For a brief moment, it looked like Axon had thrown in the towel on Scottsdale. ABC15 in Arizona quickly reported: “JUST IN: Axon has announced it is no longer with the City of Scottsdale in its plans to build a headquarters due to a ‘toxic environment’ related to the City Council.”

Whether ABC jumped the gun or Axon was being deliberately vague amid a tense back-and-forth, COO Josh Isner soon clarified his position. Isner announced via X that the company is “withdrawing from negotiations with the City of Scottsdale,” citing internal Council divisions that made a deal impossible.

“Unfortunately, Axon is withdrawing from negotiations with the City of Scottsdale. The internal politics of the City Council currently make it impossible to reach an agreement. I have never seen such a toxic environment in my life. We put a great deal on the table and we tried our best,” he said.

Isner thanked Mayor Lisa Borowsky for her engagement: “A sincere thank you to @MayorBorowsky for trying her best. She meaningfully engaged while 3 others obstructed.”

Borowsky responded with measured optimism, saying she appreciated Axon’s willingness to come to the table and engage in meaningful dialogue regarding the future of their development.

“Their team was willing to make concessions to their existing plan, which I appreciate,” she said. “Unfortunately, there were too many hurdles to overcome in order to move an agreement forward successfully.”

She continued, “I remain hopeful that future negotiations can result in a win-win agreement—one that works for the community and keeps this vital employer right where it belongs: in Scottsdale.”

Meanwhile, Scottsdale Councilman Adam Kwasman, who was not one of the three officials Isner implied were obstructionists, defended the talks as having been conducted in good faith by Axon.

Kwasman said, “Their offers were generous and would have benefitted both Scottsdale and Arizona as a whole. I now consider Josh a friend. I am saddened that my colleagues could not share in a vision that would have reduced approved density, reduced approved apartments, funded police, and built an incredible partnership between the city and one of America’s best companies. Despite today’s inability to reach an accord, I will continue to work tirelessly to find a solution.”

Representative Joseph Chaplik (R-3) has been critical of Axon throughout the process and accused Axon of acting in bad faith. He said, “Axon has not been operating in good faith since they bought the land in Scottsdale. They have divided the Republican caucus and they are now dividing the city council. They do not listen to the people of Scottsdale, who I represent. They have bypassed all proper channels to resolve their land use issues. Their tactics included bullying, threatening and secured close door meetings. This is not how a transparent company operates. If the threat to leave Scottsdale is serious, I call for Axon to publicly disclose which state and city they plan to move to.”

Axon’s Isner hit back directly at Chaplik with a snappy and below-the-belt response with the comments off. He said, “This is directly contrary to what City officials have said. Focus less on this and more on your history of IRS tax liens,” reacting with an old social media post from Chaplik’s 2020 tax issue.

Despite Axon walking away from negotiations, the company clarified that it intends to proceed with building its planned global headquarters in Scottsdale, just without further Council dialogue. The deal was supported by Senate Bill 1543, sponsored by Senator Frank Carroll, which created its own firestorm among Republican members of the Senate and House. (see the Globe’s April 16, 2025, story here).The

The Scottsdale City Council allocated $100,000 to seek legal counsel regarding the constitutionality of the Axon bill.