:55] privacy, and that would be along [37:58] the north side of mayo/union [37:59] hills. [38:02] So I want to look you in the eye [38:06] and say, axon, mayor, city [38:08] council members, we are asking [38:10] you to honor those commitments. [38:11] Thank you. [38:12] >> Mayor Borowsky: thank you [38:13] very much. [38:20] Tim lesota. [38:22] >> good afternoon, mayor, [38:25] memberses of council, I'm tim [38:27] lesota on behalf of taxpayers [38:30] against awful zoning exemptions. [38:31] I urge a no vote. [38:33] I want to talk about the [38:34] referendum. [38:35] We have kind of heard some words [38:37] of what I would call the [38:40] defeated arguments against the [38:41] referendum. [38:43] Out of state money, union [38:44] interests, those are all the [38:45] arguments that have been made [38:47] already, they already failed and [38:49] that's what people say when they [38:50] lose the argument. [38:52] Is they -- they say, well, it [38:54] was this or it was that. [38:56] It was unfair, someone misled [38:57] me. [38:57] Not true. [38:59] I helped draft the language for [39:00] it, myself. [39:02] It was perfectly honest and it [39:04] got 27,000 signatures. [39:06] And that is no small feat. [39:08] I know all of you carry those [39:09] clipboards around and get [39:11] signatures from voters. [39:12] It's not that easy. [39:14] So that is a huge [39:15] accomplishment, and it should [39:16] count for something. [39:18] It should be honored by the [39:19] council, the council should [39:21] fight for the voters and fight [39:24] for their right to be heard. [39:27] In terms of this -- it looks [39:30] like with this mou and the item [39:32] no. 3, the self-certification [39:34] program, it looks like the [39:35] council would be following suit [39:36] with what the arizona [39:38] legislature did, and the arizona [39:40] legislature decided they would [39:42] create a special law for one [39:44] cmpany, and that was an [39:45] extremely disappointing, dark [39:47] day, I think, for our [39:48] legislature. [39:49] I don't think that should happen [39:50] here in scottsdale. [39:52] I think that's exactly the wrong [39:54] thing to do, and I know there's [39:55] a lot of talk about density, the [39:57] number is too high, but that's [39:59] going to be remarked on a lot. [40:00] But I think more than anything, [40:02] the thing that just stands out [40:05] to me is now we have this [40:07] self-certification program. [40:10] We have the axon statute and the [40:11] axon ordinance. [40:13] City of phoenix, write live has [40:15] had a self certification program [40:17] for many years. [40:18] A lot of people like it, gets [40:20] some good reviews, but not [40:21] limited to one company. [40:23] Anyone can use it. [40:26] I've never really heard of just [40:27] saying, we are going to [40:29] implement this entire new [40:32] program for one company. [40:35] So I think at the end of the [40:36] day, this is more of what we [40:38] have seen already, and that's [40:40] when axon does not get its way, [40:42] it demands to be treated in a [40:44] special way that nobody else is [40:44] treated. [40:47] I would urge a no vote on 2 and [40:49] 3, and I think scottsdale needs [40:54] to fight for its ability to have -- to be able to determine [40:55] its destiny and not have that [40:58] dictated by -- legally in my [41:00] mine, but I'll talk on agenda [41:02] item 5 in a few minutes, illegal [41:04] illegally by the arizona [41:04] legislature. [41:06] >> Mayor Borowsky: thank you, [41:09] gabby hitchcock and then josh [41:14] izer. [41:16] >> I'm gabby hitchcock a [41:18] resident of scottsdale. [41:20] City council members, you had an [41:21] extra meeting today just to [41:24] repeal an ordinance backed by [41:26] 26,000, but looks like it's much [41:28] more than that, and the petition [41:29] signatures and replace it with [41:31] one that gives axon everything [41:33] it wants, it shows you are [41:35] acting against the citizens you [41:36] represent. [41:37] scottsdale voters have already [41:39] removed council members for [41:41] approving smaller projects than [41:41] this. [41:43] I MAY have made a mistake in my [41:45] votes. [41:47] Reject this giveaway, protect [41:50] our city's character and join [41:53] the lawsuit to defend our right [41:55] of referendum. [41:56] Scottsdale belongs to the [41:59] citizens. [42:01] Not to axon. [42:04] >> Mayor Borowsky: thank you. [42:05] Josh izner. [42:06] >> can we get this to work on [42:12] this side here? [42:14] MADAM Mother, council, nice to [42:16] see you again. [42:18] MR. Kwasman, vice mayor, thank [42:19] you very much for your [42:20] statements already. [42:23] Mayor, you posted two hours ago [42:25] that you wanted us to arrive at [42:27] a deal with taze. [42:30] This is a text from their [42:31] representatives this morning. [42:33] We did not agree to 500 units [42:34] over the weekend. [42:37] They came back and they panicked [42:39] and proposed us this deal. [42:40] So mayor, if you want us to [42:42] agree to this deal with them, [42:44] it's right in front of you, make [42:46] the motion for 700 units instead [42:47] of 750. [42:49] We'll agree to the 60 months on [42:51] the next 200 and we have a deal. [42:52] That's what you asked for and we [42:54] are willing to do that deal. [42:57] What we're not willing to do is [42:59] let them parade around in their [43:00] self-righteous fashion, saying [43:01] we cancelled an election and all [43:03] this other stuff when they are [43:05] proposing a deal that I have [43:08] here that I can prove to you is [43:10] from them that will cancel the [43:11] election. [43:12] Let's forget that narrative [43:14] moving forward, it is patently [43:16] false, they do not care about [43:17] the election. [43:19] They are so panicked we are [43:21] going to beat them in court and [43:23] go to the state legislature as [43:24] MR. Kwasman just articulated [43:27] that they are willing to walk [43:28] away from all of this over the [43:32] last two years over a 50-unit [43:33] reduction. [43:33] Okay. [43:35] So that's the deal they've [43:35] proposed. [43:37] We are willing to do it, it's [43:38] exactly what you asked for, [43:39] mayor, all you have to do is [43:41] motion to update the numbers and [43:43] we will agree to it right here. [43:46] The second thing I'll say is, [43:47] MISS Littlefield, ad mire you, [43:48] you've been great to our [43:50] community where I live for years [43:52] and years as a member of the [43:54] drv, you were very good to us in [43:57] a dispute with our home or's [43:59] association, but your husband [44:01] stood up out front of council, [44:04] after the last vote, and said my [44:07] case will be stronger if the [44:09] city joins this election. [44:11] That's what he said on tv. [44:13] I don't understand how anyone on [44:15] this earth could deem it [44:17] appropriate, knowing it's your [44:18] husband who is already a party [44:21] to the suit to say you should be [44:22] voting to join that same [44:23] lawsuit. [44:25] I just don't think that is fair, [44:28] I don't -- I have tremendous [44:29] respect for you and the service [44:31] you have put forward toward this [44:34] city, but I do not think that is [44:34] fair. [44:36] Thank you very much. [44:37] >> Mayor Borowsky: thanks, josh. [44:40] And I think steve sutton, one [45:14] more speaker. [45:17] >> steve sutton, address on [45:19] record. [45:20] As tom was just mentioning, I'm [45:23] one of those petition [45:24] collectors, but not about axon. [45:26] Entirely different but trying to [45:27] protect scottsdale, but more [45:30] about that later. [45:32] Fact supported reality and a [45:34] motion supported perception can [45:35] have equal power and influence, [45:38] the beliefs and actions of [45:39] individuals. [45:41] Either can be at any time more [45:44] powerful in influence than the [45:45] other. [45:47] Regardless of the opinions, the [45:49] members of this council, city [45:51] policy or what criminal or civil [45:53] law MAY determine, not to be a [45:55] conflict of interest, the [45:56] perception of an increasing [45:58] number of scottsdale residents [46:01] is that a conflict of interest [46:01] exists. [46:04] I and other residents do [46:05] believe, council, kathy [46:06] littlefield has a conflict of [46:07] interest in discussing and [46:10] voting on matters, pertaining to [46:12] axon due to the activities of [46:14] her spouse, bob littlefield. [46:16] COUNCILMAN Littlefield has said, [46:18] quote, I am my own person and [46:20] defending herself from the [46:21] accusation of having a conflict [46:23] of interest. [46:26] However, being bob littlefield's [46:27] wife provides legal protections [46:28] to her and her husband that [46:29] could conflict with the [46:32] interests of kathy littlefield [46:33] scottsdale constituents. [46:35] At some point in the future, [46:37] testimony in court MAY not be [46:40] available due to littlefield's [46:41] having marital privilege [46:43] protecting marital [46:44] communications from being [46:45] revealedded and preventing [46:48] testimony against the spouse. [46:49] that could be detrimental to the [46:55] city of scottsdale in civil case [46:56] 202-503-4961, taxpayers against [46:59] awful apartment zoning [47:00] exemptions, versus state of [47:04] arizona, city of scottsdale. [47:07] , kathy littlefield should [47:08] recuse herself from the city [47:09] council discussion or vote on [47:13] matters pertaining to axon and [47:17] civil case 2025-034-961. [47:20] So far, this council's actions [47:22] regarding axon are a perfect [47:27] example of the german word for [47:28] attempting to make something [47:30] better and making it worse. [47:33] For over 23 years, a de facto [47:35] family dynasty seat has existed [47:36] on the city council. [47:37] That type of situation is rarely [47:39] good for governance of the city [47:41] the size of scottsdale. [47:42] Scottsdale is a city large [47:44] enough to have an ample number [47:46] of qualified individuals that [47:47] could give good service on the [47:48] council. [47:49] I believe this council has got [47:51] the attention of those qualified [47:53] individuals. [47:55] Kathy littlefield has given good [47:56] service to this city, but this [47:58] is not about past deeds, this is [47:59] about the current situation. [48:02] And I have one last statement [48:03] for you to contemplate. [48:09] I know you know what this is. [48:13] Cartago delenda est. [48:13] >> Mayor Borowsky: that [48:16] concludes the speakers. [48:18] So I'm going to talk about [48:20] what's been going on here. [48:21] As you all know, we have been [48:25] working on this since we took [48:26] office, since JANUARY, and this [48:29] has been a very long [48:32] conversation that's been a huge [48:35] divisive issue for the city of [48:36] scottsdale. [48:39] I feel for -- excuse me, for [48:42] axon and, you know, being put on [48:43] hold, and going through this [48:45] process, I also feel for the [48:48] residents who are so invested in [48:51] the outcome, in the opposite [48:51] direction. [48:55] So over the weekend, josh izner [48:58] just talked about some [48:59] negotiations we were still [49:02] having over this last weekend. [49:05] It is true that I want to see [49:06] this matter resolved, and I want [49:09] to see this matter resolved [49:11] where everyone can live with the [49:14] outcome, and there's going to be [49:15] finality with the outcome, and [49:19] so with that in mind, when we [49:21] originally talked about 750 [49:27] apartments, 750 condos, I got [49:30] notification from taaaze if we [49:33] approved this mou, that they [49:36] intend to do another petition [49:39] drive and refer it a second [49:39] time. [49:41] So that is not finality for me. [49:44] That is absolutely not finality, [49:48] and I do not want to see this [49:50] mess, really, continue. [49:53] I want to see it wrapped up and [49:54] I want people to go on with [49:59] their lives, and I want taaaze [50:00] to build their headquarters. [50:02] With that in mind, I met with [50:06] rick smith of axon, over the [50:07] weekend and their attorney and [50:10] we did come up with an [50:12] agreement, josh, I understood, [50:14] that we came up with an [50:15] agreement through the -- I had [50:18] also tom hatton was talking to [50:23] both rick smith and to taaaze. [50:25] I understand there was a dl for [50:28] 500 units, which -- to explain [50:30] tha further, taaaze, the [50:32] opposition group, committed that [50:35] they would stand down, they [50:37] would not refer it, and there [50:40] would be finality. [50:42] Pretty good result. [50:45] 500 -- 500 apartments, and then [50:49] as many condos, up to -- the [50:52] number of condos were not [50:53] identified yet. [50:57] So, you know, unbeknownst to me, [50:58] taaaze fired off some [51:01] communications to axon, which [51:03] essentially blew up what I [51:05] understood to be the agreement. [51:08] So I'm extremely disappointed in [51:10] that result because I thought [51:12] the number 500 was a good number [51:13] with the understanding that [51:16] build a great project, come [51:17] back, come back in a year or [51:19] two, whenever you want to do [51:21] some additional apartments, and [51:24] sell that case to us. [51:27] So where I stand right now, is [51:31] not in favor of this, I'm not in [51:33] favor of having another [51:34] referendum, and I don't want to [51:36] take that risk. [51:38] So josh, that's a great update, [51:41] I really want to understand what [51:44] this is and hear more about it [51:45] and get confirmation. [51:48] I don't think it's fair to do [51:50] that without the other parties [51:53] that are threatening to refer a [51:56] decision like this again, and we [51:58] can trust that they've done it [52:00] once, I don't know why they [52:01] wouldn't follow through with [52:03] that a second time. [52:05] So I'm going to -- I'm going to [52:07] move to take a ten-minute [52:07] recess. [52:10] So we can go have some [52:13] discussion about this. [52:13] >> second. [52:14] >> Mayor Borowsky: all those in [52:17] favor, please indulge me with [52:22] your confirmation. [52:23] Voice vote. [52:23] Okay. [52:24] Thank you. [52:28] We're going to recess for ten [1:22:20] >> Mayor Borowsky: sorry for the [1:22:20] delay. [1:22:23] We have been busy in very [1:22:25] serious discussions about how we [1:22:28] can resolve this item no. 2. [1:22:30] So I know there was some -- a [1:22:32] bunch of speakers on here. [1:22:34] I'm going to go down the list, [1:22:40] COUNCILWOMAN Whitehead. [1:22:40] >> Councilmember Whitehead: well [1:22:42] , good evening. [1:22:43] I'm going to keep it somewhat [1:22:45] brief based on how we end up [1:22:47] here, but I will just say having [1:22:49] been involved in this for a long [1:22:51] time, I do want to thank [1:22:54] everybody on both sides, and, [1:22:57] again, it seems like a year ago [1:22:59] that vice mayor kwasman spoke, [1:23:00] but just remind everybody here [1:23:03] and whoever is watching that [1:23:06] this vote is about whether or [1:23:08] not the city council accepts an [1:23:11] mou to significantly reduce [1:23:14] apartments and used [1:23:15] condominiums, which is something [1:23:17] a lot of our residents want, [1:23:20] that middle housing, and keep [1:23:23] the many investments that our [1:23:25] community will get from the deal [1:23:28] that was negotiated last year. [1:23:31] Many of us here in last year's [1:23:33] council and this year's council [1:23:34] worked really hard with the [1:23:35] residents of stone brook and [1:23:37] with the residents generally to [1:23:38] get some of these investments [1:23:41] which include a dog park, [1:23:42] walking path, this is an area [1:23:44] that doesn't have a lot of [1:23:46] walkability and connectivity. [1:23:48] So this deal will include all of [1:23:49] that. [1:23:51] Also, really important, some [1:23:53] tropic abatement and one of our [1:23:55] public speakers mentioned that. [1:23:56] So this deal does include a road [1:23:59] to keep the neighborhood and [1:24:02] axon's traffic separate. [1:24:04] I think that what we're -- and [1:24:07] the alternative, again, this is [1:24:08] not about zero apartments and [1:24:09] zero development. [1:24:11] why that's not on the table [1:24:11] tonight. [1:24:14] What's on the table is a local [1:24:15] controlled negotiated deal that [1:24:19] is a win for all parties, and [1:24:21] actually, to counter one of the [1:24:24] speakers, you can negotiate and [1:24:25] have everybody happy more or [1:24:26] less, but not everybody gets [1:24:28] exactly what they want. [1:24:29] So that's definitely the intent [1:24:30] here. [1:24:32] The alternative is to allow the [1:24:36] state law to take on a fact -- [1:24:38] it isn't a fact, have axon build [1:24:41] to that state law, which means [1:24:43] roughly 19-up apartments. [1:24:47] So it is my goal, it is my aim [1:24:50] to see this council do what we [1:24:52] are elected to do, which is [1:24:56] solve problems and create a [1:24:56] win/win. [1:24:58] I won't go into all the benefits [1:25:02] right now, but clearly we want [1:25:05] to keep an employer like axon [1:25:07] here, we are facing a lot of [1:25:08] head winds on the economy and [1:25:11] also want to have the highest [1:25:12] quality development, having a [1:25:15] world class city and have a [1:25:18] global leader in public safety [1:25:20] is really a good match. [1:25:22] I will say just briefly that [1:25:24] axon not only keeps our [1:25:26] residents safer based on the [1:25:27] numerous public safety people [1:25:28] that spoke during the course of [1:25:31] many meetings, but also keep our [1:25:34] police officers safer, so we are [1:25:34] real excited about that. [1:25:37] So I am supporting -- I'm [1:25:40] waiting to hear the final [1:25:42] motion, I don't have a motion, [1:25:45] but I support local control, I [1:25:47] support keeping this important [1:25:49] employer here, I support protect [1:25:51] protecting the neighbors most [1:25:53] closely impacted and the [1:25:55] residents every m and support [1:25:56] referendum process. [1:25:58] that's how we got here, the [1:26:00] referendum helped bring axon [1:26:01] back to the table and helped [1:26:03] bring a better deal to fruition. [1:26:05] So I'm going to leave it at that [1:26:06] for the moment, but thanks [1:26:08] everybody for your patience. [1:26:10] >> Mayor Borowsky: thank you, [1:26:13] COUNCILWOMAN Dubauskas. [1:26:13] >> Councilmember Dubauskas: than [1:26:15] k you, MADAM Mayor, thank you to [1:26:16] axon for coming out tonight and [1:26:18] thank you for being a major [1:26:19] employer in our city. [1:26:20] We appreciate the service that [1:26:21] you provide to the city of [1:26:22] scottsdale, we appreciate the [1:26:24] service that you provide [1:26:25] worldwide. [1:26:27] You are a known leader in your [1:26:28] field and we are proud to have [1:26:30] you here in the city of [1:26:30] scottsdale. [1:26:32] So thank you for coming out and [1:26:33] appreciate all your employees as [1:26:35] well coming out to show that you [1:26:38] support your employer. [1:26:40] As a member of the economic [1:26:41] development committee, I'm proud [1:26:42] to work with a variety of [1:26:44] employers throughout the city of [1:26:45] scottsdale and promote business [1:26:48] in the city of scottsdale. [1:26:50] So it is -- it is a wonderful [1:26:51] thing to have an employer like [1:26:53] axon who is a market leader in [1:26:54] our city. [1:26:55] So I just wanted to say thank [1:26:57] you very much to axon. [1:26:59] My concern with this project has [1:27:01] always been the number of units [1:27:03] in that particular area, as [1:27:04] well. [1:27:07] It was zoned no multi-family, [1:27:08] and so I remain concerned about [1:27:11] the number of units, but I'm [1:27:13] very much interested in keeping [1:27:14] axon, very much interested in [1:27:16] the hotel and the opportunity [1:27:18] that offers their business to [1:27:20] bring conventions to the city of [1:27:22] scottsdale and so with that, I [1:27:24] just wanted to say thank you to [1:27:26] axon tonight. [1:27:27] >> Mayor Borowsky: thank you, [1:27:29] COUNCILWOMAN Mcallen. [1:27:30] >> Councilmember McAllen: thank [1:27:31] you, mayor. [1:27:33] I too would like to thank all [1:27:37] the parties involved, axon, my [1:27:38] fellow council members, as well [1:27:40] as the citizens who took the [1:27:43] time to come out and voice [1:27:46] either their opposition or their [1:27:48] pro for this, because that is [1:27:50] what the process is all about. [1:27:52] You've heard a lot tonight from [1:27:54] the dais about that process [1:27:59] being removed from the citizens, [1:28:01] so we hear some of your [1:28:03] concerns, obviously, also need [1:28:05] to make sure that we help the [1:28:06] legislature understand that [1:28:09] local control is always the best [1:28:11] option that we want our [1:28:14] citizens, our city council to [1:28:18] actually affect the city we live [1:28:18] in. [1:28:20] I appreciate all the work that [1:28:22] axon has put in to coming back [1:28:25] to the table with this city. [1:28:27] I do think -- someone mentioned [1:28:30] before about the city losing [1:28:33] mayo hospital. [1:28:34] To phoenix. [1:28:36] We have also lost other things [1:28:37] to phoenix. [1:28:38] It's like chandler back in the [1:28:39] day. [1:28:42] They almost lost intel, it took [1:28:44] council members