Orange Beach, Ala. – (OBA) – At its June 21 council meeting, Orange Beach will consider a $1 million grant to Point Broadband to help build out the “backbone” fiber line from State Route 161 west along Canal Road.

At one time, Orange Beach had invested $1.35 million into Island Fiber, part of it a loan and part a grant, to get fiber internet to residential sections of Orange Beach.

“We gave them $1 million and that was going to be on a loan and they would pay us back once they got to the areas we wanted initially they would start paying us back,” Councilman Jerry Johnson said in February. “When Point Broadband merged Island Fiber in with them, they wrote us a check for $1 million. The only money we have into it is we gave them $350,000 as a grant to get them kicked off, in order for them to buy equipment and start installing fiber. That did not have to be paid back and so that’s what the city has invested in the whole project right now.”

There is no provision in this new agreement for a pay-back plan like the previous deal with Island Fiber, Johnson said.

“This will not be a grant,” Johnson said. “It is the only way to get fiber to Lauder Place, Gulf Bay Road, Cypress Village and Beaver Creek,” Johnson said.

With most of the city already built out east of State Route 161 and neighborhoods west of 161 and south of Canal Road serviced, the last area of the city is not as densely populated and the company needs help building it out.

“The residential density in the target area is less robust than in certain other parts

of the city, and therefore there is a higher cost per-home to bring fiber optics facilities to the target area than to other more high-density residential areas,” a draft of the resolution appropriating the money states. “In order to help offset the higher per-home cost of the project, Point Broadband has requested certain financial assistance from the city in the form of a grant.”

Costs for just the construction of the main line along Canal Road is estimated at $304,000 and then neighborhoods along the way would have to be hooked up.

Johnson, the chairman of the city’s Telecommunications Committee, said the aid to Island Fiber was an effort to kick start a “free market” of fiber providers to get as much of the city as possible access to fiber internet.

“When we got in the business – I never wanted the city to be in the business – I wanted the city to just put some money into it to where we would get the free market to come in and recognize Orange Beach as a place to be and start building it out,” Johnson said. “And, we’ve done that. We have CSpire, Island Fiber and we have Mediacom that all provide internet services. And, all of them are at a pretty fast speed. It’s a gigabyte or more. We’ve kind of pulled out of it and monitoring it but letting the free market build out Orange Beach. The goal all along.”

According to the draft, the city will still not be in the fiber business but will give back $1 million to help Point Broadband continue to expand in the city.

“It is agreed that the city has no investment or equity interest in the business of Point Broadband and shall not be liable for any debts of Point Broadband, nor shall the City be deemed or construed to be a partner, joint venturer or otherwise interested in the assets of Point Broadband, nor shall Point Broadband at any time or times use the name or credit of the city in purchasing or attempting to purchase any equipment or supplies or other thing whatsoever,” the draft states.

During the regular session, the council will:

• Have a second reading and OK’d an ordinance to allow for Turquoise Place to building a four-story parking garage east of the condo complex.
• Consider a resolution to give the Alabama Gulf Coast Zoo $48,800 to help sponsor the lion preservation program.
• Consider a resolution to pay $94,074 for new lockers at the Sportsplex.
• Consider a resolution to reduce pay for lobbying services with DuncanCounts from $48,000 to $24,000 annually.
• Consider a resolution authorizing a contract with Mediacom to provide television and internet services to the Ono Island Fire Station.
• Have a public hearing and introduction of the flood prevention ordinance to include elevation requirements for mechanical and electrical equipment.
• Have a public hearing and introduction of an ordinance annexing 1,400 feet of County Road 95 into the city limits. The Baldwin County Commission OK’d the move at its May 3 meeting.

During the work session, the council will discuss:

• Resolutions for contracts with Steve Devoursney for football coaching services and David Nix for sports program physical training services.
• Amending Chapter 2 of the code of ordinances and restating some other sections in the code.
• Setting a public hearing date for Phoenix West II request for a change to the master plan to add a public benefit amendment. The suggested date was July 19.
• Setting a public hearing for a change to the Parks Edge subdivision regarding an accessory building. The suggested date was July 19.
• Setting a public hearing for a proposed change in the signage plan for the new CoastAL project being built near the intersection of State Route 161 and State Route 182. The suggested date was July 19.
• Setting a public hearing for a change in the Parks Edge planned unit development regarding a setback encroachment. The suggested date was July 19.