Four developers will loan Santa Cruz County $47,500 to pave Palo Parado Road in Rio Rico, the next step in converting the dirt road to an all-weather shortcut to Interstate 19. But before county supervisors voted 3-0 on Dec. 2 to accept the contracts, a citizen who donated to the effort objected to the terms.

A truck crosses Palo Parado Road in Rio Rico. Photo / Denise Holley

Morning Star Ranch Development LLC, Rio Rico Properties, Inc., Presidio de Tubac Development Inc. and First United Realty will receive a dollar-for-dollar credit on future development fees, said Community Development Director Mary Dahl. Five years after the paving is completed, developers could request repayment of the money.

“I have a problem with these contracts,” said Kathi Campana, co-chair of the Baca Float Coalition.

Her group and residents who want to keep the Santa Cruz River crossings open gave $9,450 in checks to the county “without any expectation of repayment,” she said. “I went out to people and told them developers were contributing and they’re not.”

Bill Cox, a member of the planning and zoning commission, said the county should accept the loans.

“The developers are offering to front the money we need with the expectation they will be repaid with no interest within five years,” Cox told the supervisors.

He referred to the citizen and county effort that began early in 2008 to keep the Palo Parado rail crossing open, get funds for signals and eventually build a bridge over the Santa Cruz River.

“We’ve come a long way and we don’t want to stumble now,” Cox said.

When asked for a legal opinion, Senior Deputy Attorney Leslie Spira said Thomas O’Sullivan, chief civil deputy, had signed the contracts in November before he left for a year of military duty.

The Arizona Department of Transportation has listed the Palo Parado crossing on its 2009 array of projects, according to an ADOT document. This puts the county in line for $250,000 in federal 130 funds for rail signals and crossing gates.

“Would we lose the 130 funds if we don’t move forward with paving?” asked Board Chairman John Maynard.

County Manager Greg Lucero indicated that not paving the road could jeopardize that funding.

B So far, the cash-strapped county has collected $90,650 toward the $109,076 paving job, said Public Works Director Scott Altherr. GRG Construction will contribute $24,900 in in-kind services.

Crews from the City of Nogales will do the actual paving and striping and the county will reimburse its expenses, Altherr said. On Dec. 2, the City Council approved an agreement with the county for $3,814 for labor and equipment.

• Supervisors gave Community Development Director Mary Dahl a green light to apply for a Community Development Block Grant of almost $300,000 for the 1904 Courthouse. The county received a previous CDBG grant of more than $400,000 to pay a contractor to deliver and install an HVAC system in the parking lot uphill from the building, Dahl said. It will also pay for duct work to heat and cool the second floor.

But the building, occupied by Cochise College, still needs duct work to heat and cool the courtroom and the lower level, Dahl said. She hopes the county will land the competitive state special projects grant to finish that work and restore the upper parking lot after construction. The application is due in mid-February.

• Maynard opened the meeting by asking Zahira Jimenez from the Nogales High School Girls Cross Country Team to lead the flag salute. Then the supervisors recognized seven team members and their coach, Manny Gatica, for winning the state championship in the Arizona Interscholastic Association 4A Division 1.

Not only are they superior athletes, but team members maintain an average 3.5 GPA, said NHS Athletic Director Tim Colgate.