to make really [1:28:47] bold decisions, and with that, [1:28:49] I'm going to say I am going to [1:28:50] support the mou and I would love [1:28:53] for axon to stay in scottsdale, [1:28:55] I am glad to see the number of [1:28:58] units go down because the [1:28:59] citizens voiced that concern, [1:29:01] but the fact we are working [1:29:02] earnestly, right here in front [1:29:04] of all of you to try and make [1:29:08] this work so our city can have [1:29:10] what's best for our city an [1:29:13] employer that will be a good [1:29:17] communal supporter. [1:29:18] Someone that's going to support [1:29:20] events throughout the city in [1:29:20] the future. [1:29:22] That will sponsor events and be [1:29:24] here for the citizens of [1:29:25] scottsdale as well as their [1:29:27] neighboring community. [1:29:29] And more importantly, they [1:29:31] support our public safety, and [1:29:33] that is truly what is important. [1:29:35] So thank you. [1:29:36] >> Mayor Borowsky: thank you, [1:29:39] COUNCILMAN Graham. [1:29:39] >> Councilmember Graham: thank [1:29:43] you, mayor. [1:29:45] I want to make a few remarks [1:29:47] tonight, and I want to start by [1:29:49] saying this is not about axon [1:29:51] the corporation. [1:29:54] This is not about their global [1:29:57] headquarters, which we support. [1:30:00] Axon bought the 74 acres where [1:30:04] they are today with a deed [1:30:05] restriction that there would be [1:30:07] no multi-family housing and the [1:30:09] price was adjusted accordingly [1:30:11] for that discounted accordingly [1:30:13] for that restriction. [1:30:16] And in 2020, it was zone [1:30:17] ed [1:30:20] industrial with a height of [1:30:21] 52 feet. [1:30:23] Why and axon wanted to go bigger [1:30:25] for their global headquarters at [1:30:27] that point, and they did a lot [1:30:29] of back and forth and [1:30:31] negotiations in 2020, and I was [1:30:33] on the planning commission at [1:30:34] that time. [1:30:38] And I voted to increase, rezone [1:30:40] axon's land in 2020 as a member [1:30:44] of the planning commission. [1:30:46] 58 percent, I voted to increase [1:30:50] it from 52 feet to 82 feet. [1:30:55] I did that because we wanted to [1:30:57] keep axon in scottsdale, and [1:30:59] that meant for them to have the [1:31:01] headquarters that they desired. [1:31:03] In that vote in 2020 I also [1:31:06] voted for a reimbursement for [1:31:07] infrastructure. [1:31:10] So it's not about axon as a [1:31:11] corporation. [1:31:14] I feel like this process is [1:31:14] rushed. [1:31:17] You the public were given [1:31:18] notification approximately 72 [1:31:21] hours ago on a friday afternoon, [1:31:22] I know there are reasons for [1:31:24] that, but it doesn't feel like [1:31:26] there's an emergent reason and [1:31:27] that you should have had more [1:31:30] time to review this. [1:31:33] I want to stand up for my [1:31:35] colleague, COUNCILWOMAN [1:31:37] Littlefield. [1:31:38] Some aspersions were cast [1:31:41] against her, and I'm going to [1:31:44] repeat it that it is totally de [1:31:46] debunked, according to our legal [1:31:48] department, that COUNCILWOMAN [1:31:50] Littlefield has a conflict of [1:31:50] interest. [1:31:53] That has been scrutinized and [1:31:55] vetted. [1:31:57] I also want to address one of [1:31:59] the arguments that if we deny [1:32:01] this tonight that axon will just [1:32:03] go back to the legislature and [1:32:04] get something that's less [1:32:07] special, and then we will get [1:32:10] 1900 or 2,000 apartments. [1:32:13] See, here's the thing, the [1:32:15] possible legislation that [1:32:17] they're talking about would have [1:32:19] to be broader. [1:32:21] And that means it would include [1:32:24] more cities and more towns. [1:32:26] And what that would do is drag [1:32:27] more cities and towns into the [1:32:31] fight to be concerned about it. [1:32:33] Something else that should be -- [1:32:35] people should be aware of, since [1:32:38] senate bill 1543 was signed, [1:32:39] many legislators have felt the [1:32:41] sting from their voters. [1:32:42] Will so we don't have any [1:32:44] clue -- we have no clue what [1:32:46] their appetite for an amendment [1:32:47] or alteration to the legislation [1:32:49] would be. [1:32:52] I want to go and ask the city [1:32:55] attorney now a few questions. [1:32:57] First of all, a very basic [1:32:59] question, this is called a [1:33:01] memorandum of understanding, I'm [1:33:03] not an attorney, when I look up [1:33:04] the term memorandum of [1:33:05] understanding, it defines it as [1:33:09] a formal nonbinding agreement [1:33:11] between two parties that outline [1:33:12] outlines their mutual intentions [1:33:14] or objectives. [1:33:15] Can you please explain to the [1:33:17] public how this memorandum of [1:33:20] understanding is binding and [1:33:21] contractual. [1:33:22] >> Acting City Atty. Santaella: t [1:33:25] here is sometimes a [1:33:26] misunderstanding that a [1:33:27] memorandum of understanding is [1:33:28] not binding. [1:33:30] They can be nonbinding, but any [1:33:33] time you have a contract that [1:33:34] has offer, acceptance and [1:33:36] consideration, it's binding. [1:33:38] So in this case, there's an [1:33:40] offer, there's acceptance and [1:33:41] consideration, therefore this [1:33:43] memorandum in particular is [1:33:46] binding, because axon is giving [1:33:48] up something, we are giving up [1:33:49] something, they're getting [1:33:51] something, we are getting [1:33:52] something, there's definitely an [1:33:56] offer and acceptance and [1:33:57] consideration. [1:33:57] >> Councilmember Graham: if it [1:34:01] is binding, is it referable. [1:34:02] >> Acting City Atty. Santaella: s [1:34:04] o you're asking me to provide [1:34:06] legal advice on -- that's not [1:34:08] something I can address in the [1:34:09] public. [1:34:10] Why ultimately whether something [1:34:12] is referable is something the [1:34:15] courts would have to determine, [1:34:16] but generally administrative [1:34:18] acts are not considered [1:34:19] referable. [1:34:20] >> Councilmember Graham: I asked [1:34:21] you some of these other [1:34:22] questions, I'm going to ask [1:34:24] earlier and you gave me answers, [1:34:25] but it was privileged, so I want [1:34:27] to ask it and then you can [1:34:29] answer it to the best of your [1:34:31] capacity as far as what's [1:34:33] legally appropriate. [1:34:36] In this mou, we are repealing [1:34:38] another ordinance. [1:34:41] Can we repeal another ordinance [1:34:43] for an upzoning for an [1:34:44] applicant. [1:34:46] Can we legally do that. [1:34:47] >> Acting City Atty. Santaella: y [1:34:48] es, absolutely. [1:34:50] The mou itself is not repealing [1:34:54] the ordinance, it's asking it to [1:34:56] be agendized for consideration. [1:34:57] It is agendized for [1:34:58] consideration tonight. [1:35:00] One of the additional items [1:35:01] tonight is the zoning ordinance [1:35:03] and that can, indeed, be [1:35:05] repealed by the council. [1:35:07] As the council has done in the [1:35:09] past, I think southbridge is an [1:35:11] example of that. [1:35:12] >> Councilmember Graham: what I [1:35:13] thought with southbridge too, [1:35:15] that was 2019 where there was a [1:35:17] referendum on that, 15 stories [1:35:19] downtown, I understood the [1:35:21] applicant withdrew it, so I [1:35:26] guess my concern here is can [1:35:27] applicants -- can -- if we vote [1:35:29] on this, do we have to come back [1:35:31] another meeting to repeal the [1:35:33] ordinance, or is that done [1:35:34] tonight. [1:35:35] >> Acting City Atty. Santaella: I [1:35:35] t's done tonight. [1:35:36] >> Councilmember Graham: if we [1:35:37] repeal that ordinance, does that [1:35:40] take away the referendum signed [1:35:42] that has 26,000 signatures. [1:35:43] >> Acting City Atty. Santaella: y [1:35:43] es, it would. [1:35:44] >> Councilmember Graham: if we [1:35:47] remove the ordinance tonight, [1:35:54] and the courts rule that 1543 -- [1:35:56] courts rule against 1543, do we [1:35:58] have any legal exposure because [1:36:02] we have taken legal rights from [1:36:04] them? [1:36:05] >> Acting City Atty. Santaella: n [1:36:06] o, because they're unrelated. [1:36:08] The referendum is strictly based [1:36:11] on the zoning ordinance. [1:36:14] Without 1543, the city council [1:36:16] could have at any time repealed [1:36:18] the zoning ordinance and negated [1:36:20] the right to referendum. [1:36:23] 1543 is just an additional kind [1:36:26] of legal complication, just like [1:36:27] with southbridge, I don't [1:36:30] believe there's any state [1:36:30] legislation pending on the [1:36:35] horizon in that situation. [1:36:36] >> Councilmember Graham: section [1:36:39] 13, water pumping and sewer list [1:36:41] stations, it says the applicant [1:36:43] MAY elect to build these [1:36:44] critical facilities to city [1:36:45] standard and dedicate them to [1:36:46] the city. [1:36:49] It says the language is it MAY [1:36:49] elect. [1:36:52] If axon chooses to lower [1:36:54] standards, the city and its rate [1:36:56] payers could be left for [1:36:57] substandard infrastructure. [1:37:00] Can they choose -- can they [1:37:01] build to -- can they build to a [1:37:04] standard below the city [1:37:05] standard? [1:37:05] >> Acting City Atty. Santaella: s [1:37:07] o mayor, members of the council, [1:37:11] the intent of that section is we [1:37:12] will only take that [1:37:12] infrastructure into our [1:37:14] ownership and into our operation [1:37:15] if it meets our standards. [1:37:18] Will they still have to meet the [1:37:22] codes on the books for any [1:37:24] private commercial development. [1:37:25] So the idea that they would be [1:37:27] below standards, I don't think [1:37:29] that is accurate. [1:37:30] They just wouldn't necessarily [1:37:36] be to our city municipal [1:37:37] standard operations, they have [1:37:39] to meet the code standards. [1:37:40] >> Councilmember Graham: if they [1:37:41] don't meet them, what do we do [1:37:45] ask, do we have an enforcement [1:37:47] mechanism to upgrade them. [1:37:48] >> Acting City Atty. Santaella: o [1:37:49] nly if they want to turn them [1:37:50] over to us. [1:37:52] If they meet the minimum code [1:37:53] standards like any other [1:37:54] property owner, then they're on [1:37:57] their own and they're subject to [1:37:59] whatever problems those [1:38:01] facilities might cause for them. [1:38:02] They're minimal standards they [1:38:03] have to meet. [1:38:04] >> Councilmember Graham: so [1:38:07] speaking of water and stewer, [1:38:10] that general topic, NOVEMBER [1:38:11] NOVEMBER 2024, during the lame [1:38:13] duck session, there were five [1:38:16] members that voted for 1895 [1:38:17] units -- apartments something [1:38:19] like that, and in