Council splits, votes to sell troubled iProvo network
This is an archived article that was published on sltrib.com in 2008, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

PROVO - Under tremendous pressure from Mayor Lewis Billings and his administration, the Municipal Council voted to sell the troubled iProvo network by a split 4-3 vote late Tuesday night.

Administration officials told the council that it must approve the $40 million sale to Broadweave Networks on Tuesday if the June 30 closing date for the fiber-optic network was to be met.

The city borrowed $39.5 million in 2004 to build iProvo.

But during a drawn out meeting that included public input and presentations by Broadweave executives, three council members complained that they were being rushed into the complex agreement without time to study its ramifications.

Councilwoman Sherrie Hall Everett said she felt like there was "a gun to my head."

"I'm troubled by this process," she said. "I'm troubled by the fact that the public hasn't had time to review all this information."

Councilman Steve Turley said the pressure being applied by the administration to sell the network to Broadweave Networks was causing him "discomfort."

"Forever a cloud will hang over this sale."

And Councilwoman Cynthia Clark said the deal "was dumped in our laps" by the mayor.

"I'm not sure I am with Broadweave as a company. They are young and they are inexperienced," she said.

Everett, Turley and Clark voted against the sale. But Midge Johnson, Cindy Richards, George Stewart and Cynthia Dayton gave it a thumbs up.

Stewart said one analysis showed Provo getting more for the network than it was worth on the open market. He noted that since its inception, iProvo has lost $14 million on the network and would lose another $15 million in the next five years.

Johnson said the city had done "due diligence" putting together the sale and congratulated Billing's staff. Although she noted most of it was "over my head."

"I've had to rely on our attorneys. They have done a great job fleshing out my concerns."

csmart@sltrib.com

$40M deal with Broadweave has to be OK'd by Tuesday to meet closing deadline
Article Tools

Enter a search phrase.

Specify a Range

From  to

 

 
Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.