The Office of Economic Opportunity, and the Arizona Finance Authority (AFA) are announcing the reactivation of the Greater Arizona Development Authority (GADA) with a new round of financial assistance open as of August 1, 2024. GADA, established in 1997, is a financing program that leverages private financing to assist rural communities and Tribal governments with the development of public infrastructure projects.
“GADA is a proven tool for assisting economic development in our rural communities,” said Governor Katie Hobbs. “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.”
GADA has been inactive for nearly 10 years. However, from 1997 to 2014 it supported 84 projects statewide by issuing $574 million in bonds to rural community projects, including construction of firehouses, community centers, libraries, municipal complexes and transportation improvement, in dozens of rural communities.
“As the new Board President, the revival of the GADA is a top priority,” said Robin Romano, Board Chair, Arizona Finance Authority which oversees GADA. Its mission to assist Arizona’s rural communities and tribal governments with the development of public infrastructure projects that enhance community and economic development is as important today as it was in 1997. Investing in our rural and tribal communities is vital to the success of Arizona. The Board looks forward to financing between $50 and $100 million within the next year.”
“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,” said Executive Director Tom Belshe, Arizona League of Cities and Towns. 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.”
GADA is a state infrastructure bank for rural and Tribal communities, pledging its funds as collateral to unlock bonding for cities and towns that lack access to traditional capital markets.
“Reservation communities and tribal lands in Arizona remain underserved when it comes to access to capital and other resources essential to infrastructure development,” said Maria Dadgar, MBA, Executive Director, Inter Tribal Council of Arizona. “Economic conditions vary amongst the 22 Tribes in Arizona and GADA could serve as a valuable partner in terms of providing capital to address ongoing infrastructure needs on Tribal Lands.”
GADA also provides valuable technical assistance and can cover up to 50 percent of closing costs. Bonds are repaid through dedicated project revenues or local future tax revenues. GADA has been self-sustaining since its inception, not needing state funds to continue investing in communities.
Mary Foote recently joined AFA as the GADA Director and is managing operations, community engagement, and policy, and will ensure GADA’s continued success in supporting economic development and infrastructure projects across the state.
“As we meet with local elected officials and leadership from rural cities and counties, we are learning about their financing needs for public infrastructure projects and believe there is a great demand for GADA technical assistance and financing,” said GADA Director Mary Foote.