that [1:38:22] development agreement, axon was [1:38:24] to bring 3,000 ache [1:38:26] ier -- acre [1:38:27] feet of water. [1:38:29] Does this mou remove that [1:38:30] requirement? [1:38:31] >> Acting City Atty. Santaella: y [1:38:33] es, mayor and members of the [1:38:34] council, it does. [1:38:35] >> Councilmember Graham: and [1:38:35] what do you think the market [1:38:38] value of that -- bringing that [1:38:42] kind of water to our city might [1:38:43] be? [1:38:43] >> Acting City Atty. Santaella: I [1:38:44] would have to defer to the city [1:38:47] manager because I don't know. [1:38:49] >> Councilmember Graham: madam [1:38:51] mayor, council member graham, [1:38:51] regarding the -- [1:38:53] >> regarding the acre feet as [1:38:56] you referenced, 3,000 was in the [1:38:56] originally approved [1:38:58] approximately a year ago. [1:39:00] Just for context, I'll provide [1:39:03] the city council that requiring [1:39:06] additional acre feet is fairly [1:39:06] unusual. [1:39:07] The thought process at the time [1:39:09] was how we arrived at the 3,000. [1:39:11] I believe that's important for [1:39:13] the discussion purposes, and my [1:39:14] understanding that we did [1:39:16] calculations and anticipated [1:39:19] over a five-year period, based [1:39:20] upon the development, as [1:39:22] proposed at that time, it would [1:39:26] bring a demand of approximately [1:39:27] 600-acre-feet on an annual [1:39:29] basis, and therefore for five [1:39:31] years, which was what could be a [1:39:33] inquired, that's how the [1:39:35] 3,000-acre-feet came about. [1:39:36] >> Councilmember Graham: MR. Cat [1:39:37] on, respectfully, if you have a [1:39:39] market value, if you don't, [1:39:42] that's okay. [1:39:44] >> so that's important to put in [1:39:46] context, the acre-feet, and then [1:39:49] what I would add to that we [1:39:52] don't buy our water that way. [1:39:55] This is also a storage credits, [1:39:59] and we have approximately [1:40:00] 277,000-acre-feet in storage [1:40:01] credits. [1:40:03] To put the 3,000-acre feet, it's [1:40:05] much like a savings account for [1:40:12] water services. [1:40:14] So the acre feet were submitted [1:40:16] into our account, if you will, [1:40:18] added to our account for last [1:40:21] year, again, we don't buy them. [1:40:22] I. [1:40:22] >> Councilmember Graham: so it's [1:40:24] basically five years of what we [1:40:28] predict the buildout facility to [1:40:30] use. [1:40:32] >> City Mgr. Caton: at 1900 [1:40:32] units. [1:40:34] Should bebe discussion of a [1:40:35] different unit mix, then that [1:40:39] acre footage certainly changes. [1:40:40] >> Councilmember Graham: thank [1:40:41] you, MR. City manager. [1:40:44] Back to the city attorney, the [1:40:45] self-certification clause in [1:40:48] this, is the first time we have [1:40:50] done that for any applicant in [1:40:52] the city before. [1:40:53] >> Acting City Atty. Santaella: y [1:40:55] es, that's the correct. [1:40:55] >> Councilmember Graham: and [1:40:58] what would be the benefit to -- [1:40:59] because I don't know whose idea [1:41:01] this was, but what would be the [1:41:03] benefit to the applicant for [1:41:07] receiving that. [1:41:07] >> Acting City Atty. Santaella: t [1:41:08] here are various potential [1:41:09] benefits, and I would point out [1:41:12] in the ordinance that the [1:41:14] licensed engineers and architect [1:41:15] architects have to be mutually [1:41:17] agreed upon by the parties. [1:41:19] It's not a unilateral decision [1:41:21] on who to use. [1:41:24] So the benefits are -- and in [1:41:26] the cost of these people would [1:41:28] be borne by axon, it would not [1:41:30] cost the city money. [1:41:37] The benefit is that -- that axon [1:41:40] has people that they can rely [1:41:43] upon to accomplish the [1:41:46] inspections and not be concerned [1:41:51] with potential delays with city [1:41:53] processes or city staff or [1:41:55] concerns that the city might [1:41:57] delay the project for some [1:41:57] reason. [1:41:59] Those are the potential benefits [1:42:02] from an axon standpoint. [1:42:05] From a city standpoint, it's [1:42:07] limited in that there's very few [1:42:11] properties that could be [1:42:12] international headquarters in [1:42:12] scottsdale. [1:42:14] There's more than one, so it's [1:42:16] not a special law, our ordinance [1:42:18] because there are at least three [1:42:20] other properties that could be [1:42:22] developed international [1:42:23] headquarters processes. [1:42:27] From the city standpoint, it [1:42:30] relieves our personnel from [1:42:33] having to work or inspect these [1:42:34] projects. [1:42:36] I understand that we have fairly [1:42:39] heavy caseloads. [1:42:41] There is some obvious concern [1:42:43] with city staff placing that [1:42:46] control in an outside agency. [1:42:49] But it's basically something [1:42:55] that was important to axon, and [1:43:00] it's limited in scope to such [1:43:02] few properties, I don't think it [1:43:03] materially impacts our [1:43:05] inspection and permitting [1:43:06] processes, but I could certainly [1:43:09] defer to city manager caton. [1:43:10] >> Councilmember Graham: just [1:43:11] for the record what I heard you [1:43:12] say, some of our internal staff [1:43:15] are uncomfortable with it, but [1:43:17] it was important to axon and so [1:43:18] we did it. [1:43:20] And so it sounds like they're [1:43:21] getting something, I just [1:43:23] wondered what we're getting. [1:43:25] Just -- I'm just expressing my [1:43:27] discomfort with that. [1:43:28] >> Acting City Atty. Santaella: u [1:43:32] nderstood. [1:43:33] >> Councilmember Graham: I don't [1:43:36] know what the unit count is. [1:43:38] The last I saw was 1500, but [1:43:41] that MAY have changed since, you [1:43:45] know, in the past 30 minutes. [1:43:48] Can axon legally, for any [1:43:51] condominiums for ownership units [1:43:53] they put in there, can they use [1:43:55] those legally as short-term [1:43:56] rentals? [1:43:57] >> Acting City Atty. Santaella: y [1:43:59] es, they could. [1:44:00] >> Councilmember Graham: could [1:44:01] they legally open -- could they [1:44:04] legally acquire those units, [1:44:08] condominium units in an llc and [1:44:11] lease them like any other [1:44:14] investment lesser? [1:44:15] >> Acting City Atty. Santaella: p [1:44:17] resumably, yes, as long as they [1:44:19] don't put -- it all depends on [1:44:21] what kind of ccr's they put on [1:44:23] those properties. [1:44:24] >> Councilmember Graham: I want [1:44:25] to talk about a couple of more [1:44:28] things and wrap up my comments. [1:44:33] Section 19 is are -- section 19 [1:44:36] is a city council liaison where [1:44:38] we appoint the city council [1:44:39] economic development chair as [1:44:43] liaison between axon and city of [1:44:44] scottsdale. [1:44:48] And that -- when I saw that, [1:44:51] that just seemed very kind of [1:44:52] jumped out at me. [1:44:54] Have we haver done anything like [1:44:55] that in the city to your [1:44:56] knowledge. [1:44:56] >> Acting City Atty. Santaella: t [1:44:58] o my knowledge, no. [1:44:59] >> Councilmember Graham: it [1:45:00] appears to endow one council [1:45:03] member with a significant amount [1:45:05] of power, and it almost seems [1:45:08] like it turns him from -- into [1:45:08] an agent. [1:45:12] If he's the liaison, who [1:45:15] appraises his or her performance [1:45:17] and is he or she giving orders [1:45:17] to staff. [1:45:20] It gives me discomfort to think [1:45:22] about if he MAY be directing [1:45:24] people and, you know, I see our [1:45:26] job up here as governance, not [1:45:26] management. [1:45:28] We shouldn't be executing these. [1:45:31] And so if I could just sort of [1:45:32] side step this a little bit and [1:45:34] mae a motion to delete that [1:45:36] provision from this mou, if my [1:45:38] colleagues would indulge me and [1:45:40] we could kind of delete that and [1:45:44] that could be removed from the [1:45:44] agreement. [1:45:46] So I'll move -- but then I'm not [1:45:48] done with my comments. [1:45:49] i would make that motion. [1:45:51] >> I'll second that. [1:45:51] >> Councilmember Graham: so we [1:45:54] have a motion and a second. [1:45:56] Ben, is that clear to you what [1:45:58] we're saying? [1:46:04] Okay. [1:46:07] >> I'd like to speak to that [1:46:09] motion. [1:46:13] If that's okay. [1:46:14] COUNCILWOMAN Littlefield. [1:46:15] >> let's go down the list real [1:46:19] quick, she's been waiting. [1:46:23] >> I want to be respectful to [1:46:25] COUNCILWOMAN Littlefield's place [1:46:26] in line. [1:46:26] >> Councilmember Graham: I have [1:46:27] more comments to make, but I [1:46:29] wanted to make -- maybe I can [1:46:30] make this motion at the end of [1:46:31] my comments. [1:46:32] I'll make a few more comments [1:46:34] and put the motion on the floor [1:46:38] for us to debate. [1:46:42] Thank you. [1:46:43] >> Mayor Borowsky: thank you, [1:46:44] are you still -- [1:46:45] >> Councilmember Graham: still [1:46:46] going. [1:46:48] I'm almost done. [1:46:49] >> Mayor Borowsky: still going. [1:46:50] >> Councilmember Graham: almost [1:46:51] done with my sermon. [1:46:55] I have concerns about this mou, [1:46:57] I think the compliance language [1:47:00] is weakened by some carveouts in [1:47:03] the document. [1:47:04] Very strong, very great concerns [1:47:08] with removing a referendum sign [1:47:10] signed with containing 26,000 [1:47:11] signatures. [1:47:14] Concerned about the removal of [1:47:15] the water, and I'm also [1:47:17] concerned about if we do this, [1:47:20] are we telling other commercial [1:47:22] interests if this council [1:47:30] doesn't give into their desires, [1:47:31] that we -- they can just head [1:47:33] over to the legislature and get [1:47:36] legislative relief and go around [1:47:36] us. [1:47:38] I do agree with leslie lureman [1:47:41] from the stone brook hoa, [1:47:44] negotiations should be two ways, [1:47:46] but through this process, too [1:47:49] many residents have told us that [1:47:52] this has felt one way. [1:47:54] Instead of guiding growth, they [1:47:57] tell me, it feels like the [1:47:59] process has overridden it. [1:48:00] So I appreciate -- those are my [1:48:02] comments at the time being, [1:48:03] there's a motion and second on [1:48:03] the floor. [1:48:05] Thank you to my colleagues -- I [1:48:07] know we'll debate the motion, I [1:48:08] appreciate my colleagues for [1:48:10] voting on it. [1:48:15] >> Mayor Borowsky: thank you, [1:48:16] COUNCILWOMAN Littlefield. [1:48:17] >> Councilmember Littlefield: th [1:48:18] is really isn't regarding the [1:48:20] motion so much as some of the [1:48:24] comments that were made earlier. [1:48:29] I would like to let you all know [1:48:31] that my ability to represent the [1:48:32] citizens of scottsdale regarding [1:48:36] this issue has been reviewed [1:48:37] previously. [1:48:39] And I draw upon our city [1:48:41] attorney for his conclusion, [1:48:45] which he gave to me earlier. [1:48:47] City attorney? [1:48:49] >> Acting City Atty. Santaella: h [1:48:49] onorable mayor and members of [1:48:51] the council. [1:48:54] COUNCILWOMAN Littlefield asked [1:48:56] me to publicize the fact we have [1:48:59] evaluated whether she has a [1:49:00] conflict of interest in this [1:49:01] matter and determined she does [1:49:02] not have a conflict of interest [1:49:06] in this matter. [1:49:06] >> Councilmember Littlefield: th [1:49:07] ank you, I do not. [1:49:10] I am a separate person from my [1:49:11] husband. [1:49:15] He does his thing, I do mine. [1:49:18] And it is in my own right that I [1:49:19] have listened up here to the [1:49:21] comments and the considerations [1:49:23] and the wise and the wheres and [1:49:26] thousands and whos and made my [1:49:27] own decision. [1:49:30] The only other people who have [1:49:32] interested me are the citizens [1:49:34] of scottsdale. [1:49:36] I listen to them. [1:49:38] And they are very forthcoming [1:49:40] with their opinions and their [1:49:43] reasons and their whys and where [1:49:44] fores. [1:49:47] I have well over 1,000 e-mails [1:49:49] still waiting for me to answer [1:49:52] after the last three days, I [1:49:55] have spent entirely answering [1:49:56] their e-mails, regarding this [1:49:57] issue, axon. [1:50:00] They are very concerned. [1:50:02] They do not want this expansion [1:50:05] of axon, and that is everyone [1:50:07] who e-mailed me and there are [1:50:08] thousands. [1:50:10] Except one person. [1:50:12] Who wanted it. [1:50:14] That is who I listen to. [1:50:17] The citizens of scottsdale. [1:50:20] I do try to represent them, and [1:50:23] I've spent almost four full days [1:50:25] reading their e-mails and I [1:50:27] haven't come to the end of them [1:50:28] yet. [1:50:29] They're still there waiting for [1:50:29] me. [1:50:31] So far, and with the exception [1:50:35] of one, all citizens have said [1:50:37] no to this. [1:50:39] Every single citizen. [1:50:41] No. [1:50:41] As their representative, it is [1:50:45] my job and my duty to listen to [1:50:46] them. [1:50:48] With such overwhelming negative [1:50:52] input, I will not support this. [1:50:58] It is -- let me get where I am [1:50:58] here. [1:51:00] It is against what I swore I [1:51:04] would do as their representative [1:51:06] I represent the citizens. [1:51:09] That's who I am. [1:51:12] and I will continue to do so. [1:51:14] I am not against coming back to [1:51:16] axon and saying let's [1:51:18] renegotiate, let's look at this, [1:51:20] how can we bring this more in [1:51:21] line with what our citizens want [1:51:24] so we can all live in peace, [1:51:26] because we are not going to with [1:51:28] this, let me tell you, guys, [1:51:30] they will not be happy. [1:51:34] I am open to that kind of a [1:51:35] negotiation, but I cannot [1:51:37] actively and directly vote [1:51:39] against thousands of scottsdale [1:51:41] citizens who have e-mailed me [1:51:43] and asked me to say no. [1:51:45] Thank you. [1:51:46] >> Mayor Borowsky: thank you. [1:51:49] Vice mayor kwasman. [1:51:50] >> Vice Mayor Kwasman: thank [1:51:51] you, MADAM Mayor and members of [1:51:53] the council. [1:51:56] I do not find council member [1:52:01] graham's motion a hostile [1:52:02] motion. [1:52:03] I'm in support of the motion and [1:52:07] happy to remove it from the [1:52:09] memorandum of understanding or [1:52:11] designate the city manager as [1:52:15] the liaison. [1:52:17] >> Mayor Borowsky: thank you. [1:52:18] COUNCILWOMAN Whitehead. [1:52:18] >> Councilmember Whitehead: I [1:52:21] think I'll make my remarks after [1:52:24] we vote on COUNCILMAN Graham's [1:52:25] motion. [1:52:25] >> Mayor Borowsky: okay. [1:52:28] The motion on the table is to [1:52:30] remove the council liaison from [1:52:31] the mou. [1:52:50] All those in favor? [1:52:52] How about we take a voice vote. [1:52:53] All those in favor. [1:52:55] There we go. [1:52:58] Okay. [1:52:59] Thank you. [1:53:01] All right. [1:53:03] I don't see any -- [1:53:03] . [1:53:06] >> I lost my spot. [1:53:06] >> Mayor Borowsky: that's okay. [1:53:10] Go ahead, go right ahead. [1:53:10] >> Councilmember Whitehead: I [1:53:12] just want to wrap up on a couple [1:53:14] of things that were mentioned, [1:53:15] there was a lot of talk about [1:53:18] the number of units, and the [1:53:18] density. [1:53:20] So I did just want to give [1:53:21] people a little bit of [1:53:22] perspective there. [1:53:24] I came in this evening having [1:53:26] been part of a negotiation that [1:53:29] was 750 condos and 750 [1:53:31] apartments, and that's a really [1:53:32] important distinction. [1:53:34] Again, all of those community [1:53:35] investments, and I can tell you [1:53:37] that I personally have spent [1:53:39] thousands of hours with [1:53:43] residents, and as one can [1:53:44] imagine, 240,000 residents don't [1:53:45] all agree on anything. [1:53:48] I have not received a thousand [1:53:50] e-mails, but I have spent over [1:53:51] the last couple of years, [1:53:53] thousands of hours with [1:53:53] residents. [1:53:56] There is support and there's [1:53:56] opposition. [1:53:59] Let's talk about the density, [1:54:01] the numbers that I have -- that [1:54:02] I support, which are [1:54:03] significantly lower than what [1:54:05] the state will allow. [1:54:09] The density is 21 -- about 21.5 [1:54:11] units per acre, and as [1:54:14] comparison, there are projects [1:54:17] in the air park, in that same [1:54:20] region that are 60 units to the [1:54:20] acre. [1:54:26] So the density here has changed [1:54:27] changedes so dramatically, and [1:54:30] people are so upeat set about [1:54:32] the -- upset about the original [1:54:33] number, it got lost in the [1:54:34] negotiations. [1:54:37] I also want to stress that, [1:54:39] again, the community has been [1:54:41] very involved. [1:54:44] we all are up here representing [1:54:45] residents. [1:54:47] Residents don't all agree on [1:54:50] everything, and I think the [1:54:51] former employee spoke [1:54:53] beautifully about change, we [1:54:55] choose scottsdale, we love [1:54:57] scottsdale, change upsets [1:55:00] everybody, and the incredible [1:55:02] opposition to the waterfront, [1:55:04] reminds me of tonight's [1:55:05] decision. [1:55:08] The waterfront saved our mall, [1:55:15] it is one of the most vibrant [1:55:18] and economically beneficial [1:55:20] spots in our city. [1:55:24] It was a height, 150-foot [1:55:27] towers, for open space trade and [1:55:30] that council, at that time, mary [1:55:32] man ross was mayor, went ahead [1:55:33] and did not that. [1:55:36] What we have here today is dirt [1:55:38] on a freeway that is not [1:55:40] productive, not helpful to the [1:55:41] neighbors, not helpful to [1:55:43] anyone, and it will be developed [1:55:45] just look a couple miles east [1:55:47] and see what warehouses look [1:55:47] like. [1:55:51] So what we are proposing here is [1:55:52] not -- no apartments, that's not [1:55:55] on the table, but what we are [1:55:56] proving is something that's very [1:55:58] low density for the area. [1:56:00] Thank you. [1:56:01] >> Mayor Borowsky: thank you. [1:56:03] Vice mayor kwasman. [1:56:03] >> Vice Mayor Kwasman: thank [1:56:04] you, MADAM Mayor. [1:56:08] I move to adopt resolution no. [1:56:11] 1356, adopting contract no. [1:56:16] 2025-195-cos. [1:56:18] Between the city and axon [1:56:20] enterprise, inc. With the [1:56:21] following modify kicks, why [1:56:24] section 6 amended to -- as [1:56:26] amended, as previously amended [1:56:29] by the last amendment. [1:56:31] And then the following [1:56:33] modifications. [1:56:35] section 6 is amended to reduce [1:56:37] the total number of units from [1:56:40] 1500 units to 1200 units, and of [1:56:43] the 1200 units, 600 will be [1:56:45] apartmented why, 600 [1:56:45] condominiums. [1:56:47] First phase will be 500 [1:56:49] apartments, 100 condominiums, [1:56:52] second phase c apartments, and [1:56:54] 500 condominiums as designated [1:56:55] in the mou. [1:56:56] The city council authorizes the [1:56:58] city manager and the interim [1:57:01] city attorney to make conforming [1:57:02] changes consistent with this [1:57:05] modification. [1:57:09] And before I finish my motion, [1:57:10] with that sitting on the table, [1:57:13] do I need to amend my motion, [1:57:15] MR. City attorney, to discuss [1:57:19] the -- to discuss the 48-hour [1:57:20] aspect of it or is that coming [1:57:25] in a later -- [1:57:26] >> Acting City Atty. Santaella: h [1:57:28] onorable mayor and vice mayor, [1:57:31] members of the city council, you [1:57:34] can -- when we get to that item, [1:57:36] it should be amended [1:57:37] appropriately just to say [1:57:40] regarding the signature stuff. [1:57:42] If that makes sense. [1:57:42] >> Vice Mayor Kwasman: nothing [1:57:44] else right now. [1:57:45] Okay. [1:57:46] . [1:57:48] >> if I MAY, I would suggest [1:57:50] there was, I understand, a [1:57:54] discussion about a proportional [1:57:55] reduction in the commercial as [1:57:58] it relates to the reduction on [1:57:59] the -- reduction on the [1:58:01] residential piece. [1:58:04] So it was to be commensurate [1:58:08] with that reduction. [1:58:09] >> Vice Mayor Kwasman: then I'm [1:58:10] going to restate my motion if I [1:58:11] can, MADAM Mayor. [1:58:15] I move to adopt resolution no. [1:58:20] 1357 adopting contract no -- [1:58:25] 2025-195-cos as previously [1:58:25] amended. [1:58:26] Between city -- between the city [1:58:28] of scottsdale and axon [1:58:30] enterprise, inc. With the [1:58:31] following modifications, section [1:58:32] 6 amended to reduce the total [1:58:35] number of units from 1,500 units [1:58:36] to 1,200 units. [1:58:40] Of the 1,200 units, 600 of those [1:58:42] units will be apartments and 600 [1:58:44] units will be condominiums. [1:58:46] The first phase will be 500 [1:58:48] apartments and 100 condominiums. [1:58:49] The second phase will be 100 [1:58:54] apartments and 500 condominiums. [1:58:57] Furthermore, there will be an [1:58:58] appropriate proportionate [1:59:02] reduction of commercial -- of [1:59:04] commercial space as -- in order [1:59:08] to align with the reduction in [1:59:09] residential buildings. [1:59:11] The city council authorizes the [1:59:12] city manager and interim city [1:59:15] attorney to make the conforming [1:59:17] changes, consistent with this [1:59:18] modification. [1:59:21] >> I'll second that. [1:59:22] >> Mayor Borowsky: thank you. [1:59:24] I don't see any other speakers, [1:59:27] but I'm going to be supporting [1:59:29] vice mayor kwasman's motion. [1:59:31] I