The Tucson Industrial Development Authority loaned Sheila Millette the money to buy Kingan Gardens, built in 1902.

 Kelly Presnell photos, Arizona Daily Star

A volunteer organization that has operated quietly in Tucson for more than 40 years, facilitating small businesses loans and down payment assistance for homebuyers, is working to expand its presence in the community.

The Tucson Industrial Development Authority has appointed its first CEO to oversee changes to the financing organization, with plans to hire additional dedicated staff.

Dre Thompson, the former executive vice president of Startup Tucson, has stepped into the role.

โ€œIDAs, though somewhat under the radar, are how American cities are built,โ€ she said. โ€œWith unprecedented federal dollars flowing to infrastructure, it is more important than ever to be investing wisely in Tucsonโ€™s long-term growth, affordable housing, innovation, climate adaptability, and leveling the playing field for communities that have been underserved by traditional financial institutions.โ€

Created by the city mayor and council in 1979, the IDA is charged with supporting affordable housing and downtown and neighborhood small businesses and nonprofits.

It has overseen more than $700 million in financing for projects in Tucson.

The nonprofit is self-financed by interest on its loans.

โ€œOur goal is to bridge the gap between public and private financing,โ€ Thompson said.

With a diverse background that began in New York and Chicago working on gang violence prevention and early childhood education, Thompson was drawn to Startup Tucson for its support of young entrepreneurs.

Overseeing the IDA, she hopes to support those startups and dreamers who want to bring more experience to Tucson.

โ€œSometimes theyโ€™re really difficult projects that die on the vine,โ€ she said. โ€œI realized the IDA is a critical piece and really wanted to be a part of the puzzle.โ€

While charging interest rates that are higher than traditional lenders, the IDA also takes chances on local businesses and nonprofits that major banks pass on.

Sheila Millette, owner of Kingan Gardens, hosts about 100 events a year at the downtown property.

Sheila Millette, owner of event venue Kingan Gardens, was working on a traditional bank loan when someone told her about the IDA.

She had been leasing her space 325 W. Franklin St. for about two years when she tried to buy it.

IDA was able to loan her the money to buy the building.

โ€œMy goal was always to purchase it and have my office there,โ€ Millette said. โ€œIDA is a wonderful group that helps businesses who might not have gotten funding with conventional loans.โ€

The property, built in 1902, hosts about 100 events a year โ€” mostly weddings.

โ€œI love downtown and how it has evolved and changed,โ€ Millette said.

Johnny Gibsonโ€™s Downtown Market, 11 S. Sixth Ave., needed a loan to make capital improvements to the grocery store at 11 S. Sixth Ave., and got it through an IDA partner, the Business Development Financing Corp.

โ€œThe bridge that it gave for us to be able to come in and start a business in the food desert that was downtown was made possible because of their mission,โ€ said owner Paul Cisek.

Kingan Gardens, 325 W. Franklin Street, is among the small businesses that have benefited from the Tucson Industrial Development Authority.

Jim Wilcox is the financial consultant for the Warehouse Arts Management Organization (WAMO), which supports local artists.

When the city of Tucson agreed to let the group buy the Toole Shed at 197 E. Toole Ave., the condition was that it always be used for art-related purposes.

He said traditional banks scoffed at the caveat, afraid they couldnโ€™t sell it if the loan defaulted.

The IDA was able to help.

โ€œItโ€™s essential to have these financing tools,โ€ Wilcox said. โ€œTheyโ€™re critical for nonprofits.โ€

WAMO currently leases space in its properties to more than 50 artists in three spaces, the Toole Shed; the Steinfeld Warehouse, 101 W. Sixth St.; and the Art & Design Center at 3776 E. Grant Road.

Aside from helping small businesses and nonprofits, the Tucson IDA also works with partner agencies to offer down payment assistance to homebuyers.

The courtyard and ceremonial backdrop at Kingan Gardens in Tucson.

The organization receives no public funds, grant support or donations and operates on revenues generated from its business activities.

A recent analysis of the Tucson IDA by the Council of Development Finance Agencies recommended the hiring of full-time staff to increase its presence in the community.

In the new framework, there are plans to expand the team quickly, Thompson said, and hire a chief financial officer and operations manager.

She said the Phoenix IDA has a staff of around 12 people, and Tucson wants to emulate that model.

Visit tucsonida.org for more information.

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Contact reporter Gabriela Rico at grico@tucson.com