PIMA — The future of a Circle K truck stop in Pima took a step forward following an update by Town Manager Vernon Batty at Tuesday’s Town Council meeting.
Batty informed the council that the developers’ request for the town to help with collateral to obtain a loan was legal and a financial adviser said the town would face almost no negative consequence should the developer default on the loan.
That was good news to Councilman C.B. Fletcher, who said he supported the proposed development.
“Three or four years ago, ADOT did a survey on the commercial traffic running through the Town of Pima, and at that time it was 800 trucks a day,” Fletcher said. “(A new truck stop) should do very well. Like I said, there are only two other places and one is a station in Thatcher that is very difficult to get into. The other is a fuel dump on the east side of Safford that is used by a lot of trucks.”
In June, the McRea family requested the town put up $3 million in collateral to help them secure a $2 million USDA loan through Graham County Electric Co-op. The loan requires 200 percent collateral and, at the time, the family was able to secure $1 million in collateral.
During Tuesday’s meeting, Batty said the McRea family was able to secure additional collateral valued at about $2 million, reducing the amount of collateral needed from town to $1 million.
Legal counsel said the town must receive something of value in return for committing town assets as collateral, because the town may not give away anything of value for which tax revenue was used to purchase or maintain. Batty said future tax revenue from the truck stop does not count toward that requirement.
The McReas said a location has not yet been determined, as they continue to scout the area.
Build-out of the truck stop is estimated at about $5 million, and in June the McReas told the council the family is investigating another USDA loan program — the OneRD Guarantee Loan Initiative — for the remaining $3 million.
