Agreements show developer committed funds

March 12, 2010

Councilor Jerah R. Cordova today began searching for answers to questions from business owners about who’s responsible for continuing the reconstruction of the North Belen interchange.

The reconstruction will provide access to Rancho Cielo, a 6,000-acre residential, commercial and industrial development located west of Los Chavez.

While work on the North Belen interchange continues, the New Mexico Department of Transportation (NMDOT) has been working to shut down the project because of insufficient funds to continue it.

The issue became contentious last month when Sen. Michael Sanchez brought to light that Coast Range Investments, the developer actively advocating the reconstruction, didn’t want to pay its portion of the project’s funding, delaying it.

According to agreements between NMDOT, the City of Belen and New Mexico Development Partners, a subsidiary of Coast Range Investments, the State of New Mexico was responsible for $4 million in funding for the project, which included planning and design, money that has mostly been spent.

The developer committed to providing the remaining funding, estimated at $4 million more.

After Coast Range Investment’s first “user” of Rancho Cielo — Signet Solar — was denied a federal loan guarantee, the developer decided to delay its contribution to the interchange project.

During discussions last month between local business owners and Jim Wood, vice president of Coast Range Investments, questions were raised about whether or not the developer is contractually obligated to provide its portion of the funding.

According to the agreements, the developer committed to funding all costs exceeding the $4 million appropriated by the state.

“NMDP [New Mexico Development Partners] will provide funding for project costs that exceed this $4,000,000.00 based upon the project estimates, in escrow prior to letting of the construction project,” reads an amendment to one agreement.

Wood has publicly disputed any commitment of funding by his company, though admitting he’s not an attorney.

According to one agreement, the City of Belen assumes “the lead role for the Project” and “is solely responsible for ensuring that the Project is carried out to completion.”

Because of the city’s contractual obligation and local business interest in the project, Cordova has requested representatives of NMDOT, Coast Range Investments and Signet Solar appear before the new city council at its April 5 meeting to provide a project update.

Posted in: Infrastructure