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Show Thursday, June 18, 2009 DAILY s iProvo does not have any cash, he said. They have opted to use Continued from Al that capital elsewhere and use this line of credit tomake the in the event that the iProvo en- bond payment. Broadweave CEO David Moon said they are planning to make those payments from other capital when possible, and they are working to get a its current owner.” thereis no simple correlation tity is returned to the city from Its current owner, Broad- Knowing that doesn't allevi- morestable cash flow. Hesaid ate oman Cynthia Clark’s concerns. between the number of sub- optic network from the city when they're drawing ont” currently has about 14,000 the city still holds the bonds, and Broadweave makes the weaveisn't making enough money to cover the payments and operating expenses. “It's hard to makesure those trig- reacquiring this asset. “We'recertainly working $268,000 to the city. The deal also included a $6 million surety, which the city would business to not ‘have something in place for if and when that day comes, and gers don't happen, to make sure that would not be a possibility,” he said. again andthe debt.” Cityfinancedirector John Borgetsaid the line of credit is active for Broadweave until economyas onereasonfor Broadweave's struggles and the unexpected difficultyin finding financing early in the weave,purchased the fiber- “To meit doesn't look ood scribers and cash flow; iProvo HERALD “We don’t wantit to come back, We want Broadweaveto be use to make those monthly payments should Broadweave default. For the last several months, Broadweave has opted to makeits payment against that surety. “T think that's what has caused people to begin to ask questions,” said Provo Mayor Lewis Billings, who has cham- pioned iProvo throughits con- ception against manycritics. Thatis legal through the contract upto a certain point andit should not be taken as an indication that Broadweave the city’s stuck with iProvo Billings pointed to the slow it has shrunk to the equivalent process. He's responded to of six months of payments, at which point the company can no longer use it to make the payment. That cutoff date is February. “Once they get within six months of having the surety run out, then the city has the optionto basically take over the network,”he said. timistic and give Broadweave its chance. The company has seven months to begin making payments without the surety, and he wantstogiveit that is from different revenues and seven months. successful.” ‘ Mayor Lewis Billings in a different category than “Wedon’t wantit to come the general fund money with back,” Billings said. “We want which the city operates. Pros paige tai for $40.6 mil- she said, adding that the messubscribers. They are also lion. The sale was not outright; .sage she’s getting is that Broad- workingto o> the city from monthly payments of about a7 million the city has on iProvois playing a role in this year’s tight budget, because the money for iProvo allcame from enterprise funds, which If the city got iProvo back Broadweaveto be successful.” So does Clark, but right now —a big if at this point, Billings said, andanassumption she’s more concerned about the hit to taxpayersif that very ed in, he said. thatis not fair to Broadweave to makeatthis stage — the _large budget item unexpectedly returns to the cityin the cussion started,” he said. Betweenthe sale and the city’s retaining the use of some would coverall of the operating costs and some of the bond payment, Borget said. The city “The administration needs to come up with an exit strategysothe cityisn’t caught off its own programming, Provo has gotten the value it needs, to make the rest of those payments at this point. That pos- said. “That’s when the iProvo dis- _ofthe sectors to broadcast revenues from the network nextfiscal year. would haveto dip into its funds guard whenit happens,” she Billings said. Healso disputed Councilman Steve Turley’s ofbut not discussing right suggestion that the $13.5 now; he said he wants tobe op- sibility is oneBillings is aware HeidiToth canbe reached at (801) 344-2556or htoth@ heraldextra.com. critics of the network bysaying that iProvo was needed because private weren't willing to provide broadbandto hook up the city’s fire departments andair- port offices, sothe city created anetwork. Schools, businesses and even residents, once they ‘saw whatwas available, want- ty Ein Queility Gtom hase www.phutah.com 756-7303 Burglar jued at approximately $3,000. Several thousands of “| would think he dollarsin damagehasalso been done to the Albertsons would probably be Since the Orem burglary on stores during the break-ins, the selling them. Otherwise, news release sai June2,at least three other Continued from Al Albertsons locationsin the he hasa pretty bad Salt Lake area have been hit smoking habit.” The 10 burglaries inthe two months previousall hadsimilar modus operandi andinclude Lt. Gary Downey Orem police stores in American Fork (on May10), Salt Lake City, West Jordan,Taylorsville, Draper, Kearns and Holladay, the news he said. He also appears to Nosecurity alarmsin Albert- sons weretriggered during the Orem burglary, Downeysaid Since the Oremburglary, Orem police Officer Justin Seitzinger has beenassigned a lead role in coordinating the information sharing in the string of related cases with other po- release says. have a beard or goatee. lice agencies. including the Oremcrime, the rity camera footage] there's a division, Downey said the case In at least two of the cases, burglaries took place at about “On onepart [of the secu 3.a.m., Downeysaid. fairly goodshot ofthe face,” Dowaeysaid. “Just watch for “I would think he would probably be selling them. Oth- Albertsons. erwise, he has a pretty bad smoking habit,” Downey said The suspect is described as a white male wearing all black clothing, including a black that kind of vehicle around any Maybe someone A veteran of the Orempolice has law enforcementinvestiga- tors scratching their heads. “In 25 years,I've never seen anything similar to this,” he will recognize him.” In the Orem case, thesus: said. pect was caughton store. se- tion about this case and the curity camerasfilling garbage bags with a total of 54 cartons related burglaries can contact Officer Justin Seitzinger with of several different types of ora white symbolonthe back, Camel and Marlborocigahoodie that has white lettering Individuals with informa: the Orem Departmentof Public FederalMoney= . $111,000) ‘Total|Credits| Safety at.(801) 229-7070. Taam Ena BLOM RAE Leeks ften New items arriving daily! 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