Arizona's rural and tribal communities are set to receive a much-needed boost in infrastructure financing with the revival of the Greater Arizona Development Authority (GADA), as announced by Arizona Governor Katie Hobbs and the Arizona Finance Authority (AFA). GADA will open a new round of assistance effective from August 1, 2024, aiming to assist these communities in developing public infrastructure projects. GADA functions as a state infrastructure bank and relies on private financing to help these areas, particularly on projects relating to transportation, clean energy, water supply, and workforce training facilities.
The move comes after a significant pause in the program's activity, with GADA being dormant for nearly a decade before this reactivation. It previously supported 84 projects statewide by issuing $574 million in bonds to rural community projects, the portfolio encompassing a variety of infrastructure projects from firehouses to community centers, and libraries to municipal complexes through transportation improvements, according to a statement obtained by the Office of the Arizona Governor. Robin Romano, the new Board Chair of the Arizona Finance Authority, expressed that the board aims to finance between $50 and $100 million within the next year; highlighting the significance of investing in such areas for Arizona's prosperity.
The urgency of revitalizing GADA is echoed by Tom Belshe, Executive Director of the Arizona League of Cities and Towns, who emphasizes the need for resources to cater to the aging infrastructure of Arizona's smaller settlements. Despite the financial constraints these communities face, Belshe remains optimistic about the potential GADA holds as a provider of technical assistance and critical project financing, the Office of the Arizona Governor's announcement detailed.
GADA's reactivation has garnered positive feedback from tribal representatives as well, Maria Dadgar, MBA, Executive Director of the Inter Tribal Council of Arizona, noted the disparities in capital access and the varied economic conditions among the 22 Tribes in the state and identified GADA as potentially being a valuable partner in addressing long-standing infrastructure needs. GADA offers to cover up to 50 percent of closing costs and provides technical support for its projects, repaying bonds through dedicated project revenues or future local tax revenues, and importantly, it operates without the necessity of state funds for its investments.
Mary Foote has assumed the role of GADA Director at AFA, managing daily operations, policy, and community engagement, with a focus on ensuring the initiative's success in bolstering economic development across the state. Foote is currently assessing the infrastructure financing needs of local governments as the program reboots its provision of meticulous assistance, according to the Governor's office announcement. Those interested in learning more or applying for financial aid can find application resources and additional information on GADA's website.