think the parties have worked [1:59:34] really hard to come to a number [1:59:37] that is dramatically lower than [1:59:40] what we inherited when we [1:59:41] took -- when I took office. [1:59:44] So going from nearly 1900 [1:59:46] apartments down to 600, I think, [1:59:50] is a positive result and [1:59:51] especially with all the other [1:59:54] moving parts, which you've heard [1:59:56] so much about over the past [1:59:59] eight, nine months, you know, [2:00:00] even with the election, no [2:00:04] matter the outcome, under the [2:00:07] state law, they can do the 1900 [2:00:09] units or more. [2:00:12] So I spoke earlier about wanting [2:00:15] finality for me this is -- this [2:00:18] creates finality on this issue. [2:00:20] it gets the conversation moving [2:00:23] in a direction of let's break [2:00:24] ground and start construction. [2:00:27] And let's go build a great [2:00:27] project. [2:00:31] So I am pleased about that, I [2:00:32] appreciate the rester, all of [2:00:34] the efforts that went into it. [2:00:37] We have all -- we've all worked [2:00:39] fairly tirelessly on this, and, [2:00:40] you know, that involves talking [2:00:42] to all of the residents as well. [2:00:45] And I just wanted to touch on [2:00:46] the self certification element [2:00:48] of this, I'm actually very [2:00:49] excited about this. [2:00:50] I like the fact that we are [2:00:53] going to do a test case here. [2:00:57] Especially when we have -- we [2:01:00] can have a role in this election -- in the selection of [2:01:00] the individual. [2:01:03] We are in good shape there. [2:01:05] I know other jurisdictions have [2:01:09] this, and they outsource the -- [2:01:12] you know, those obligations to [2:01:14] third party, and I think it's [2:01:16] going to be great to see how [2:01:17] that works. [2:01:19] And I think that's all that I [2:01:20] have. [2:01:21] But I will be supporting the [2:01:22] motion. [2:01:24] So without any further comments, [2:01:36] let's go ahead and take a vote. [2:01:41] >> point of order. [2:01:44] Is this item no. 2, 3 and 4 or [2:01:45] just 2. [2:01:45] >> Mayor Borowsky: just 2. [2:01:47] Why we have to go through 3 and [2:01:47] 4. [2:01:48] All right. [2:01:52] Okay. [2:01:54] That motion passes, and moving [2:01:59] right along. [2:02:00] All right. [2:02:03] And so item no. 3, the [2:02:04] self-certification and third [2:02:05] party certification. [2:02:08] This is a request -- was that in [2:02:10] your motion? [2:02:10] okay. [2:02:12] This is a request to consider [2:02:15] ordinance no. 4697 authorizing [2:02:17] the establishment of a self [2:02:19] certification and third-party [2:02:21] certification program for [2:02:22] qualified international [2:02:24] headquarters campuses. [2:02:26] The proposed ordinance enables [2:02:28] licensed professionals, [2:02:29] architects and engineers, to [2:02:32] certify plans and inspections. [2:02:35] Applies only to projects [2:02:37] qualifying under arizona revised [2:02:43] statutes section 9-461.19. [2:02:45] And includes provisions for city [2:02:48] oversight, audit rights and [2:02:50] enforcement. [2:02:55] And will be sunsetted on JANUARY 1, 2035, unless extended [2:02:57] extended. [2:02:59] So I know we have a couple of [2:03:02] speakers on this, let's turn to [2:03:05] those, gail golic, fired by tim [2:03:20] lesoto and gabby hitchcock. [2:03:23] >> good evening, MADAM Mayor and [2:03:25] council members, my name is gail [2:03:27] golic, and I am a state [2:03:30] committeemen with ld3 and [2:03:31] scottsdale resident. [2:03:33] This is basically we are going [2:03:35] to be speaking the same -- the [2:03:37] same thing that I mentioned [2:03:41] before, but I want to reiterate [2:03:42] this. [2:03:45] I'm speaking on agenda item 3, [2:03:47] which creates a self [2:03:48] certification third party [2:03:51] permitting programs for large [2:03:51] headquarter developments. [2:03:54] This item must be considered a [2:03:57] light of a simple but extremely [2:03:59] fact, axon no longer has any [2:04:01] water obligation. [2:04:04] That means scottsdale must [2:04:06] independently demonstrate the [2:04:09] required 100-year assured water [2:04:12] supply before it advances [2:04:14] permitting for this project. [2:04:16] And state law is absolutely [2:04:18] clear on whether this -- excuse [2:04:20] me, when this proof must clear. [2:04:24] I want to quote the statut. [2:04:25] A plat of a subdivision shall [2:04:29] not be approved by a city or [2:04:31] town unless the director has [2:04:34] determined that the subdivision [2:04:38] has an assured water supply. [2:04:41] And even more to the point, ars [2:04:45] ars545-576h, a center town shall [2:04:47] not approve a plat or permit the [2:04:48] construction of a subdivision [2:04:51] unless an assured water supply [2:04:54] has been demonstrated. [2:04:55] A self-certification permitting [2:04:58] program is, by definition, a [2:05:00] program that permits [2:05:02] construction, therefore, under [2:05:05] 45-576, it cannot be improved [2:05:06] unless the city has already [2:05:11] demonstrated the 100-year water [2:05:11] supply. [2:05:12] But scottsdale cannot [2:05:15] demonstrate it and has admitted [2:05:15] so. [2:05:17] In the city's NOVEMBER 4 [2:05:18] petition response, scottsdale [2:05:20] confirmed it has no [2:05:21] documentation identifying the [2:05:23] water sources for this project, [2:05:26] it has no 100-year demand [2:05:27] calculations, it has no [2:05:30] up-to-date water portfolio [2:05:33] analysis, it has no enforceable [2:05:34] water commitments from axon, [2:05:36] never mind, don't need it and [2:05:41] scottsdale is relying on the [2:05:43] 2013daws whose planning horizon [2:05:45] only goes through 2025. [2:05:47] That's only six weeks from now. [2:05:48] The city further admitted that [2:05:53] the supporting documents for the -- that is no longer in its [2:05:54] possession and adwr has not [2:05:57] approved scottsdale's new -- the [2:05:58] water supply plan. [2:06:01] This means scottsdale's 100-year [2:06:03] water model does not extend [2:06:04] beyond 2025. [2:06:07] The city is outside its planning [2:06:09] orize oon and cannot show 100 [2:06:11] year water supply required by [2:06:12] law. [2:06:13] Therefore approving item 3 today [2:06:14] which advances construction [2:06:17] without a demonstrated 100-year [2:06:20] water supply would violate that. [2:06:21] It would move a development [2:06:23] forward with no water [2:06:25] obligations from the city, no [2:06:28] proof of 100-year map and expire [2:06:30] 2013 planning horizon. [2:06:32] This exposes the city to legal [2:06:34] challenge and adwr review. [2:06:38] Jim urge you to vote no on item [2:06:39] 3 until the documentation is [2:06:40] publicly produced. [2:06:42] Thank you for your time. [2:06:44] >> Mayor Borowsky: thank you. [2:06:45] Tim lesota. [2:06:46] >> I already spoke on this item. [2:06:48] Why effectively. [2:06:50] >> Mayor Borowsky: thanks, gabby [2:07:03] hitchcock. [2:07:06] I don't see gabby hitchcock. [2:07:06] Anybody? [2:07:07] No. [2:07:08] All right. [2:07:09] Moving right along. [2:07:14] That concludes the speakers. [2:07:21] And so anyone want to bring a [2:07:24] motion. [2:07:29] >> mayor, I am going to motion [2:07:31] motion -- yeah. [2:07:34] Request adopt ordinance no. 4697 [2:07:36] authorizing the establishment of [2:07:38] the self-certification and [2:07:39] third-party certification [2:07:40] program for qualified [2:07:42] international headquarter [2:07:42] campuses. [2:07:45] The proposed ordinance enables [2:07:45] licensed professionals, [2:07:47] architects and engineers to [2:07:48] certify plans and inspections. [2:07:51] Will applies only to projects [2:07:53] qualifying under arizona revised [2:07:57] statutes section 9-461.19, [2:07:59] includes provisions for city [2:08:01] oversight, audit rights and [2:08:02] enforcement. [2:08:03] It is proposed to sunset on [2:08:06] january 1, 2035, unless extended [2:08:09] extended. [2:08:10] >> second. [2:08:13] >> Mayor Borowsky: all those in [2:08:13] favor? [2:08:15] Excuse me. [2:08:16] Go right ahead. [2:08:18] >> mayor and members of the [2:08:19] council, there is no delayed [2:08:21] repeal date in the ordinance [2:08:34] that was presented, I believe. [2:08:35] >> Mayor Borowsky: do we need to [2:08:38] do anything about that? [2:08:39] >> Acting City Atty. Santaella: t [2:08:40] he signed copy I submitted did [2:08:44] not have a delayed repeal date. [2:08:47] So that's the issue where the -- [2:08:49] I believe the ordinance does not [2:08:52] have a delayed repeal date. [2:08:55] >> to clarify do I need to take [2:08:59] out the proposed sunset date [2:08:59] toronto yes. [2:09:01] >> I'll strike the last [2:09:06] sentence, is proposed to sunset. [2:09:07] >> Mayor Borowsky: COUNCILMAN [2:09:07] Graham. [2:09:08] >> Councilmember Graham: thank [2:09:08] you. [2:09:12] It does is proposed to sunset [2:09:14] JANUARY 1, 2035, so I just -- [2:09:17] that's what I'm reading. [2:09:18] >> Acting City Atty. Santaella: t [2:09:21] here's an error on the agenda [2:09:22] language, but the actual [2:09:23] ordinance doesn't have a delayed [2:09:25] repeal date. [2:09:26] >> Councilmember Graham: okay. [2:09:27] So the -- okay. [2:09:28] >> Acting City Atty. Santaella: s [2:09:30] o she council can adopt it [2:09:33] either way, it could add it into [2:09:36] the ordinance that was attached. [2:09:39] Or keep it out. [2:09:41] My understanding it's going to [2:09:43] take axon much longer than ten [2:09:45] years or whatever to finish [2:09:51] their campus. [2:09:53] >> then I choose to strike it [2:09:56] from my motion. [2:09:58] >> I'll second the motion [2:10:02] with -- that section struck out. [2:10:04] >> just so the council knows, [2:10:05] you can always come back and [2:10:07] change ordinances. [2:10:09] This was just an automatically [2:10:11] take it off the boobs. [2:10:13] >> mayor, I'd like to speak to [2:10:14] my motion. [2:10:15] >> Mayor Borowsky: go right [2:10:15] ahead. [2:10:16] >> for those of you in the [2:10:18] audience, this is a very common [2:10:22] practice to have third party [2:10:23] certification, almost all the [2:10:24] cities do it, especially on [2:10:26] massive projects. [2:10:27] We'll be entering into a new [2:10:29] phase here in scottsdale doing [2:10:30] this, but it is a very common [2:10:32] practice, and it's one that [2:10:33] helps expedite. [2:10:36] The reason why we do it, in [2:10:38] other cities, through my [2:10:40] research, is that we don't [2:10:41] always have enough staff to [2:10:42] expedite what's happening, [2:10:45] enough planners, enough [2:10:46] reviewers, enough engineers, so [2:10:48] then when you have a third party [2:10:49] doing it, it's just like over [2:10:51] time for public safety. [2:10:54] It helps expedite a process. [2:10:56] But professionally and you use [2:10:57] the right people that you need [2:10:59] to accomplish the right goals. [2:11:01] So this is a common practice. [2:11:02] I don't want anybody to think we [2:11:05] are doing something crazy. [2:11:06] >> Mayor Borowsky: all right. [2:11:17] All those in favor? [2:11:17] Okay. [2:11:20] Thank you very much. [2:11:21] All right. [2:11:25] Next we have item no. 4, repeal [2:11:28] of ordinance no. 4658 relating [2:11:30] to axon rezoning, this is a [2:11:33] request to adopt ordinance no. [2:11:36] 4698 which amends ordinance no. [2:11:37] 455, the zoning ordinance of the [2:11:39] city of scottsdale and [2:11:41] authorizing the repeal of zoning [2:11:44] ordinance no. 4658, which would [2:11:46] restore the prior zoning [2:11:50] designation for 44.7-acre-site [2:11:55] located at 8300 east axon way. [2:11:57] And there's one speaker, gail, [2:11:59] did you want to speak again on [2:11:59] this? [2:12:00] No, okay. [2:12:01] All right. [2:12:05] So I'll entertain a motion. [2:12:07] Go right ahead, COUNCILWOMAN [2:12:08] Whitehead. [2:12:09] >> Councilmember Whitehead: okay [2:12:09] , thank you, mayor. [2:12:14] I move to adopt ordinance no. [2:12:17] 4658, amending, 455, the zoning [2:12:19] ordinance of city of scottsdale [2:12:22] and authorizing the repeal of [2:12:24] zoning ordinance no. 4658 which [2:12:26] would restore the prior zoning [2:12:29] decision nature for the [2:12:32] 44.7-acre-site located at 8300 [2:12:35] east axon way. [2:12:35] . [2:12:37] >> I would like to -- are we [2:12:39] going to used the date? [2:12:41] I would like. [2:12:45] >> I would like to add that we [2:12:51] are requiring -- this is [2:12:52] repealed at the end of the [2:12:58] business day on 11-19 when we [2:13:00] receive the mou -- a signed mou, [2:13:02] I'd like to add that to the [2:13:03] motion. [2:13:05] >> Acting City Atty. Santaella: m [2:13:07] embers of the council, normally [2:13:10] once -- absent an emergency, an [2:13:13] ordinance is not repealed until [2:13:14] 30 days. [2:13:15] So I don't believe we can used [2:13:16] that provision. [2:13:20] >> thank you. [2:13:20] >> Mayor Borowsky: okay. [2:13:21] There's a motion. [2:13:23] COUNCILMAN Graham. [2:13:24] >> Councilmember Graham: thank [2:13:25] you, mayor. [2:13:27] So I'm going to ask probably [2:13:29] almost identical set of [2:13:30] questions that I asked about [2:13:33] this earlier, because for me, [2:13:36] this is just -- trying to wrap [2:13:39] my brain around this one. [2:13:41] We are repealing an -- we are [2:13:46] repealing a rezoning that was [2:13:47] authorized during the lame duck [2:13:51] in 2024 to reauthorize [2:13:54] industrial to mixed use. [2:13:56] And this undoes that, is that [2:13:58] correct. [2:13:59] >> Acting City Atty. Santaella: m [2:13:59] ayor and members of the council, [2:14:04] yes, that is correct, it repeals [2:14:05] the -- the zoning that's [2:14:07] basically on hold because of the [2:14:09] referendum, and it makes it go [2:14:12] back to the original zoning. [2:14:12] >> Councilmember Graham: I'm [2:14:18] trying to get to my point. [2:14:20] This vote removes the -- [2:14:21] > Councilmember Graham: this [2:14:25] vote removes the referendum, is [2:14:26] that correct. [2:14:27] >> Acting City Atty. Santaella: y [2:14:28] es, that's correct. [2:14:28] >> Councilmember Graham: I [2:14:31] talked about this before, but we [2:14:33] can't just -- in my mind, it's [2:14:36] just strange that we would go [2:14:37] and an applicant comes and asks [2:14:39] for a rezoning and gets it and [2:14:42] then we pass an ordinance to [2:14:43] undo it. [2:14:46] That, to me now in a normal [2:14:47] circumstance -- normal [2:14:48] circumstance, you can't do that [2:14:52] because that's, you know, a [2:14:53] downzoning, taking away property [2:14:55] value from them, and then they [2:14:57] can file a 207 challenge, which [2:15:00] is the -- which is the -- I [2:15:01] don't know if it's a [2:15:03] constitutional amendment, but [2:15:07] it's a state legislation that [2:15:09] says that cities and governments [2:15:11] can't downzone and reduce the [2:15:12] value of people's property. [2:15:14] So that's the reason why we [2:15:15] normally couldn't do it. [2:15:16] is that correct. [2:15:17] >> Acting City Atty. Santaella: I [2:15:18] think that's a good way of [2:15:19] looking at it. [2:15:22] The twist here is you have sb [2:15:27] sb1543 that basically upzones it [2:15:28] again. [2:15:29] >> Councilmember Graham: right. [2:15:31] So we go back and we say, okay, [2:15:32] we're going to delete that [2:15:36] rezoning from NOVEMBER 2024, and [2:15:39] then it would revert to [2:15:40] industrial. [2:15:44] In that case, sb1543 says if you [2:15:45] own industrial and meet all [2:15:49] these conditions, then you can [2:15:52] build, you know, apartments, it [2:15:53] goes to the other zoning. [2:15:56] Because of that, we don't think [2:15:58] that there's going to be a 207 [2:16:00] challenge because the property [2:16:01] owner is going to be happy with [2:16:03] what they get when this is [2:16:05] undone, is that correct. [2:16:06] >> Acting City Atty. Santaella: y [2:16:06] es, we don't believe there would [2:16:09] be any diminishment of value. [2:16:09] >> Councilmember Graham: what [2:16:11] would happen in the case -- [2:16:12] because I understand -- I don't [2:16:14] know anything about it, other [2:16:15] than the fact a legal challenge [2:16:17] is happening, what if the legal [2:16:20] challenge happens and the courts [2:16:25] rule against senate bill 1543? [2:16:27] Could -- and they say no you [2:16:28] can't do that law. [2:16:29] Could then the property owner [2:16:33] come to us with a 207 challenge? [2:16:34] >> Acting City Atty. Santaella: I [2:16:35] can't speculate on that. [2:16:36] We'd have to do the research, [2:16:39] and I'd have to provide that [2:16:40] legal advice in closed session [2:16:42] or via legal memo. [2:16:44] But it's a good point that you [2:16:44] raise. [2:16:45] >> Councilmember Graham: I [2:16:47] just -- I know it's -- I know [2:16:50] there's some kind of -- got to [2:16:52] run through the scenario, but it [2:16:57] seems to me that if I'm axon, [2:17:00] and the courts rule against [2:17:04] 1543, the city just took away my [2:17:06] rezoning, and then I'm -- then [2:17:09] I'm not in a good place and then [2:17:10] I MAY have cause to challenge [2:17:12] what we did here tonight. [2:17:14] So that's why this, especially [2:17:16] this, in addition to taking away [2:17:20] the referendum, I have serious [2:17:22] concerns about this particular [2:17:24] item, and so I might make a [2:17:27] motion, if we can just defer [2:17:30] this one for the time being and [2:17:32] maybe come back next week and [2:17:36] get some legal advice because I [2:17:38] don't want to expose us -- you [2:17:41] city attorney, your goal is to [2:17:43] minimize liability. [2:17:45] Exposure to the city, this could [2:17:47] put axon in hot water, this [2:17:49] could put us in hot water. [2:17:51] So I don't want -- maybe the [2:17:53] benefit of a little more time, [2:17:56] if I could move to defer this -- [2:17:58] defer this item for the time [2:17:59] being. [2:18:03] If I could get a second. [2:18:09] >> second. [2:18:10] >> Councilmember Graham: thank [2:18:11] you. [2:18:11] >> Mayor Borowsky: there was a [2:18:13] motion on the table, but there [2:18:15] was no second. [2:18:16] >> that's correct. [2:18:17] >> Mayor Borowsky: let's deal [2:18:18] with. [2:18:19] >> Vice Mayor Kwasman: can I [2:18:23] speak to council member graham's [2:18:24] motion. [2:18:26] MR. City attorney, sorry to [2:18:27] bother you -- I assume you're [2:18:29] walking to the podium. [2:18:30] >> Acting City Atty. Santaella: n [2:18:33] o. [2:18:33] >> Vice Mayor Kwasman: I just [2:18:40] want to remind everybody that [2:18:46] taaaze was willing to withdraw [2:18:48] all claims, including in support [2:18:50] and in support voting against [2:18:52] the referendum for a number [2:18:54] higher than what we just agreed [2:18:56] to just now. [2:18:58] So further -- furthermore, I [2:19:01] would like to ask the city [2:19:02] attorney, MR. City attorney, I [2:19:04] seem to remember in southbridge [2:19:07] there was precedent for withdraw [2:19:10] withdrawing a referendum prior [2:19:12] to referendum being held, is [2:19:13] that correct. [2:19:14] >> Acting City Atty. Santaella: y [2:19:16] es, that's exactly what occurred [2:19:17] occurred. [2:19:17] >> Vice Mayor Kwasman: there is [2:19:18] precedence for this, I want to [2:19:20] be clear, there's precedence for [2:19:25] this and that the actual backers [2:19:27] and founders of the organization [2:19:29] to promote the referendum was [2:19:30] okay with a number higher than [2:19:33] what we agreed to today. [2:19:35] So I just want to be very clear [2:19:36] that everybody knows the real [2:19:39] truth and to know that -- also [2:19:40] MR. City manager, I want to ask [2:19:43] two questions, if we -- if the [2:19:45] referendum were held tomorrow, [2:19:50] let's say, and axon were to win [2:19:54] the referendum, would they -- [2:19:57] would we still be withdrawing [2:19:58] the -- understand what we passed [2:20:00] today, and the memorandum of [2:20:03] understanding, would we still be [2:20:04] withdrawing their development [2:20:06] agreement, which would be the [2:20:08] same outcome as if the [2:20:09] referendum failed? [2:20:12] It would be the same outcome, am [2:20:15] I correct? [2:20:16] >> Acting City Atty. Santaella: m [2:20:20] ad. [2:20:21] >> City Mgr. Caton: if we held [2:20:25] met election, and the election [2:20:27] repealed, is that the question? [2:20:30] If it were to repeal, then we [2:20:32] still have 1543 that is in [2:20:33] standing. [2:20:34] >> Vice Mayor Kwasman: which [2:20:36] would put us back into the 1900 [2:20:39] apartment units that were [2:20:40] previous. [2:20:42] And so I am going to second, [2:20:43] thank you council member, I'll [2:20:45] second, but I also want to say, [2:20:48] if it were to pass, we would [2:20:51] still then be in the -- have the [2:20:53] ability to negotiate the very [2:20:55] ordinance that we just [2:20:56] negotiated just now. [2:20:58] Is that correct? [2:21:01] I'm sorry, if the referendum [2:21:02] failed, we would be able to [2:21:04] still negotiate the very same [2:21:07] mou that we just negotiated? [2:21:08] >> yeah, fair amount of [2:21:11] hypotheticals here, but MADAM [2:21:13] Mayor and vice mayor, if the [2:21:15] referendum were to be held, and [2:21:18] it failed, then one could argue [2:21:20] that you would go back to the [2:21:22] original ordinance which stands [2:21:25] at the 1900, I would point out [2:21:29] that stands in isolation from [2:21:32] 1543 still being in existence. [2:21:33] >> Vice Mayor Kwasman: one with [2:21:34] the development agreement and [2:21:34] one without. [2:21:36] At the end of the day, we are [2:21:38] still at 1900 apartments, which [2:21:41] was the impetus for the [2:21:41] referendum. [2:21:45] With that, I -- we have the [2:21:46] alternate motion on the table. [2:21:48] I don't think I can second the [2:21:49] previous motion until the [2:21:51] alternate motion is voted on. [2:21:56] So I'll yield the floor. [2:21:57] >> Mayor Borowsky: city attorney [2:21:58] attorney. [2:21:59] >> Acting City Atty. Santaella: t [2:22:00] hank you, I've consulted with [2:22:03] council for axon regarding the [2:22:03] prop 207 issue. [2:22:05] They pointed out in the original [2:22:07] application, there is a prop 207 [2:22:07] waiver. [2:22:09] They're also committed to [2:22:12] completing a new one related to [2:22:14] this project. [2:22:16] Or this mou. [2:22:18] So just wanted to bring that to [2:22:19] everyone's attention. [2:22:21] >> Mayor Borowsky: okay, thank [2:22:23] you, COUNCILWOMAN Whitehead. [2:22:23] >> Councilmember Whitehead: I [2:22:24] want to remind everybody, we are [2:22:26] elected to solve problems, and I [2:22:29] personally have been very [2:22:31] involved in referendum, our [2:22:33] citizen initiatives. [2:22:36] So 2018 I was one of the leaders [2:22:38] of the protect our preserve [2:22:41] citizens initiative, which did [2:22:42] pass overwhelmingly. [2:22:45] And when southbridge 2 was [2:22:46] approved, a very high density [2:22:48] development, I had voted no and [2:22:50] supported the citizens [2:22:54] referendum to repeal that. [2:22:56] And rather than waste more time [2:22:59] and more of your tax dollars, we [2:23:01] resolved, we solved the problem [2:23:04] right here on the dais, by [2:23:05] repealing that ordinance. [2:23:08] What we are doing today, as vice [2:23:10] mayor kwasman said, certainly [2:23:13] has precedence, and it certainly [2:23:14] is the more efficient route. [2:23:16] I just want to address the [2:23:19] comment that the people who [2:23:21] signed the referendum opposing [2:23:24] the 1800 plus apartments aren't [2:23:25] being heard. [2:23:29] So first of all, they are being [2:23:30] heard, because we have just [2:23:33] substantially reduced the number [2:23:37] and we split the units into [2:23:39] condominiums and apartments. [2:23:42] So in fact, that referendum [2:23:44] helped produce a better project [2:23:46] that I think every one of us up [2:23:48] here, whether or not we support [2:23:51] supported it tonight, we are [2:23:52] certainly happy to be here where [2:23:53] we are. [2:23:56] So I cannot stress enough that [2:23:59] the residents of this city were [2:23:59] heard. [2:24:01] and that's how we got to [2:24:02] tonight's agreement. [2:24:03] Thank you. [2:24:04] >> Mayor Borowsky: thank you, [2:24:05] COUNCILMAN Graham. [2:24:06] >> Councilmember Graham: thank [2:24:07] you, mayor. [2:24:11] This is a little bit -- this has [2:24:16] become a little bit byizan teen, [2:24:16] byzantine. [2:24:20] There is no precedence, because [2:24:22] we are talking about the [2:24:24] southbridge 2 referendum, and [2:24:26] with the southbridge 2 [2:24:29] referendum, there was never, [2:24:31] ever, a factor about a court [2:24:34] ruling it -- against it. [2:24:36] That was always about the [2:24:38] referendum, but there's never a [2:24:44] question about legality. [2:24:46] You know, axon will do what's [2:24:48] best for their shareholders, and [2:24:50] we should do what's best for our [2:24:51] residents. [2:24:52] That's what we should do. [2:24:54] I don't fault anybody for [2:24:56] pursuing those interests. [2:24:58] I don't agree, though, [2:25:00] 100 percent with council member [2:25:02] whitehead that voters got to [2:25:03] vote, got to be heard because [2:25:06] when you sign a referendum, you [2:25:09] expect a vote on the referendum. [2:25:15] And that's not the case. [2:25:17] So city attorney, you made a [2:25:21] comment that in the past case, [2:25:24] they -- the applicant signed a [2:25:26] 207 waiver and then you said in [2:25:28] this case they're committed to [2:25:32] signing a 207 waiver. [2:25:32] >> Acting City Atty. Santaella: y [2:25:34] es, mayor, members of the city [2:25:35] council. [2:25:37] They -- it's part of the [2:25:39] original application, they [2:25:40] apparently filed a 207 waiver, [2:25:43] and they've committed verbally [2:25:46] to sign a new one based on the [2:25:49] concerns that you raised. [2:25:49] >> Councilmember Graham: so in [2:25:52] that case, I -- since we have a [2:25:53] motion on the floor, we have an [2:25:54] alternate motion on the floor to [2:25:57] defer and deferral motion takes [2:25:58] precedence in our rules of [2:26:00] procedure, I would just say [2:26:02] let's just defer this until we [2:26:04] can get that signature in [2:26:08] writing and then we can -- and [2:26:11] then we can bring it back. [2:26:13] So -- I'm ready to vote, if [2:26:17] that's okay. [2:26:18] >> Mayor Borowsky: vice mayor [2:26:19] kwasman. [2:26:20] >> Vice Mayor Kwasman: I call [2:26:21] the question. [2:26:22] >> Mayor Borowsky: we are voting [2:26:24] on the alternate motion to [2:26:28] continue this to another date. [2:26:29] >> Councilmember Graham: I meant [2:26:30] continue, thank you. [2:26:31] >> Mayor Borowsky: so all those [2:26:38] in favor. [2:26:41] Or opposed. [2:26:43] All right. [2:26:46] Now we'll go to -- [2:26:46] >> Vice Mayor Kwasman: MADAM [2:26:52] Mayor, I second your motion. [2:26:53] >> Mayor Borowsky: it was -- [2:26:54] >> Vice Mayor Kwasman: council [2:26:56] member whitehead, I second your [2:26:57] motion. [2:26:58] >> Mayor Borowsky: I don't -- do [2:26:59] you want to speak to that. [2:27:00] >> Councilmember Whitehead: I [2:27:02] would like to amend my motion to [2:27:08] include the signing of the 207 [2:27:14] waiver. [2:27:15] >> Acting City Atty. Santaella: h [2:27:17] onorable mayor, members of the [2:27:19] council, your -- you're making [2:27:21] the repeal the zoning ordinance [2:27:25] contingent that they sign a [2:27:27] 207 -- prop 207 -- [2:27:28] >> Councilmember Whitehead: just [2:27:29] like to have that. [2:27:36] If that works for you. [2:27:37] I'll let you discuss. [2:28:18] I can pull that. [2:28:19] >> Vice Mayor Kwasman: would it [2:28:21] be cleaner if we put it in the [2:28:24] mou, if we amend the mou and put [2:28:26] it in the mou? [2:28:30] And can we reopen item no -- I [2:28:32] voted in the affirmative. [2:28:37] Can I call -- can I call it back [2:28:46] to -- [2:28:47] >> Acting City Atty. Santaella: t [2:28:49] here's a final item related to [2:28:52] the litigation, right, and the [2:28:54] litigation is -- to make sure [2:28:57] that axon actually signs the mou [2:29:00] with -- by the 19th. [2:29:03] How about you put a condition on [2:29:07] that they sign the mou by the [2:29:09] 19th, otherwise we file the [2:29:11] cross claim and they also sign [2:29:12] the prop 207 waiver. [2:29:13] >> Councilmember Whitehead: I [2:29:15] accept that for my motion. [2:29:18] I just want to be clear -- for [2:29:19] my motion. [2:29:22] I drop -- I drop -- my original [2:29:23] motion stands and I just wanted [2:29:27] to be clear we had a verbal [2:29:28] agreement, in government we like [2:29:31] to go ahead and dot our I's and [2:29:32] cross our t's. [2:29:33] I'm fine with it in the next [2:29:34] motion. [2:29:35] Why thanks everybody who [2:29:36] gathered for that one. [2:29:37] >> Mayor Borowsky: okay, let's [2:29:38] go ahead and vote on that. [2:29:41] All those in favor. [2:29:52] Indicate your vote or opposed. [2:29:53] Okay. [2:29:55] Last item on the special meeting [2:29:57] agenda, item no. 5. [2:29:59] And that is litigation [2:30:00] authorization. [2:30:01] A request to authorize the [2:30:04] interim city attorney to file [2:30:06] any appropriate counter claim, [2:30:09] cross claim and third-party [2:30:12] claim in the taaaze versus state [2:30:14] of arizona and city of [2:30:22] scottsdale litigation. [2:30:25] I have two people indicating -- [2:30:26] actually I think there's no one [2:30:29] left to speak on this one. [2:30:33] Gabby hitchcock. [2:30:34] Okay. [2:30:36] So vice mayor kwasman. [2:30:37] >> Vice Mayor Kwasman: thank [2:30:38] you, MADAM Mayor. [2:30:42] I move to authorize the interim [2:30:43] city attorney and/or his [2:30:45] designees to file any [2:30:46] appropriate counter claim, cross [2:30:50] claim and third-party claim in [2:30:51] taxpayers against awful [2:30:54] apartment zoning exemptions [2:30:55] versus the state of arizona, [2:31:03] city of scottsdale, cv2025- [2:31:06] cv2025-034961. [2:31:10] With a proposal to sunset -- [2:31:13] right, is that -- how would I. [2:31:14] >> Acting City Atty. Santaella: I [2:31:16] would suggest that -- I only [2:31:19] file it unless we do not receive [2:31:22] the signed mou from axon along [2:31:24] with the prop 207 waiver by the [2:31:28] close of business on the 19th. [2:31:30] >> Vice Mayor Kwasman: thank [2:31:33] you. [2:31:35] NOVEMBER 19, sorry. [2:31:37] Apologize. [2:31:38] All right. [2:31:41] Would you like me to repeat the [2:31:43] whole thing. [2:31:44] >> Acting City Atty. Santaella: y [2:31:44] es. [2:31:45] >> Vice Mayor Kwasman: MADAM [2:31:46] Mayor, I authorize the interim [2:31:48] city attorney and designees to [2:31:49] file any appropriate counter [2:31:51] claim, clause people third party [2:31:54] claims in taaaze versus state [2:31:57] arizona, city of scottsdale, cv [2:32:04] cv2025-034961, unless the [2:32:05] memorandum of understanding is [2:32:09] signed by axon enterprises, by [2:32:11] close of business day NOVEMBER [2:32:15] NOVEMBER 19, 2025, and axon [2:32:19] delivers a signed 207 waiver by [2:32:22] the close of business day [2:32:25] NOVEMBER 19, 2025. [2:32:25] >> second. [2:32:26] >> Mayor Borowsky: all right. [2:32:29] i see COUNCILMAN Graham wants to [2:32:30] speak. [2:32:31] >> Councilmember Graham: thank [2:32:32] you, mayor. [2:32:33] I'll make an alternate motion [2:32:34] for the same motion, but the [2:32:42] deletion of the two conditions. [2:32:47] >> I'll second that. [2:32:48] >> Mayor Borowsky: let's take a [2:33:01] vote on the alternate motion. [2:33:02] Okay. [2:33:04] And COUNCILMAN -- I'm sorry, [2:33:05] vice mayor kwasman. [2:33:08] Let's go ahead and take a vote [2:33:12] on that motion. [2:33:19] Please indicate your vote. [2:33:20] All right. [2:33:22] That concludes our business for [2:33:23] this afternoon. [2:33:24] Sorry for the delay, everybody, [2:33:28] that was here for other matters. [2:33:29] But at this time I'd like to [2:33:32] move to adjourn the special [2:33:36] council meeting and we will move