by Brandon Arcari, Vermont Business Magazine Opponents of the Burlington Telecom sale plan to ask the Vermont Supreme Court to side with the citizens of Burlington in opposing the sale of Burlington Telecom (BT) to Schurz Communications, a broadband media group based in Indiana. Opponents were expected to appeal the award of the Certificate of Public Good to the Supreme Court.
The opponents say that despite the $17 million debt that it owes to taxpayers, it has become profitable and could repay taxpayers over time. They lay the blame for the sale at the feet of Burlington Mayor Miro Weinberger, who they say will hand over BT to a private company for a fraction of what it is worth.
Last week, the Public Utility Commission in Vermont approved the sale of BT to Champlain Broadband, Schurz’s local subsidiary, which would provide the city with $6.3 million back, and $30.8 million to Bluewater Holdings.
In a press release, opponents said they believe that the sale of BT is not is in the best interest of Burlington citizens, and that because it won’t fully repay the $17 million to the city, the sale is illegal.
“In its May 9, 2018, order recognizing my clients’ right to intervene, the Commission agreed with us that Vermont law requires that BT reimburse $16.9 million to taxpayers,” said Jim Dumont, the attorney for opponents of the sale, in the release.
According to Dumont, the PUC found that it couldn’t rule in favor of the opponents of the sale because it doesn’t have the power to do so granted by the state.
“We disagree and we plan to ask the Supreme Court whether the Legislature intended to pass a law that only looked like it would protect taxpayers but actually has no legal teeth,” he said.
The opponents contend that the PUC did not say that the failure to repay was legal, it just said the sale can go forward by deciding the PUC had no authority to enforce the repayment of the illegally used funds.
"So far, this proposed sale has been based on ignoring the public will, and the law,” Intervenor Solveig Overby said in the release. "It is now left to the Vermont Supreme Court to enforce the law, and we are looking forward to having our day in court.”
"So far, this proposed sale has been based on ignoring the public will, and the law,” said Intervenor Solveig Overby. "It is now left to the Vermont Supreme Court to enforce the law, and we are looking forward to having our day in court," she added.
BT is the public infrastructure that is crucial to today’s economy and that of the future in Burlington, the opponents' statement said, much of the way that Burlington Electric was the economic engine of the previous century.
“Imagine the City giving away Burlington Electric,” said intervenor Dean Corren.
“We had predicted all along that whatever the PUC decided, the ultimate decision would be made by the Supreme Court. The stakes for the people of Burlington are just too high," Corren added. "While it's not as visible as the gaping hole in the middle of the city, the wound left by this great telecom theft will do the city far more harm, to both our economy and our democracy.”
The history of the sale has been contentious and complicated, stretching back to before an eight-hour Burlington City Council meeting in November 2017 that decided the winner between several bidders, including Ting, a telecom network in Toronto, Schurz, and a bid by local stakeholders called “Keep Burlington Telecom Local.”
Final votes on the issue were 8-2 for Schurz, with the two remaining votes for the local bid.
The opponents are comprised largely of Progressive Party members. The BT scandal broke under the administration of Progressive Mayor Bob Kiss. Kiss did not seek re-election in 2012 and Weinberger defeated Republican Kurt Wright. In his first re-election bid he defeated Progressive Steve Goodkind, who is a member of the opponent group and served in the Kiss Administration.
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