Rural Arizona Rejoices: Major Financing Authority Makes a Comeback for Vital Infrastructure Development

(The Center Square) – The Greater Arizona Development Authority (GADA) is set to make a significant comeback, focusing on financing vital projects through bonds.

The bond application period closes on October 1. GADA’s funding initiative primarily targets rural and tribal areas within Arizona, covering projects such as libraries, water infrastructure, roads, and public buildings. It plans to finance $50-100 million worth of projects in the upcoming year through two rounds of funding. These funds can cover half of a project’s closing costs, with bonds repaid via tax revenues or dedicated project revenues.

Mary Foote, former Chief Executive Officer of Pipeline AZ, will lead the authority.

“GADA is a proven tool for assisting economic development in our rural communities,” Governor Katie Hobbs stated. “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.”

Part of the Arizona Finance Authority, GADA funded over $574 million in bonds from 1997 to 2014, supporting 84 projects before its cessation. With its return, the Arizona League of Cities and Towns backs the initiative, emphasizing the importance of addressing the needs of rural municipalities.

“Too often, the needs of Arizona’s rural cities and towns aren’t supported or resourced adequately. Leaders are frequently seeking resources to address aging infrastructure,” said Tom Belshe, Executive Director of the Arizona League of Cities and Towns. “We are optimistic that through the relaunch of GADA, local leaders will gain a new resource for technical assistance and critical financing for priority projects.”

Historically, GADA has supported projects like Cottonwood’s recreation center and library ($19.9 million) and Lake Havasu’s wastewater expansion project ($58 million in its fourth year). According to the 2020 United States Census, about 11% of Arizona’s population, roughly 766,272 people, reside in rural areas.