With little comment, the county Board of Supervisors approved seeking a $2.55 million loan for two groups of Gateway of the Americas project landowners to pay for the already-pipelined South Alamo Canal.
At the time the canal was to be pipelined, the Gateway landowners paid $1.625 million up-front to the Imperial Irrigation District. Cost overruns raised the price to $2.55 million, with IID paying the additional amount.
The supervisors action was taken Tuesday. The loan would be obtained from the U.S. Department of Agriculture
If the 30-year loan is obtained, the money would go to pay back the landowners and IID, and then the landowners would repay the loan over the 30 years. By 2011, IID would pay its 75 percent of the pipelining to the USDA.
The landowners seeking the loan are Eric and Pauline Rice and Tony, Edward and Joseph Menvielle.
Gateway landowner John Pierre Menvielle said he would have to pay his share of the pipelining, with interest, to the other landowners when his development's final map get approved some time this year.