TDS® announces legal settlement with City of Monticello, Minn.

Last year, the Minnesota Court of Appeals upheld a District Court’s interpretation of a state statute permitting the City of Monticello to use tax-free bond financing to enter the communications business to compete directly with services traditionally provided by private enterprises. 

That decision left open the question of whether or not the City was entitled to receive any of the surety bond proceeds TDS Telecommunications Corp. (TDS®) was required to post by Minnesota law in order to bring a legal challenge to the bond statute. A trial on that issue was scheduled for May of this year.

Today, TDS announced a mutual release settlement between the Bridgewater Telephone Co. and the City of Monticello of the surety bond issue.

The following statement can be attributed to Drew Petersen, vice president of External Affairs and Communications for TDS:

     “TDS is extremely pleased with the decision made by the City of Monticello to reach a mutual settlement with TDS related to the surety bond associated with the legal challenge to the bond statute.

     “While neither party acknowledges wrongdoing or liability, both entities share the mutual interest in mitigating additional legal costs. Moreover, the complete and full settlement represents an efficient conclusion to our prolonged business disagreement.

     “Throughout the legal debate, TDS has been honest in discussions with City leaders and the public. TDS has also invested millions of dollars and, in less than a year, placed 74 miles of fiber in protective conduit to build a complete fiber network covering the entire city. Every resident in the city can receive TDS’ Internet service, via fiber, at speeds of 50 Mbps at value-based prices.

     “While the controversy surrounding municipal government entry into the private enterprise, such as the telecommunications business, is always emotional and philosophical, TDS is pleased to reach agreement with the City of Monticello and looks forward to continuing to serve the citizens of Monticello, our customers, for decades to come.”

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