Axon CEO Confesses To Call

Following weeks of sidestepping the truth, last weekend Axon CEO Rick Smith finally admitted that a member of the company’s leadership team did, in fact, call Planning Commissioner Christian Serena’s employer and discussed Serena’s remarks about Axon at the commission’s January 24th meeting.

Smith’s confession came in response to the company being pressed by City Attorney Sherry Scott about the incident.

Wrapping up her investigation into the matter last Friday, Scott concluded that “It is apparent to me that an employee did contact Commissioner Serena’s employer to discuss dissatisfaction with Commissioner Serena’s public hearing comments.”

After hearing Scott’s ruling, Commissioner Serena told the Scottsdale Progress: “I am delighted that my statement has been validated. I commend the city attorney for verifying the truth.”

The day after the Voice of Scottsdale’s column last Thursday, events unfolded rapidly about the incident Serena first reported to the city attorney on February 14th:

Near the close of business on Friday, the city attorney emailed councilmembers the findings from her investigation. She included a statement from Axon attorney Charles Huellmantel in which he wrote: “I have no knowledge of any Axon employee or representative contacting the Commissioner’s employer to impact his vote at commission meetings or his opposition to Axon’s proposal.”

Apparently Huellmantel was left out of the loop, because less than 24 hours later, Rick Smith fessed up. While he finally divulged that the call was actually made, he disputed its purpose.

In a long, rambling email to Scott, Smith implied that Commissioner Serena, an employee of Merrill Lynch, had a conflict of interest on the Axon case and insisted that the city attorney look into it.

If that was designed to divert attention away from the real issue, it’s not working. In fact, several councilmembers who could eventually be asked to approve Axon’s proposal someday, aren’t impressed, according to City Hall sources.

Had Axon President Josh Isner not made that phone call on January 25th, this whole issue could have been avoided. Unfortunately, Axon turned the incident into a political sideshow that is having far-reaching repercussions for the company and the city.

In the end, Christian Serena concluded: “It’s important that we protected the integrity of the process for both the city and residents.”

Call Heard 'Round the City

It has been more than a month since a leader at taser manufacturer Axon made the call heard ‘round the city.

By now, many residents know about the regrettable phone call from Axon to Merrill Lynch to callout one of their employees, Christian Serena, for remarks he made about Axon while serving as a citizen-volunteer on the city’s Planning Commission.

What happened to Commissioner Serena could happen to anyone who dares to stand up to a powerful political entity and stick up for residents. So citizens will now think twice before submitting their name for an appointment by the City Council to serve on one of the city’s boards or commissions.

Recapping for readers who haven’t been able to follow the incident closely:

During the Planning Commission’s meeting on the evening of January 24th, Axon’s land use attorney Charles Huellmantel requested that commissioners approve the rezoning of 74 acres in North Scottsdale to allow the company to build 2,000 apartments and a 425-room hotel.  Under intense questioning from commissioners, it was discovered the zoning case was poorly prepared and incomplete. As a result, commissioners granted Axon more time to prepare the case and resubmit it at a future date.

Since the company had already taken months to prepare their case, Commissioner Serena was the only member of the commission to oppose giving Axon more time to resubmit their case.

The next morning Serena’s boss at Merrill Lynch told Serena his company had received a call from someone who said they were part of Axon’s leadership team and wanted to discuss Serena’s vote the previous evening. But not with Serena. Shortly thereafter, Serena reported the incident to City Attorney Sherry Scott. She responded that she found the event “concerning and upsetting,” and she intended to investigate Serena’s accusation.

One of Scottsdale’s many points of pride is the number of residents who donate their time to serve on one of the city’s many boards and commissions. Because volunteers are one of the city’s chief resources, it’s crucial that they are respected for the role they play and the responsibilities they take on, both big and small.

That means the city must ensure that volunteers don’t fear being harassed in any form.

After more than one month since the incident occurred, representatives of Axon still refuse to admit or deny to the city that a member of the company’s leadership team made the intimidating call to Commissioner Serena’s employer. That’s raising suspicions not only about Axon’s motives, but the city’s willingness to protect its volunteers from being bullied.

As long as Axon is allowed to stonewall the city, it increases the likelihood that residents’ eagerness to volunteer for boards and commissions will erode.  

 … and that’s on the city.

Looking Forward to 2024

The year is ending on an ominous note that could be a harbinger for many residents in 2024.

Linda Milhaven, who recently announced her candidacy for mayor, telegraphed her campaign’s intentions to target the city’s “naysayers,” whom she claims have been emboldened by Mayor David Ortega’s “lack of vision and action.” Milhaven has revived that term to label residents who don’t agree with her on any number of issues – especially the rate of growth and types of development. 

Because the two candidates detest one another, the Milhaven vs. Ortega race is expected to be a nasty affair. It’s anticipated to shape the dialogue about issues in the 2024 election, so it will likely trickle down to the contest for three seats on the City Council.

