Local News

10X Audit Shows More than $7 Million Spent On Affordable Housing Project Despite No Homes Built

February 18, 2020

 The Town of Tusayan has reviewed the numbers and an audit shows the Town spent about $7 million on the 10X affordable housing project even though no homes have been built.

According to the audit Tusayan spent about $100,000 prior to the project to do environmental reports, surveys, studies, and to establish a Housing Authority.

The Town then spent about $6.5 million on planning, design, materials, and construction of 10X.  Of that, the Town retains almost $2 million in assets.

Finally, Tusayan spent $1.8 million because it did not follow county flood control measures and was hit with an injunction. Tusayan had to mitigate the site and do the proper flood studies.

No houses have been built because Tusayan had to stop work on the project for failing to seek approval of flood plain issues with Coconino County. Former Town Manager Eric Duthie was either unaware or ignored this requirement. Prior to construction, Tusayan sought to be its own flood plain administrator. That decision was challenged by a voter referendum. Under state law any council action that is being challenged by a referendum is put on hold until the voters weigh in. That means Coconino County had flood plain authority. Tusayan went ahead with the project, ignored the authority and was later hit with an injunction.

The months of excessive costs with nothing to show for it proceeded the voters’ decision to reject a budget override. That’s why the Town is currently under forced to operate under state spending limits of about $1,4 million a year.

Councilmember Becky Wirth pointed out that the audit shows no funds were misappropriated.

Mayor Sanderson said the 10X audit provides needed information, “What we do have is information none of us knew what the costs were. We got the details out. Yes it is looking behind but it does help us move forward in the future.”

Click here for a link to the audit.

The price tag for the project was expected to be about $14 million for the first 20 homes but Councilman Robb Baldosky, who has been the loudest voice for financial accountability regarding 10X, fears the costs could climb to $25 million.