GILA COUNTY IDA (INDUSTRIAL DEVELOPMENT AUTHORITY)
FINANCING WITH THE IDA
In 1972, The Industrial Development Authority of the County of Gila (the “IDA”) was created and approved for incorporation by the Gila County Board of Supervisors as a non-profit corporation; designated by statute as a political subdivision of the State of Arizona. The governing body of the IDA is comprised of nine board members, appointed for six-year, staggered terms. These dedicated people serve the County without compensation. The IDA was created to take advantage of federal tax laws allowing tax-exempt financing for a variety of private concerns, including:
Research and development facilities
Pollution control facilities
While the IDA’s focus is on Gila County, its legal authority extends through the entire State of Arizona.
The IDA is unique, having certain limited governmental powers (e.g., issuing tax-exempt debt) while being able to act as a non-profit corporation and serve the needs of businesses, lenders, medical patients, home buyers and renter.
The IDA defines economic development as those activities intended to encourage the accumulation of wealth through the creation and retention of jobs; attraction, expansion and retention of businesses, expansion of the tax base and improvement of the business climate. The IDA’s economic development activities are guided by a series of goals and principles which serve to further the economic vitality of Gila County.
Why is the IDA so effective?
Confident we have the right mix of skills and expertise to pursue our mandate with agility and faster time-to-implementation, the Industrial Development Authority is a countywide entity with the vision and goal of spurring economic development. Utilizing creativity, agility and the application of entrepreneurial instincts to every aspect of business, identifying ways to do more with less, and shortening the path from planning to action has enabled the IDA to do more for Gila County business attraction than would otherwise be done.
No Reliance on Public Funds
The IDA is self-supporting. Sources of income include fees from past bond issues and fees paid by new users of the IDA’s services.
The Industrial Development Authority (IDA) is a conduit-issuer of bonds, formed in 1972 by the Gila County Board of Supervisors. The IDA enables bonds to be issued with a tax-exempt status but does not pledge County funds to repay the bond issues. These bonds are offered as an incentive to companies involved in manufacturing and processing activities, non-profit organizations to relocate to Gila County, or remain and expand in the County, thereby creating and retaining jobs, promoting economic revitalization, and providing much needed public and community services. Since its inception, the IDA has directly issued or facilitated over $50 million in bond issues. The IDA works closely with a team of qualified financial professionals whose goal is to process bonds in a timely, accurate and cost-effective manner.
Issuances of bonds create a win-win situation for all parties involved. Bonds benefit the borrower, investor and the communities in which the projects are located. Due to the tax-exempt status of bonds, investors benefit from the tax-free interest earnings received from the bonds. The interest income may be lower than other investments, but the tax savings may offset the difference. Bonds typically reduce financing costs by 20%-30% annually. In many cases these savings allow companies to purchase their leased facilities or acquire a new property, allowing them to expand or increase the capacity of their operations.