(The Center Square) – The Greater Arizona Development Authority is coming back to finance projects with bonds.
The bond application closes on Oct. 1, and it is primarily meant for rural and tribal areas in the state for projects ranging from libraries, water infrastructure roads, public buildings, and other purposes that require funding. The authority is planning to finance $50-100 million worth of projects this coming year through “two rounds of funding,” which can cover half of a project’s “closing costs” and has the bonds paid back through tax revenues or “dedicated project revenues,” according to a news release.
The authority will be led by Mary Foote, the former Chief Executive Officer of Pipeline AZ.
“GADA is a proven tool for assisting economic development in our rural communities,” Gov. Katie Hobbs said in a statement on Tuesday. “By reinvigorating this tool, we are providing an opportunity to leverage existing funds to invest in essential infrastructure all across Arizona. This will support our focus on priority projects such as transportation, clean energy, water supply, and workforce training facilities.”
It’s part of the Arizona Finance Authority and doled over $574 million worth of bonds starting in 1997 until the authority ended in 2014. In total, 84 projects were given bonds, according to the authority’s website.
The Arizona League of Cities and Towns, which plays a major role in municipal policy at the state level, supports the return of GADA.
“Too often the needs of Arizona’s rural cities and towns aren’t supported or resourced and leaders are often seeking resources to address aging roads, buildings, and other public infrastructure,” Executive Director Tom Belshe, Arizona League of Cities and Towns, said in a statement.
“Much like the League’s mission to provide assistance to the municipal governments across Arizona, we are optimistic that through the relaunch of the Greater Arizona Development Authority, local leaders will have a new resource for technical assistance and critical financing for priority projects,” he continued.
Previously, the project supported $19.9 million for Cottonwood’s recreation center and library, and $58 million for Lake Havasu’s fourth year of its “wastewater expansion project.” According to the 2020 United States Census, roughly 11% of Arizonans are classified as living in a rural area, which is around 766,272 people.
