KEY STUDY FINDINGS
• The full capital cost is estimated at ~$194 million, incorporating a 30% contingency and inflation over a 5-year construction period, assuming a 40% take-rate.
• A City contribution of ~$150 million is required to establish a sustainable FTTP business from scratch, applying reasonable assumptions under a “base case”. This contribution is the investment the City would need to make for which there would likely be no return. The remaining capex can be supported from net revenues after operating costs.
• Entering into a partnership with one or more entities to lease fiber and run the business would reduce the City’s risks and potentially reduce costs. A partner could potentially leverage existing operations and assets, achieving economies of scale. 2 FTTP in Cambridge will likely require a City contribution
-A full report prepared by city staff is due Tuesday, and more hearings are needed before a decision to proceed. That would launch 18 to 24 months of market research, selection of a business model and a partner, negotiations and bonding out the expenses before years of installation.
TDLR: $19 million in free cash and an additional $2.5 million from a reserve fund is going to be used to decrease property tax collection in 7-1 City Council vote. Opponents argue money could be used for more important things - universal pre-k, affordable housing, rent relief
b00gerbear t1_jcxyzvk wrote
Reply to Support the New Housing Zoning Petition by blackdynomitesnewbag
Love it!