Tuesday, 12 August 2008
In iProvo's wake, council hopes to fix property sale process Print E-mail
Ace Stryker - Daily Herald   

When Provo Mayor Lewis Billings told his city's Municipal Council in May it had less than two months to review and make a decision whether to allow the $40 million sale of the iProvo fiber-optic network, several of its members balked. There were hundreds of pages of technical information to pore through, not to mention questions about a practically unknown buyer, Broadweave Networks, and allegations of a sweetheart deal.

The Council approved the sale at the last possible moment under fears the deal would collapse if delayed, but not before some members expressed frustration at being asked to make a decision with so many unknowns still in the equation.

Now, those members are trying to make sure that doesn't happen again.

The Council will discuss at a work session today an ordinance that would require the mayor to outline his plans before asking the Council to put city property up for sale. The proposal is intended to keep Council members in the loop and facilitate better decisions, said Councilwoman Sherrie Hall Everett.

"It gives the Council more of a say in what he's proposing," she said. "I think it brings more balance to the process, and I think it will bring better results."

The details of the ordinance are still being ironed out and a vote on the matter is at least several weeks away, but Hall Everett said something needs to be done -- especially since iProvo was not the first time the Council has felt pressured to vote quickly. In December 2007, the Council voted in favor of developing Southgate, a shopping center in south Provo, under threat that anchor tenant Target would bail if the Council didn't act.

"The iProvo thing was kind of sprung on us. Southgate was kind of sprung on us," she said. "As a newcomer, I'm looking and I'm saying, 'Why are we doing it this way?' "

Council Vice Chairman George Stewart said he shares some of the same concerns, but also wonders if more Council involvement would make it harder for the mayor to strike good deals with groups that want to negotiate with just one person, rather than having to convince seven Council members.

"We want to be sure that the mayor can negotiate things," he said. "It's very much an open question."

The Council has effectively arranged a form of the proposed system once already since the iProvo sale: In July, it denied a request from the administration that a downtown parking lot be put up for sale.

On concerns from business owners that the loss of the lot would ruin their enterprises, the Council asked that more specific plans for the property be offered before it would allow the sale.

City spokeswoman Helen Anderson said the mayor's office has no comment on the issue until it has a chance to review the proposal in detail.

"That's the purpose of the meeting is to have that dialogue with the Council," she said.


Ace Stryker can be reached at 344-2556 or at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Article views: 1,087  
User Rating: / 2
PoorBest 
Discuss (3 posts)
Antispin Aug 12 2008 14:59:56
This thread discusses the Content article: In iProvo's wake, council hopes to fix property sale process

It essential for the council to fix this problem. Mayor Billings has a long term pattern of negotiating and planning "secret" deals and then dumping them in the council's lap with a gun to their head. The iProvo case is of course a glaring example of this. The "hurry up and say yes" approach has resulted in Broadweave taking control of a $60 million dollar asset without paying anything and having no financing. If there was ever a "sweetheart deal" this is the king. As if that was not bad enough Broadweave has no real operating capital and struggles to make payroll. Someone should have done diligence on this deal. It clearly did not happen. What happens when they destroy the asset and walk away?
#386670
megus Aug 12 2008 18:34:12
What happens when they destroy the asset and walk away?
========================================
We'll probably find out the answer to that question in about 2 or 3 years.
#386767
unaffiliated_person Aug 12 2008 19:16:48
megus wrote:
What happens when they destroy the asset and walk away?
========================================
We'll probably find out the answer to that question in about 2 or 3 years.


That is an easy answer. A creditor liquidates the assets and a less mismanaged company takes over the network. Happens all the time, no big deal. If anything, Broadweave managed to prevent more essential city services from taking a budget hit to keep the debt paying for the network afloat.
#386781


Discuss this article on the forums. (3 posts)
Generated in 0.14646 Seconds