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Scottsdale council authorizes outside legal review of new Axon-related state law, caps spend at $100,000
Summary
The Scottsdale City Council voted to retain outside counsel to evaluate legal options related to newly enacted state legislation (SB 1543) affecting the Axon site; the engagement was authorized with a cap of $100,000 to obtain an expert opinion before any decision on litigation or other action.
Scottsdale City Council on May 6 authorized the city attorney to hire outside appellate counsel to evaluate legal options related to recently enacted state legislation that affects development at the former Axon parcel, directing the city to cap the initial engagement at $100,000.
City Attorney Sherry Scott told council she had interviewed several firms and recommended retaining Dominic Drey of Greenberg Traurig, a former state solicitor general with extensive appellate and constitutional litigation experience. Scott said the firm would analyze possible legal theories and prepare advice for council; the recommendation is for analysis and options, not an automatic decision to file suit.
Council members debated whether to engage counsel now or instead continue negotiating directly with Axon to preserve a working relationship. Supporters of retaining counsel said the city needs independent expert analysis of the new law’s constitutionality and the effect of the statute on city processes and referenda. Opponents urged further negotiation with Axon and cautioned against spending taxpayer money prematurely; several council members said they wanted to reserve litigation as a last resort.
After discussion a motion to adopt the resolution authorizing outside counsel was made and seconded. The mayor accepted a friendly amendment to cap the initial authorization at $100,000; city staff said an initial opinion and briefing could be prepared within that amount and the council could return for additional authorization if detailed litigation were later necessary.
The city attorney clarified the authorization does not obligate the city to file suit; it funds legal analysis and strategy development so council can make an informed decision. Council members who supported the authorization said having an expert opinion would allow them to negotiate from an informed position with Axon and to understand legal exposure. Those who opposed asked the city manager and counsel to continue dialogue with Axon while delaying any expense.
The council voted to approve the engagement with the $100,000 cap. City staff said the chosen outside firm will report to council in executive session about legal options, and any decision to commence litigation would require a separate council vote.
