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Campaign Won 2019–2020 Politics, 2010s

The Southbridge Two Referendum, 2019–2020: Old Town Petitions Against 150-Foot Towers

In December 2019 the council approved Carter Unger's Southbridge Two, a 10-acre redevelopment along the canal with a 150-foot hotel and condominiums near 140 feet, by 4 to 3. Old Town property owners formed a committee and filed about 17,000 referendum signatures in a month. The clerk certified them and a judge turned back the developer's challenge. On April 7, 2020, at his request, the same four council members repealed the approval, and the towers were never built.

Illustration for The Southbridge Two referendum: the council approved towers up to 150 feet on the canal by 4 to 3; old town property owners filed 17,000 signatures; the same four members repealed their vote rather than face the ballot VOTE

The 30-second version

  • Carter Unger, son of Southbridge's builder Fred Unger, proposed Southbridge Two for about 10 acres west of Scottsdale Road along the canal: office, retail, condominiums and a hotel, with buildings up to 150 feet.
  • On December 4, 2019 the council approved it, 4 to 3: Lane, Klapp, Korte and Milhaven for; Kathy Littlefield, Phillips and Whitehead against.
  • The Committee for the Preservation of Old Town Scottsdale filed on December 5 and turned in about 17,000 signatures; 11,930 valid ones were needed, and the clerk certified the petition on January 31, 2020.
  • A Superior Court judge ruled for the committee, and Unger dropped his appeal.
  • On April 7, 2020, at Unger's request, the council repealed the rezoning by the same 4 to 3 split, ending the referendum.

The question

Should the council's approval of Southbridge Two, ten acres of hotel, office and condominium towers up to 150 feet along the Arizona Canal and the Fifth Avenue shops, stand, or go to a public vote?

The sides

The developer and the council majority

Old Town needed more people living and working downtown to survive, and a billion-dollar project would supply them. The developer had done more public outreach than any before him.

“We did a downtown study that said what currently exists in our downtown is not sufficient to support our downtown, and we need to have more people that live and work in the area.” Councilwoman Linda Milhaven, before the December 4, 2019 vote, as reported by the Scottsdale Progress

Jim Lane, Virginia Korte, Linda Milhaven

The Committee for the Preservation of Old Town Scottsdale and its allies

The towers broke the scale of Old Town and the city's own guiding principles, and the project's promises did not match its plans. Residents should decide.

“The idea that the same legislative body can undermine the referendum process is a trampling of voter rights.” Councilman Guy Phillips, April 7, 2020, city transcript of the council meeting

Bob Littlefield, Kathy Littlefield, Guy Phillips, Solange Whitehead

How it ended

The committee filed about 17,000 signatures, the clerk certified the petition on January 31, 2020, and a Superior Court judge rejected the developer's challenge. At the developer's request the council repealed the rezoning and cancelled the development agreement and the sale of the city's Rose Garden lot on April 7, 2020, 4 to 3, so the referendum never reached the ballot.

What holds it: Habit April 7, 2020

The short version

Southbridge, the restaurant-and-condo block on the south bank of the Arizona Canal, was Fred Unger’s work. After his death in 2018 his son Carter proposed a second phase: about 10 acres west of Scottsdale Road, more than a million square feet of offices, shops, condominiums and a hotel, with buildings up to 150 feet. On December 4, 2019 the council approved it, 4 to 3.

Old Town property owners formed a committee the next day and gathered about 17,000 signatures in a month. The clerk certified them, and a judge threw out the developer’s challenge. Rather than face a November vote, Unger asked the council to undo its approval, and on April 7, 2020 the same four members did.

The approval

Unger pitched it as an economic engine: “It’s over a billion dollars of economic output. And then once the project is complete, we’re looking at $290 million of ongoing annual economic impact.” It included the sale of the city’s Rose Garden parking lot. Councilwoman Linda Milhaven argued that downtown needed “more people that live and work in the area,” and Virginia Korte that “by working together we can find the balance between preserving the charm of Old Town while continuing to make it more contemporary.” Mayor Jim Lane and Suzanne Klapp joined them. Vice Mayor Kathy Littlefield, Guy Phillips and Solange Whitehead voted no.

The referendum

The Committee for the Preservation of Old Town Scottsdale, formed by two neighboring property owners, filed with the city on December 5. Its chair warned the council that if it tried to kill the referendum “they’re going to hear from a lot of the citizens.” By the January 3 deadline it had turned in about 17,000 signatures; 11,930 valid ones were needed, and on January 31, 2020 the clerk found the petition sufficient. Unger sued. A Superior Court judge ruled for the committee, and Unger dropped his appeal: “We have made the decision to not pursue further legal actions.” Former councilman Bob Littlefield was an ally of the committee.

