On Tuesday, July 26, the Cook County Board of Commissioners with the support of the Cook County Broadband Commission “handed” $4 million of 1 percent tax funds to Arrowhead Electric Cooperative with no restrictions, accountability or oversight.
Unlike other 1 percent referendum projects which will leave taxpayers with something physical in the asset column…a library, a golf course, swimming pool, playground equipment, etc…this give-away to AECI will leave nothing in the hands of those who will pay for it…nada…zip.
And unlike other 1 percent projects, this request from Arrowhead Electric was enthusiastically passed by the county board in a matter of minutes without a period of public disclosure.
When Arrowhead Electric embarked on its fiber optic quest, AECI proclaimed it would proceed without a need for county funds. Along with its partner Pulse Broadband, AECI was awarded $16 million in federal grant and loan money. After realizing they underestimated actual costs drastically, AECI has since incurred an additional $5+ million loan debt and including the 4 million in 1 percent tax funds, the $16 million project has now grown to over $25 million.
Ten million of those dollars have now been added to AECI’s long-term debt, which previously totaled $15.87 million in 2010…talk about raising the “debt ceiling”!
Whether Arrowhead Electric’s fiber optic endeavors become profitable or not, should the infrastructure be sold at sometime in the future, the taxpayers will not see a dime from the proceeds. The fiber optic infrastructure is the sole property of Arrowhead Electric Cooperative Inc.
Perhaps the county board could explain why awarding these tax dollars to AECI and its for-profit partner Pulse Broadband would be any different than giving taxpayer dollars to CenturyLink, Qwest or AT&T. Could these companies request 1percent tax funds? Has the county board exposed itself to legal action by other fiber optic providers wishing to do business in Cook County?
The “Fiber Optic Follies” continue….
Bob LaMettry
Grand Marais
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