Council approves option to purchase property for broadband data center

By Kelly Terpstra, kterpstra@charlescitypress.com

The pieces continue falling into place in an effort by Charles City to create a broadband, city-owned municipal telecom.

One more hurdle was crossed on Monday evening at a special meeting as the City Council passed a resolution to approve a $2,000 option to purchase property at 808 North Main, currently the location of Cal’s Auto Repair.

The city plans to use that property as its data center for the $15 million fiber-to-the-home network.

“That’s one more step forward on the broadband proposal that we’ve been working on also for a long time,” said Mayor Dean Andrews.

If the three-month option is exercised and the purchase is approved by the council, the city would buy that location for $170,000 and use at least some portion of the real estate to house the nerve center of the broadband network.

The property consists of two buildings and is located in an ideal spot, according to City Administrator Steve Diers.

“We have a couple ideas of use for that property. First and foremost, we’re looking to make that the location for the broadband utility. We’ll have equipment there for sure,” said Diers. “This meets the needs for space. This meets the need for location.”

The three-month option to purchase runs out on Feb. 22, 2020. The grantor and titleholder of the property is listed as Calvin Shultz in city documents.

The building would also have to pass inspection to be sold to the city.

“It’s good for the city to just hang on to this for awhile, at least initially,” said council member DeLaine Freeseman. “We could always lease it to the broadband. You don’t have to sell it to them.”

Diers said there is a possibility that a resolution will be brought before the City Council on Monday, Dec. 2, to create a board of trustees to oversee operation of the broadband utility.

He said he anticipates construction to take 18 months to completely build out and reach all premises that sign up for the service. Diers said the broadband utility – which does not have a name yet – could be offering up service a year from now.

“We crossed a major milestone this last week. Now all efforts go toward getting this thing up and running,” said Diers.