Traffic was the most talked about issue in 2023. Residents’ agitation grew over the difficulty of getting around the city that many drivers attributed to “overdevelopment.” Much of the problem, however, is compounded by the burgeoning number of those who commute from other Valley locations to work in Scottsdale.

Residents’ frustrations about overcrowded roadways led to the perfect storm when Councilwoman Solange Whitehead championed “road diets” to actually reduce the number of traffic lanes to add more bike lanes throughout the city – which didn’t end well for Whitehead. She was continually caught misrepresenting facts and backpedaling on the issue that instantly tarnished her credibility.   

Since traffic conditions will only be getting worse, they are expected to continue dominating residents’ concerns about how it will impact their quality of life in 2024. 

Two issues in 2023 centered on geography.

Recently reported Short-Term Rental statistics shocked residents:

City staff said that 1 million short-term renters are booking stays in Scottsdale every year – so it’s no surprise that the city is being challenged to keep up with the enforcement of ordinances created to minimize neighborhoods from turning into nightmares for residents. According to staff, 70% of all the STR properties, estimated at more than 4,000 different locations, are scattered throughout South Scottsdale.

Shifting from the previous center of controversy in the downtown area, North Scottsdale became the epicenter of the ongoing dispute over development. After purchasing 74 acres from the State Land Trust at the convergence of the 101 and Hayden Road, laser manufacturer Axon shared its plans to build a new headquarters, plus 2,500 apartments. The company’s proposal stalled when another developer blew the whistle on Axon, accusing the company of purchasing the property without disclosing that it planned to construct the largest apartment complex ever proposed in the city.

The project is now stalled as the company attempts to re-negotiate its purchase agreement with the State Land Department to accommodate apartments. That incident caused mega health care provider Banner Health, which like Axon had purchased land from the State Land Department, to put a proposed hospital near the same location on pause.

Meanwhile … back at City Hall, councilmembers reappointed three apartment-happy incumbents to the Planning Commission. Thanks to Councilman Barry Graham’s persistence, residents learned that most of the bond projects voters passed four years ago have been delayed and many are over budget. And councilmembers unanimously lifted the city manager’s “acting” title and restored his initial title as city manager.

Two of the most contentious issues in years were resolved in 2023 -- but not without giving the city and some councilmembers black eyes: The Rio Verde Foothills water controversy and the Homeless Shelter Hotel arrangement between the city and a hotelier.

The year ends, however, with several issues unresolved: Providing more downtown parking for visitors and residents, accelerating the funding and construction of bond projects and creating affordable housing.

"Resident Friendly" The New Measuring Stick

The election is over. The street signs are gone. And the dust is settling after what was arguably the most contentious election in Scottsdale history. 

Councilmembers Kathy Littlefield and Linda Milhaven were re-elected. Incumbent David Smith lost and newcomer Solange Whitehead won. The sales tax will be raised and the City Charter amended.

Some boast the election results have united the city and are taking it in a new direction. Others worry the city has come unhinged and may now be heading in the wrong direction.

Oddly, it was an election in which citizens were purposely polarized to supposedly "unify" the city.

The campaign to pass Proposition 420 pitted citizens against developers who voters were told want to "commercialize" the Mountain Preserve. That polarization tactic was also used to turn City Council races into contests between "resident-friendly" candidates vs. candidates who were "bought and paid for by developers."

According to Howard Myers, president of Protect Our Preserve, one of the groups that spearheaded the Yes Prop 420 campaign, this election "shows our citizens want council members who represent them, not developers who want to profit off of Scottsdale's desirability at the expense of our quality of life."

Yet, voters re-elected Linda Milhaven to her third term even though she received substantial support from developers, homebuilders and the real estate community.

Strangely, David Smith, failed to be re-elected. There has been no bigger "resident-friendly" member of the council than Smith. Ever the watchdog of taxpayer dollars, he repeatedly tried to eliminate the food tax that impacts those on low and fixed incomes. For four years, Smith has held developers feet to the fire on their projects and drawn their ire in return.

Another candidate, Bill Crawford, who was a staunch supporter of Prop 420, didn't make it into the winners' circle, either. Ironically, Crawford's campaign focused on a pledge to mediate compromises between neighborhoods and developers to help unify what many people believe to be a politically divided city.

The election proved "resident-friendly" is totally situational and is just a tool being used to continue an "us vs. them" strategy.

For those paying attention, November 6th should have put a lot of people on notice. The campaign that has been coined "Take Back Scottsdale" doesn't stop with developers. It's about systematically reforming city government and making it more responsive to citizens.

It's also about reconfiguring the status quo. That means no group or organization is immune from being called out for not meeting the broad criteria of being "resident-friendly" -- including Experience Scottsdale and the tourism community, Scottsdale Arts and the arts and culture community and the Chamber of Commerce and the business community.

Shaking up the downtown may also be on the so-called reformers' radar as well. The Entertainment District has long been an irritant for citizens who believe the bar and clubs are a blemish on the city's brand and a nightmare for nearby neighborhoods. So it will come as no surprise if there's renewed pressure on business owners to clean up their acts.

Have A Happy "Resident-Friendly" Thanksgiving!