Apache Junction’s Industrial Development Authority should not be dissolved because of lack of activity, the city council decided recently.
The council on Nov. 1 and Dec. 6 discussed directing staff to dissolve the board but voted unanimously at the second meeting to keep it in place and in the future appoint people as needed. Councilmember Peter Heck was absent.
The Industrial Development Authority’s main purpose is to be a funding mechanism for tax-exempt, low-interest bond financing made available by federal law for certain eligible construction projects. State and federal laws restrict the types and cost of projects the authority may finance. In Arizona, the beneficiaries of such funding are almost always 501(c)(3) entities such as hospitals, private universities, charter schools, museums, etc., according to the city’s website.
Private issuers can use the bonds, Apache Junction Assistant City Manager Matt Busby said at the council’s Dec. 6 meeting.
“The type of bonding that is made available through an Industrial Development Authority allows a private entity to basically utilize the city’s municipal bonding capacity through the IDA, which is a lower cost of issuance. So it’s a way to help private issuers decrease their borrowing costs,” he said. “The main purpose of the IDA is to allow the private sector access to municipal financing to build large capital-type facilities and projects.
Councilmember Tess Nesser, who asked that the council look at dissolving or suspending the IDA, said the city of Apache Junction has not issued industrial bonds for more than three decades and few people volunteer to be on the commission.
“(W)e haven’t issued any industrial development bonds for 30-whatever-years. Every year this comes up to appoint people and nobody applies,” she said at the Dec. 6 meeting. “In speaking with our city attorney, we probably shouldn’t do way with it, dissolve it; but rather we should possibly consider suspending this commission... until any future date as needed if future bonds are ever to be issued.”
The commission, which presently has two of seven members, must be made up of city residents who are appointed for six-year terms. The Apache Junction Industrial Development Authority commission meets on an as-needed basis as outside entities request consideration of the financing tool, according to the city’s website.
Councilmember Gail Evans said the IDA should remain in place because Apache Junction is on the verge of a large expansion.
The council in October 2021 annexed 6,600 acres south to the State Route 24 alignment and development plans include thousands of homes.
“I understand we don’t want to have things we don’t need, but I’m not sure if this is the right time because we are so close to such a big expansion. Whether the sewer district and the water district go together and issue bonds, I don’t want to dissolve it. I guess we can suspend it or can you just deem it inactive?” Evans asked at the Dec. 6 meeting.
Other council members said the IDA commission should not be suspended.
“I’m in favor of just leaving it alone — just let it ride out,” Vice Mayor Christa Rizzi said.
“I second that,” Councilmember Robert Schroeder said.
Richard Dyer Managing Editor | East Valley @RHDyer
Meet Richard Richard Dyer has worked at Independent Newsmedia Inc. USA since 1987, starting his career in Apache Junction as a copy editor and being promoted over the years to work as the editor of the Mesa Independent, news services editor for the East Valley office in Apache Junction, managing editor for the East Valley office, news services editor for the East Valley office and eventually also for the newspapers at INI’s then-Chandler office, managing editor again and as a news editor covering Apache Junction/Gold Canyon and Queen Creek. He helped start the Florence Independent while the news editor covering Apache Junction and Mesa news. In January 2023, he became associate managing editor for the East Valley newspapers and in August 2023 became managing editor for the East Valley newspapers of Chandler/Tempe, Gilbert, Queen Creek, Florence, Mesa and Apache Junction/Gold Canyon, while also reporting on Mesa and Apache Junction/Gold Canyon.
Community: Since 2009, he has worked as a volunteer to design The Blue Guitar Magazine, Blue Guitar Jr. magazine and Unstrung magazine, which are projects of The Arizona Consortium for the Arts; and since 2014, has been overseeing the art submissions.
Education: University of Arizona with a master of arts in journalism and a bachelor of science in agricultural communication. Also continuing education at Mesa Community College in welding in a metal art sculpture class.
Random fact: Saw his first tornado on May 31, 2010, which was classified as an EF-2, as part of a stormchasing tour group.
Hobbies: He is an artist of welded-steel sculptures, selling his artwork at juried and non-juried art shows.
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