DavidsonNews.net

(This is an updated version of a story originally posted Feb. 1. Laurie Dennis contributed reporting for this update.)

Davidson and other area towns have spent “a fair amount of money” to determine whether their proposed purchase of the local cable TV system is a good idea, Town Manager Leamon Brice said Thursday night. But those studies show that the purchase can work.

“We found that it is a very viable business concern to go forward with,” Mr. Brice told residents at a public forum on planning and development Thursday night. (See related story, “What’s in the cards for Davidson?” CLICK HERE>)

Lake Norman-area towns and the Mecklenburg County government are waiting on a New York federal bankruptcy judge to set a price for the system before moving forward with the deal.

While they wait, the towns are deep in negotiations over an interlocal agreement that would govern their joint ownership of the local cable TV system. The agreement would spell out how revenues and costs would be shared and how voting power would be distributed among the county and the towns of Huntersville, Cornelius, Davidson, Mooresville and Troutman.

Davidson would own 13 percent of the system. Other towns also would own portions equal to their share of the approximately 18,000 subscribers. “Each of us would be on the hook to pay the debt service,” Mr. Brice said. “But the business plan says it will make money and pay for itself.”

Despite his optimism, he said, “Some of the six entities are very squeamish about this whole thing.”

But he thinks those towns and residents should see the purchase as a historic chance to transform the region.

“Fiber-optic cable is the next important thing coming,” Mr. Brice said Thursday, comparing this to the arrival of rail transport. “The way I look at it, this is a golden opportunity for us to provide better service.”

Some critics of the deal have argued that local government is unfit to operate a cable system. Mr. Brice agreed to a point, joking, “I do not want to be the cable guy. I get enough calls as it is.”

However, the towns and county would not operate the system themselves. Instead, he said, they plan to hire an experienced private company to manage the system. And unlike a privately-owned company, the towns and county could put citizens and service ahead of profits, he said.

AWAITING A PRICE

The judge in New York will set a price for the system formerly owned by Adelphia, which went bankrupt. The system is temporarily operated by Time Warner Cable, which along with fellow cable giant Comcast has acquired most of Adelphia’s assets. But the county and towns have right of refusal to buy the local system, once the New York judge determines what it is worth.

For now, they are meeting to discuss the interlocal agreement that will establish the terms of their cooperation. Those talks drew headlines this week when reporters for some news organizations were excluded from a meeting they believed should be public. Officials disagreed over whether the meeting should be closed, but some said open meetings could hamper the sensitive negotiations.

Amid the waiting, critics of the deal also have raised questions about the ongoing legal costs the towns and county are paying. Mr. Brice said Wednesday, “All communities are concerned about the ongoing cost of this.” In Davidson, staff are under orders to limit time spent on the cable deal for now, apart from the interlocal agreement negotiations, he said.

It’s uncertain when the New York judge might rule, though there has been speculation it could come in the next month. After the judge sets a price, the towns and county would have 30 days to decide whether to buy the system.

LINKS

Feb. 1, Charlotte Observer, “Did cable deal talks break the law?” CLICK HERE>

Jan. 25, commentary by Bob Maier, “Cable deal makes sense,” including comments arguing against the deal. CLICK HERE>

Nov. 3, Our coverage of a public meeting on the cable deal in Davidson, with links to documents related to the proposal, CLICK HERE>

Filed under: Cable TV, Davidson town board, Links