Two Bills Could Strip Scottsdale’s Zoning Powers On Apartments
What You Need To Know
Scottsdale’s apartment surge is hitting another gear. A new bill working its way through the Arizona Legislature could rip zoning control from city governments and fast-track dense housing projects that have long faced resistance.
At the center of it all is a massive corporate campus proposal in North Scottsdale. But make no mistake, this bill is about more than one plan. It could open the floodgates for apartment construction across Greater Phoenix.
New Bill Targets Zoning, Headquarters, and Apartments
Lawmakers introduced a strike-all amendment that replaces a previously unrelated bill. The new version forces cities like Scottsdale to allow apartment buildings and hotels on land zoned for light industrial use if the site is part of an international company’s headquarters campus.
• Applies only to cities with 200,000 to 500,000 residents
• Scottsdale falls squarely within that range
• No public hearings would be required
• Housing must be tied to corporate headquarters
• At least 20 percent of units must be reserved for employees
• Referendums on these projects would be bypassed entirely
• The move directly aligns with a major North Scottsdale proposal
This isn’t a zoning tweak. It is a shift in power, and it puts cities on the sidelines.
Also Read: Axon’s Headquarters Plans Could Sidestep A Referendum Fight
Voter-Backed Referendum May Be Nullified
Frustrated by a high-density project approval, residents launched a successful signature drive to force a citywide vote. The referendum is scheduled for late 2026. But the new bill could cancel it outright.
• Petitioners collected enough signatures to qualify
• The vote would decide whether a project can move forward
• The state law would override local referendum rights
• Critics say it undermines direct democracy
• Supporters argue cities have delayed housing too long
• The bill could take effect before ballots are printed
If the legislation passes, voters may never get the chance to weigh in.
Multifamily Units Already Spreading Across The City
The proposed legislation is controversial, but it comes at a time when Scottsdale is already in the midst of a massive apartment buildout. Hundreds of units are under construction, with thousands more in the queue.
• Nearly 3,000 units are actively being built
• Over 6,000 more are in the development pipeline
• Many are near the Loop 101 and Scottsdale Road
• Several high-end projects include rooftop pools and luxury amenities
• One project alone includes more than 1,300 units
• More than 30,000 multifamily units approved since 2010
• Over 12,000 of those have already been built
Whether voters like it or not, Scottsdale’s multifamily wave is already well underway.
Tensions Rise Between Local Officials, State Leaders, and Developers
City officials argue they are willing to compromise. They have asked for a smaller number of units, less density, and more neighborhood compatibility. Meanwhile, state leaders are pushing for a faster process, and developers want decisions now, not years from now.
• Local officials say a revised plan is within reach
• State lawmakers want less delay and more construction
• Developers are pushing for quicker approvals
• Critics say the process is being hijacked by special interests
• Accusations of aggressive lobbying have surfaced
• The proposed project site includes offices, apartments, and a hotel
• Nearby apartment construction is already active
Everyone wants movement, but nobody agrees on the direction.
Also Read: Petition Threatens Axon’s Future Scottsdale Headquarters Plan
Control, Growth, and What Comes Next
The heart of this fight is not one location or company. It is about whether cities should keep the power to manage their own growth or whether the state of Arizona should take the lead to fix Arizona’s housing crunch.
• The state wants housing near jobs, free from local delays
• Cities want to protect their land use process
• Residents want more input on major changes
• Developers want clarity, consistency, and approvals
• This bill could set a new statewide precedent
• Other cities are watching closely
This is not just about Scottsdale. It is a test case for the next phase of growth in the Valley.
Decision Coming Soon From The Full Legislature
The bill has cleared committee, but it still needs a full vote from the Arizona House. If it passes, the North Scottsdale project would likely move forward without any more city votes or public hearings.
City officials continue to say they are ready to negotiate. But the state may no longer be interested in talking. A final vote could come soon, and if it does, Arizona’s growth game will have a new playbook.
In the meantime, Scottsdale’s apartment boom is not slowing. And the rules for what gets built, and who gets to decide, are quickly being rewritten.
Also Read: Large Developments Will Reshape Scottsdale In The New Year