PIMA — A Pima resident has a plan to bring a Circle K truck stop to the community, but needs the town’s help to make it happen.
MiQuel McRea spoke to the Pima Town Council on Tuesday, to ask for the town to put up $3 million in collateral to help her secure a loan to pay for the truck stop.
The collateral is needed to secure a $2 million USDA loan; however, the loan would not be going to the McRea family.
“Under this program, the USDA provides a 0-percent-interest loan to local utilities; utilities being the (Graham County Electric) Co-op and things like that. Which they, in turn, pass those on to local businesses, which would then be the Circle K,” McRea said.
The loan requires 200 percent collateral, meaning McRea needs to come up with $4 million in order to secure the loan. She told the council her family could muster about $1 million, which is why she was asking for the town’s help.
She added that cost estimate to build out is $5 million. To get the other $3 million, she said she is looking at the OneRD Guarantee Loan Initiative, where the USDA would guarantee a loan through a commercial lender. That loan requires 25 percent down payment; however, the USDA loan through the Co-op would satisfy that requirement.
McRea did not say where she is looking to develop the Circle K truck stop, except that it would be on U.S. Highway 70, in town limits and within the 35-mile-an-hour zone. She also said she is negotiating with the land owner, whose current asking price is about five times current market value.
Town Manager Vernon Batty said the town does not have $3 million in cash, so collateral would have to be in form of assets if the Town Council wanted to move forward.
Members of the Town Council said they weren’t comfortable committing town assets without more information, and directed Batty and the town’s attorney to meet with McRea and her attorney for further discussion.
Information from that meeting will be brought back at the Town Council’s July meeting.
