Twenty-dollar bills.
Governor Katie Hobbs has reactivated the Greater Arizona Development Authority to give private financing to assist rural communities and tribal governments with public infrastructure projects.
That authority, which has been inactive for 10 years, is a state infrastructure bank that uses its funds as collateral for rural and tribal communities that do not have access to traditional capital markets.
“GADA is a proven tool for assisting economic development in our rural communities," Hobbs said in a press release. "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."
In the 17 years it ran, the authority supported 84 projects statewide by issuing over $574 million in bonds to rural community projects, like firehouses and community centers. The Arizona Finance Authority, which oversees GADA, expects to finance $50 to $100 million within the next year.
“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,” Robin Romano, Board Chair of the Arizona Finance Authority, said.
The bonds are repaid through project revenues or tax revenues from the cities the authority assists.
“Reservation communities and tribal lands in Arizona remain underserved when it comes to access to capital and other resources essential to infrastructure development,” Maria Dadgar, the Executive Director of the Inter-Tribal Council of Arizona, said. “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.”
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