The right of Arizona citizens to send legislative decisions to the ballot is quickly becoming a tool for out-of-state special interests to hijack the economic future of our state.
There are two big examples of this manipulation of the referendum process playing out in the Valley right now.
Axon
For more than 30 years, Axon, a public safety technology company that makes Taser and bodycams, has called Scottsdale home. Founded by Chaparral High School graduate Rick Smith, the company is planning a major expansion of its corporate headquarters as part of a development of 74 acres near Hayden and the 101. The new investment would be approximately $1.3 billion.
The planning commission approved the company’s plans unanimously, which is estimated to have a $38 billion positive impact on our economy over the next decade. The Scottsdale City Council approved the plans last November, 5-2. A groundbreaking was scheduled for January. The future was looking bright for this homegrown tech success story.
But an out-of-state labor group, Worker Power, the political arm of the California-based UniteHere, was lurking, determined to disrupt the job-creation project.
When backroom efforts to strong-arm Axon into unionizing failed, the group teamed up with some local politicos to gather enough signatures to send the project to the ballot. Never mind that the planning commission approved the plan unanimously and that the council passed it.
Now the development is frozen as the clock ticks until the November 2026 election. Meanwhile, suitors from Florida and Texas have come calling. And why wouldn’t they? Axon brings $21 million in annual tax revenue into our state. What state wouldn’t want to lure them away?
Axon can’t wait. They’re ready to build and ready to grow. But an out-of-state labor union stands in their way.
VAI Resort
The VAI Resort in Glendale at the 101 and Cardinals Way will be the state’s largest resort. It will be another jewel in the state’s tourism offerings, not only enhancing Arizona’s ability to land major events to State Farm Stadium but also featuring world-class dining from renowned chefs, an entertainment venue that will attract top talent, spectacular pools, spa and fitness centers, retail offerings, and more, all attached to the new Mattel Adventure Park.
It’s bold. It’s ambitious. It’s exactly the type of project Arizona should cheer. It’s slated to create more than 2,000 new jobs and $2.2 billion in new tax revenues.
It’s also headed to the ballot. Zoning for a critical phase of the project was approved unanimously at the planning level and unanimously by the City Council, but just like with Axon, Worker Power has forced it to the ballot.
The union’s complaints have been a moving target. They opposed an economic development incentive. It was removed. They said the project would use too much water. The project will use 50% less water than the current zoning overlay. They claimed the project would eliminate a potential city park. That’s just false.
The special election is slated for May, with two ballot questions—one for a general plan amendment and one for the zoning—needing approval from voters to uphold the Council’s decision.
Worker Power
If Worker Power sounds familiar, it’s because Axon and VAI aren’t the California group’s first forays into Arizona.
This is the same outfit that lost badly last fall when Glendale voters soundly rejected Proposition 499, a measure that would have destroyed the tourism industry in that city. It’s the group that opposed a Tempe development that would have been home to the Arizona Coyotes. The team now plays in Utah. The group has been at the Capitol this year opposing a bill to keep the Diamondbacks in Arizona.
Give them credit; they’re consistent. If a project creates jobs and will enhance the Arizona economy, Worker Power is ready to block it, an odd mission for a group that claims to support the interests of workers. Apparently, no one told them that you can’t have workers without jobs.
Reforms
Current law is in desperate need of an update. A process that was supposed to be a break-glass option for concerned neighbors is now a veto stamp held by special interests hell-bent on stopping jobs.
State lawmakers and the governor should get involved. Even the most ardent local control champions can see that the process is broken.
Arizona needs to modernize its zoning laws to prevent big economic development wins from being derailed at the ballot box. Zoning approvals should be treated as administrative actions, not political footballs.
Add the same rigor to the signature-gathering process for local initiatives that exists at a state level. This includes requiring petition circulators to register with the city clerk, ensuring circulators aren’t paid based on a per-signature basis, and requiring any initiative that will cause city government to make new, unbudgeted expenditures, to identify a revenue source.
Direct democracy in Arizona isn’t going anywhere. It’s woven into the DNA of the state. But lawmakers have wisely put guardrails around the initiative and referendum process at a state level. After all, the stakes are incredibly high since state law makes amending a voter-approved measure nearly impossible.
The stakes are equally high at a local level. Without real reform, we’re going to lose jobs. Right now, an out-of-state labor union is dictating cities’ economic development. It’s time to put Arizona’s future back in the hands of its own people.
Danny Seiden is the president and CEO of the Arizona Chamber of Commerce & Industry
This column may be reproduced. Cover image of Scottsdale City Hall available under the Creative Commons Attribution 3.0 Unported license.
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