TDS(TM) disappointed with Minnesota Court of Appeals decision
Today, June 2, a three judge panel of the Minnesota Court of Appeals affirmed, with a dissenting opinion by one judge, an Oct. 2008 decision by a District Court in the case between Bridgewater Telephone Co./TDS Telecommunications Corp. (TDS™) and the City of Monticello.
The Court of Appeals upheld the District Court’s interpretation of a statute to permit municipalities to use tax-free financing to enter into competition with tax-paying businesses to offer services traditionally provided by private enterprise.
The following statement can be attributed to Drew Petersen, director of legislative affairs and corporate communications for TDS:
“TDS is extremely disappointed with the decision handed down today by the Minnesota Court of Appeals. We feel our position has merit as indicated by the thoughtful dissenting opinion issued by Judge Hudson.
“TDS is a job-producing, tax-paying company with millions of dollars invested in the state of Minnesota and the community of Monticello. The Appeals Court decision sends a chilling message to the private business community operating in the state of Minnesota. The decision will likely discourage other private enterprises from doing or expanding their business in Minnesota. Further, the decision endangers the appropriate relationship between municipalities and private enterprise; it also allows municipalities tax-free financing to enter into competition with tax-paying businesses.
“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 25 Mbps at value-based prices. The neighboring townships also enjoy speeds above 10 Mbps.
“Make no mistake about it, Monticello is one of the most broadband connected cities, not only in Minnesota, but in the nation. In fact, in view of TDS’ development of a robust broadband platform in Monticello during the past year, it is questionable whether or not the City’s feasibility study supporting its own fiber project, which was premised on no broadband competitors and on which the revenue bond purchasers relied when they secured the bonds more than a year ago, is still accurate, and whether the city fiber project is feasible today.
“While disappointed with the courts’ decision, TDS remains proud to offer Monticello blazing fast speeds, reliable communications products, and great customer service.”
TDS has 30-days to file a petition for review of the courts’ decision.
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