TL/DR –
Scottsdale Mayor David Ortega received nearly half of his political contributions from employees of Riot Hospitality Group, a prominent local development company. The company had recently succeeded in blocking a competitor’s plan to build a new restaurant in Old Town Scottsdale. Despite accusations of favoritism, Ortega asserts his decision was based solely on concerns about the project, not the financial ties to Riot Hospitality Group.
Scottsdale Mayor Received Significant Funding from Local Development Company
Scottsdale Mayor David Ortega received significant campaign contributions from employees of Riot Hospitality Group, a well-known local development company. In the past two years, nearly half of Mayor Ortega’s political contributions have been donated by Riot employees. The company, owned by influential developer Shawn Yari, donated $36,000 to the Mayor since late 2022 and about half of that amount to Councilmember Tammy Caputi since January 2021. These figures were disclosed in campaign finance reports.
Controversial Vote Against Restaurant Development
The donations come under scrutiny after Ortega cast a crucial vote to block the development of Swags, a proposed upscale restaurant in Old Town that would have posed competition to Yari’s establishments. Ortega, however, denies any allegations of bias, citing concerns about the Swags project as the reason for his vote.
Yari’s Stake in Old Town Properties
Shawn Yari has substantial investments in various Old Town properties, including the Casa Amigos bar, the forthcoming $150 million Maya Hotel, and Calle Rosa, a fine dining restaurant that’s currently under construction. Newcomer developer Aaron Wager proposed his fine dining restaurant, Swags, that was supposed to replace a closed bar and situated near Yari’s properties.
Mayor’s Rejection of Swags Development
Wager requested city permission to build an additional floor for Swags, but the plan faced opposition from Yari, who voiced concerns over potential noise disruption towards his Maya Hotel. Ortega, along with two council colleagues, voted against Swags’ development. The Mayor explained that rezoning to accommodate an 85-foot-tall building in the area would set an unfavorable precedent.
Campaign Contributions from Riot Hospitality Employees
Riot Hospitality employees’ contributions to Ortega were within legal limits, staying under the per-person cap of $6,550 in 2022 and $6,650 in 2023. Four donations were made to Ortega in 2023 by various company employees, including Riot CEO Ryan Hibbert and spokesperson Lissa Druss. Druss clarified in an email that Yari himself does not participate in political donations tied to his company.
Ortega’s Connection with Riot Hospitality
Notably, Yari’s company sponsored Ortega’s State of the City event in January. Furthermore, Ortega and Councilmember Caputi were also seen holding big checks at an event where Riot’s nonprofit, Riot Gives Back, presented $40,000 to local charities.
Mayor Ortega insisted that his presence at the charity event had no connection with his vote against the Swags development, stating he was there to support the causes represented by Make-a-Wish and Riot Gives Back.
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