Jim Wood, vice president of Coast Range Investments, told members of the business community the company would not contribute its portion of the $7.1 million for the north Belen interchange project for at least the next 90 to 180 days.

The project, which is a diamond-shaped interchange that would give motorists access to the west side of Interstate 25, would allow for easier freeway access in south and northbound directions.

Wood said the company is waiting for the approval of a loan guarantee for solar manufacturer Signet Solar Inc. through the federal Department of Energy, which is an assurance of a bank loan meant to back 80 percent of the first phase of the project.

The initial phase is a $220 million expansion of a four-part project that is expected to bring about 600 jobs to the area.

The New Mexico Department of Transportation is in the process of terminating the contract with the project contractor, but Michael Plese, an assistant DOT district engineer, said the department will pay to have the first phase of the contract completed.

The work will include building a new bridge, widening the existing bridge and installing lighting. The U.S. Department of Transportation Federal Highway Administration will not allow access to the west side of I-25 until there is enough funding to complete the entire project, according to Plese.

Plese said once the project stops, startup costs could range from $1 to $2 million in additional funding once the full amount is secured for the project. So far, mobilization costs have reached about $600,000.

Wood said Coast Range Investments, a company which started in 1991, operates with positive assets and has never borrowed funds for a project.

"This is not a cancellation of our obligation to finish the interchange," Wood told the group. "It is a postponement of the interchange because we do not want to deplete our funds."

A day earlier, on Tuesday, Feb. 16, State Sen. Michael Sanchez (D-Valencia) met with members of the same group, who were concerned about the lawmaker's desire to pull funds from the project and put the money into the state's reserve account.

Sanchez proposed an initiative to void about $6 million in capital outlay money that would go toward the interchange and infrastructure for Signet Solar.

But the House of Representatives approved an amendment introduced by Rep. Andrew Barreras, (D-Valencia) to take those projects off of Senate Bill 182, a $132 million initiative meant to void capital outlay projects. That bill was later approved and voided projects such as $22,647 worth of improvements to restore Belen's Doodlebug rail car and $32,000 for the expansion of the Fred Luna Senior Center in Los Lunas.

Wood told the group, which was made up of about 20 local business owners, the Coast Range was committed to finishing the interchange, and refuted claims by Sanchez, who said the company has not lived up to its promises of funding the entire project.

"As I remember, some of the conversations were that (Coast Range) was going to pay for everything and there would be no state funds used," Sanchez said at the meeting in Santa Fe. "The next legislative session, they came to legislature to ask for capital outlay money. They have continued to come to legislature, and have gotten capital outlay money."

But Wood said the matter is a misunderstanding. He said the company agreed to not take money from the city, not the state. He listed companies such as Hewlett-Packard and Fidelity as companies who have received state funds, and said deals between public and private entities have become common in recent years.

"We have unequivocally stated we would never take money from the City of Belen," Wood said. "We have never said we would not go to the state for funding, because the state does this all the time.

"Unless you are Warren Buffett, I don't think you have enough money to do it all by yourself," Wood said. "It has been a misunderstanding. We have always tried to help the City of Belen."

But Andrew DiCamillo, the city's planning and zoning director, said the city feels like "it has been held hostage" over the issue, and that Coast Range Investments "put all their eggs in one basket" by relying on Signet to come into the development, which is projected to bring 20,000 homes to the area over the next 30 years.

Coast Range Investments officials said they want the area's first user to help the company contribute to a portion of their share of the project.

"The bottom line is we're missing $4 million according to this agreement," DiCamillo said of a three-party agreement between the developer, DOT and the city.

The agreement says the developer will provide costs that exceed $4 million "based upon the project estimates in escrow prior to the letting of the construction project."

But Wood disagrees with the city's interpretation, and said the agreement is based on the company receiving approval from the federal government. Wood said he didn't receive an escrow agreement until December 2009.

Tibo Chavez Jr., who is running for mayor, asked Wood if the money was in the bank at the time the contract was signed in October 2008.

"To answer your question, yes, that $4 million was sitting in the bank," Wood said.

DiCamillo said he disagreed with those comments, and said he feels like the company will pull out of the deal.

"It wasn't sitting in our bank, and we are the fiscal agent," DiCamillo said.

DiCamillo said he plans to seek answers to whether the three-party agreement is binding, which could force Coast Range Investments to come up with the $4 million to fund the project. Wood said he plans to meet with Coast Range CEO Jim Foster within the next week to discuss funding options.

Neil Hise, president of CEMCO Inc., said he isn't as confident the project will go forward. He said he heard DOT officials say the state "would never consider the interchange" again once the project came to a halt.

"Never is a long time for a community and a business, and that pisses me off," Hise said.

But Rep. Elias Barela (D-Valencia) said he is confident the funding can be secured for the project.

"We all need to work together to make it work," Barela said. "Coast Range has not given us any reason to walk away from them. We need to rally together for good of the citizens, and keep working on it."