PIMA — A new Circle K truck stop in Pima is one step closure to becoming a reality.
On Tuesday, the Pima Town Council unanimously approved pledging assets worth $2 million to help the McRea family obtain a $2 million USDA loan through Graham County Electrical Co-op to fund development of the truck stop.
“It’s exhilarating,” said MiQuel McRea. “It’s exciting to think that we’re going to be able to bring some commercial infrastructure to Pima.”
The loan requires 100 percent collateral in cash, or 200 percent in assets. The McReas said they are able put up $2 million in assets and the town’s pledge will cover the other half.
Town Manager Vernon Batty said the town’s attorney confirmed the action is legal.
“Then, the other question was risk; how risky is this for us?” Batty said. “So I did hire a consultant to do a risk analysis, and he said there’s very little risk involved here because, again, it’s the back half of the 200 percent collateral.”
Batty added that, as the Circle K is developed, it is added to the McRea’s list of assets put up for collateral, reducing the amount pledged by the town.
He also said the McReas have agreed to give the town a parcel of land for a Welcome to Pima sign as reimbursement for the pledging of assets.
Phil Cook, Graham County Electrical Co-op CEO, said the Co-op isn’t interested in foreclosure of town assets in the event the development does not succeed and the loan suffers a default. Instead, he said the Co-op would work with the town to recover the loan’s principle.
The McReas did not offer a timeline on when development might start, or location, as they are continuing to negotiate with landowners. However, the Town Council did add that the truck stop must be developed within town limits, or the pledging of assets would be withdrawn.
Editor’s note: This story was updated Tuesday, Nov. 14, 2024, at 11:35 a.m. to correct a misspelling in Vernon Batty’s quote.
