Local Video
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| Stimulating fiber optics in Northfield? |
By: Suzanne Rook, staff writer
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Posted: Tuesday, March 31, 2009 10:37 pm
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CLARIFICATION - The story below was clarified to say that the anticipated cost for the network is $23.2 million, but that the city expects to bond for $35 million if the project moves forward.
NORTHFIELD — With federal stimulus money as the carrot, city leaders hope to push forward a plan to bring a fiber optic network to every home and business in town.
In a presentation last week to the city council, a city-hired consultant discussed how the network, which would transmit data over longer distances and at higher speeds than what is now available locally, would be a welcome addition to Northfield.
In his survey of city residents and businesses, 78 percent said they would consider switching their service (cable access TV, Internet and telephone) to the city if it installs fiber optic lines.
Estimated costs for residential Internet service would run from about $40 to $100 per month depending on data rates, according to the survey. Those prices are comparable to what current providers charge for slower data rates.
The city’s largest employers were especially excited about the prospect of such services, said Doug Dawson with CCG Consultants, noting that if fiber optic service was available during their conversations, the city would already have several customers.
While larger employers, Dawson said, are looking for faster data rates and the ability to teleconference, both large and smaller local businesses are interested in redundancy, a backup should their Internet service go down.
But it isn’t just the existing businesses that are looking for the data speeds fiber optic lines provide, said Economic Development Director Jody Gunderson. Companies which have recently inquired about land in town, including the 500 newly annexed acres west of the hospital, have all been very interested in a fiber optic network, he said, adding that the service could bolster Northfield’s appeal.
Ahead of the game
On Monday, city staff will ask the council to form of a work group to consider potential partners in building and operating the network.
The group, IT Director Melissa Reeder said, would consist of herself, Gunderson, the city’s finance and community development directors, as well as two councilors to be named. The group would then issue a request for information from communications providers interested in partnering with the city to build and operate a fiber optic network.
The group, along with the selected communications provider, would also apply for federal stimulus money to help pay for the project, expected to cost $23.2 million. Grants, aimed at unserved and underserved areas, will pay up to 80 percent of infrastructure costs.
To pay for the project, the city expects to bond for $35 million.
Reeder said the federal government is encouraging public/private partnerships as a way to help ensure such projects succeed.
Though all grants monies must be disbursed by September 2010, Reeder said it’s important Northfield push forward. The city, she said, is one of about 15 in the nation at this stage in its planning.
“Now, we’re ahead of the game, we have financial planning. If we don’t move now, by December there will be hundreds of cities (looking for grant money).”
If the city fails to get grant money, there are other ways to ensure a fiber optic network comes to town. But this one, Reeder and Gunderson agree, helps the city get the most for its money.
— Suzanne Rook can be reached at srook@northfieldnews.com or 645-1113.
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