Resolution 14-07 Resolution of Commitment

RESOLUTION NUMBER 14-07

NON-BINDING RESOLUTION OF COMMITMENT

WHEREAS, the City of Mountain Iron is a member of the Iron Range Community FiberNet, an entity operating under a joint powers agreement; and

WHEREAS, the City of Mountain Iron believes that communication infrastructure is as essential as transportation, electricity, water and sewer infrastructure; and

WHEREAS, the City of Mountain Iron believes that the availability of advanced communication infrastructure capable of delivering a minimum of 100 megabits per second to every resident is essential to a successful economic future, and

WHEREAS, Iron Range Community FiberNet believes that the development and operation of a wholesale telecommunication infrastructure that allows private companies to provide competitive voice, video and data services to local residents is the most efficient and lowest cost method of delivering communication services, and

WHEREAS, Iron Range Community FiberNet has proposed a financing structure for a fiber optic network that requires each community to contribute towards the costs of installing the fiber optic network in each own community; and

WHEREAS, Iron Range Community FiberNet needs a non-binding conditional commitment from each community to continue to pursue financial support from governmental and philanthropic investors for the proposed network, and

WHEREAS, the City of Mountain Iron will have an opportunity to make a final, binding financial commitment to the fiber optic network after it has reviewed final legal, financial, design and cost data at a future date, 

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MOUNTAIN IRON, MINNESOTA, that the City of Mountain Iron makes a conditional commitment to guarantee $802,145 of the senior debt issued by Iron Range Community FiberNet and contribute $762,038 to the project as an equity investment, and reserves the right to withdraw this commitment at any time.

DULY ADOPTED BY THE CITY COUNCIL THIS 2nd DAY OF APRIL, 2007.

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Mayor Gary Skalko
ATTEST:

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City Administrator