The repeal

Unger then asked for repeal, saying he had lost several properties in escrow. On April 7, 2020, in a meeting held by telephone early in the pandemic, Korte moved and Milhaven seconded a package that repealed the rezoning ordinance (Ordinance 4449) and, by Resolutions 11773 to 11776, the abandonments, the development agreement and the sale of the Rose Garden lot. It carried 4 to 3, the same split as in December. City Attorney Sherry Scott cited “an Arizona Attorney General opinion in 1982”: “when the subject matter of the referendum has been repealed, any vote on the measure would be without legal effect.”

The city’s transcript records both sides. Klapp: “I believe this is an actual win for the people who opposed this project.” Milhaven: “I think this is a very, very sad day for Scottsdale,” and “this referendum will have a chilling effect and dampen any investment in our downtown.” Against, Kathy Littlefield: “Over 17,500 citizens signed the petition in only 28 days,” and “I also believe it is very much illegal to do this under the Arizona constitution.” Phillips: “The idea that the same legislative body can undermine the referendum process is a trampling of voter rights … The law is the law.” Whitehead: “I’m not going to be the one to deny a public vote.” Bisnow also quoted Phillips asking what the difference would have been “if we would have just waited for it to fail in November.”

The fight made building height the question of the 2020 city election. Its history echoes the Canals of Scottsdale, the canal-front project voters killed in 1999. The 2010s politics chapter sets it beside the decade’s other fights.

Who was in it

  • Carter Unger Developer, president of Spring Creek Development 2019–2020
  • Jim Lane Mayor, who voted for the project and for its repeal mayor 2009–2021
  • Linda Milhaven Councilwoman who moved the approval and seconded the repeal council 2011–2023
  • Virginia Korte Councilwoman who voted for the project and moved its repeal council 2013–2021
  • Suzanne Klapp Councilwoman who voted for the project and its repeal council 2009–2021
  • Kathy Littlefield Vice mayor, who voted against both times council 2015–
  • Guy Phillips Councilman who voted against both times and called the repeal improper council 2013–2021
  • Solange Whitehead Councilwoman who voted against both times council 2019–

By the numbers

Dec. 4, 2019, 4–3

Approved

about 17,000

Signatures filed

11,930

Valid needed

April 7, 2020, 4–3

Repealed

What the record doesn’t show

  • Who founded and funded the Committee for the Preservation of Old Town Scottsdale beyond 'two neighboring property owners,' and what each side spent.
  • The project's cost, given as $750 million by the developer and $574.5 million in another report.
  • Mayor Lane's op-ed calling the referendum 'unwarranted' is known only from a headline.

The timeline

  1. 2018

    Fred Unger, who built the original Southbridge on the south bank of the canal, dies in January; his son Carter takes over the family's real estate business.

  2. 2019

    On December 4 the council approves Southbridge Two, 4 to 3. The next day the Committee for the Preservation of Old Town Scottsdale files to refer it to voters.

  3. 2020

    About 17,000 signatures are filed by January 3; the clerk certifies the petition January 31. A judge rejects Unger's challenge. On April 7 the council repeals the rezoning, 4 to 3.

Questions people actually ask

What was Southbridge Two?

A 2019 redevelopment plan by Carter Unger for about 10 acres west of Scottsdale Road along the Arizona Canal and the Fifth Avenue shops, with office, retail, condominiums and a hotel and buildings up to 150 feet. The council approved it on December 4, 2019 and repealed the approval on April 7, 2020.

Did Scottsdale voters reject Southbridge Two?

They never voted on it. A citizens' committee gathered enough signatures to force a referendum, but before the election the council, at the developer's request, repealed its own approval, 4 to 3.

Why did the council repeal it?

The developer asked it to, saying he had lost several properties in escrow during the delay. City Attorney Sherry Scott cited a 1982 Attorney General opinion that once the subject of a referendum is repealed, a vote on it has no legal effect. Vice Mayor Kathy Littlefield called the repeal 'very much illegal,' and Councilman Guy Phillips called it 'a trampling of voter rights.'

Sources

Vernacular & LexiconThe Arizona CanalOld Town (versus Downtown)The townsiteFifth Avenue

Facts checked: October 23, 2026 • Written by • Every side is given in its own words from the public record; the site takes no side. Corrections are welcome.