The Santa Cruz County Flood Control District has issued a public notice regarding the proposed rehabilitation of the historic Montezuma Hotel in Nogales, Arizona. The project, led by Allied Argenta, LLC, aims to convert the hotel at 120 N. Morley Avenue into a four-story residential complex with 50 apartments for senior housing.
According to the district, “the proposed rehabilitation of the historic Montezuma Hotel into a four-story, 50-unit multifamily residential complex by Allied Argenta, LLC is located within the 100-year floodplain. The District will identify and evaluate practicable alternatives to locating the project in the floodplain and assess potential impacts.”
The development covers approximately 0.74 acres and is part of an application for low-income housing tax credits through the Arizona Department of Housing. Approval from multiple agencies—including the Flood Control District and the City of Nogales—is required before construction can proceed. The review process includes an eight-step protocol for floodplain mitigation.
The site lies within the limits of the 100-year floodplain of Nogales Wash – Morley Avenue Split Flow. Flooding in this area is generally intermittent with low flows, and current assessments indicate that “the project is not anticipated to adversely impact the floodplain.”
As part of federal and state requirements for projects in floodplains, this notice seeks public input. The district states: “Provide an opportunity for individuals who may be affected by the proposed activity in the floodplain to express concerns and share information. Comments may include alternative sites outside the floodplain, alternative methods to achieve project goals, and mitigation measures.” The notice also aims to “disseminate information and request comments to enhance Federal and State efforts to reduce risks associated with floodplain occupancy and modification,” as well as ensure transparency when agencies participate in such actions.
Residents wishing to comment on the proposal must submit written feedback within 15 calendar days from March 6, 2026. Comments can be sent to Allan Sanchez, Floodplain Coordinator at Santa Cruz County Flood Control District, 2150 N Congress Dr, Suite 206, Nogales, AZ 85621 (phone: 520-375-7685; email: asanchez@santacruzcountyaz.gov).
While this initiative addresses local housing needs for seniors using state-administered tax credit programs, it comes amid broader community challenges. For example, only about one-quarter of students in grades three through eight passed the mathematics section of Arizona’s statewide assessment during the most recent school year (source). High school performance showed similar patterns on standardized tests (source), highlighting ongoing issues related to educational achievement within Santa Cruz County.
