Windom City Council Moves Forward With WindomNet Sale
The Windom City Council moved forward Tuesday night with the proposed sale of WindomNet to Federated Rural Electric and Broadband, but not before a lengthy and at times contentious discussion over the sale, the purchase offer and the process used to reach the decision. The council voted 3-to-2 to approve the first reading of Ordinance 211, Second Series, which would authorize the disposition of WindomNet and its assets to Federated. Before the vote, Councilman Dennis Esplan questioned information Federated provided to the council after negotiations had concluded. Esplan pointed to an earlier Federated proposal of 7.9 million dollars and compared it to a later email that listed 6 million dollars, 400-thousand dollars in cash up front and 1.5 million dollars described as a future construction offset. Esplan said he believed the later information could be interpreted as a significantly lower offer and questioned why the city would proceed with Federated when other proposals were higher. He then stated he would recommend the Mayor veto any vote that the council made to approve.
Councilman Jason Sherman also questioned the additional information provided by Federated after negotiations had ended, including information about potential cell phone service and a commitment to hire WindomNet employees. Sherman said he believed the additional information gave Federated an unfair advantage because negotiations with the other companies had already concluded. Councilwoman Jenny Quade offered a different explanation. Quade said the council itself had asked Federated questions about cell phone service and the future of WindomNet employees. She said Federated had already indicated during a closed meeting that it was looking into offering cell phone service, and that council members specifically asked for additional information. Quade said Federated’s follow-up was a response to questions from the council, rather than an attempt to improperly enhance its proposal. She made the same point about the employee commitment, saying council members had repeatedly asked whether WindomNet employees would have jobs following a sale. Quade said Federated returned with that commitment in writing after discussing it internally, providing the council with documentation of a commitment it had previously made verbally.
Federated representative Scott Reimers later confirmed that explanation, saying the company put the employee commitment in writing so the council would have concrete evidence of what had previously been promised. Reimers also clarified Federated’s offer, saying the total value remains 7.9 million dollars when the 6-million-dollar original offer, 400-thousand dollars in cash and the 1.5-million-dollar construction offset are combined. Another major point of disagreement was whether WindomNet should be sold at all. Sherman argued that WindomNet remains a valuable city asset and that the city could benefit from future profits once its debt is retired. He pointed to improving financial numbers and said there is no emergency requiring the city to sell the system now. Councilwoman Quade defended the decision to sell, saying WindomNet faces increasing competition from companies such as Starlink, Verizon and Amazon. She said the city must consider what the telecommunications market could look like five or ten years from now and argued Federated would have a larger customer base from which to provide service.
Councilman Scott Benson also urged the council to move forward, saying the city has spent nearly two years working through the issue and that it is time to make a decision and move forward. During public comment, Windom resident Jordan Bussa urged the council not to sell WindomNet. Bussa argued that WindomNet is becoming profitable and that the city could benefit from keeping the system once its debt is retired. He cited financial figures showing the telecommunications fund was in the black as of June 30th, compared with previous year. Bussa also questioned why the city would sell WindomNet when competing proposals were reportedly higher. Following the discussion, the council approved the first reading of Ordinance 211 by a 3-to-2 vote. The second reading is scheduled for August 18th, with publication scheduled for August 26th. During the discussion, Councilman Sherman also said that if the first reading passed, he would feel comfortable recommending that Mayor veto the ordinance. The future of WindomNet remains one of the most divisive issues before the Windom City Council, with members sharply divided over whether the city should sell the system now or retain it and work toward future profitability.
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KNOW BEFORE YOU VOTE- PART TWO
One of the statewide races Minnesota voters will see on the August 11th Primary ballot is the race for United States Senate. Minnesota’s current U.S. Senator Tina Smith is not seeking re-election, so this is an open Senate seat.
There are contested Republican and Democratic-Farmer-Labor primaries.
On the Republican ballot, voters will choose one candidate from a field that includes Bob “Again” Carney Junior, Cynthia Gail, Ahmad Hassan, Joyce Lacey, Patrick Munro, Michele Tafoya, Adam Schwarze, Tom Weiler and Royce White.
The Democratic-Farmer-Labor ballot includes Kurt Michael Anderson, Angie Craig, Peggy Flanagan, George H. Kalberer, Peter John Murgic and Billy Nord.
The winner of each party’s primary will advance to the November 3rd General Election, along with any candidates who advance directly to the general election through other parties or qualifying independent candidacies. Remember, this is a partisan primary. You choose one party’s ballot and vote within that party. That’s KDOM’s “Know Before You Vote” we’ll take a closer look at the Congressional race affecting our area next.