No dice in fiber optic bid

Talk about it

A Winona-based communications company learned Monday it didn't receive stimulus dollars it hoped would help pay for a high-speed fiber optic network spanning both Lake City and Red Wing and the surrounding townships.

Hiawatha Broadband Communications found out via letter its $20 million project wasn't awarded any of the $7.2 billion stimulus funds set aside for broadband.

Local governments had endorsed HBC's project.

Red Wing city officials themselves had been looking at building a comprehensive fiber optic network before HBC made its proposal.

Proponents of fiber optic say the high-speed Internet it provides would entice companies to move to Red Wing and would benefit the local hospital, schools and government facilities.

"We're sad," Red Wing's Information Technology Director Laura Blair said. "And we're anxious to meet with HBC."

HBC President Gary Evans said the news hit his company very hard. He said the letter gave no indication why the federal agency handing out the stimulus money - the National Telecommunications and Information Administration - didn't selected HBC's project.

"We thought we had a phenomenal application," he said. "I felt like for the first time in my life my heart was truly broken."

The door has been not completely shut, however. A second round of projects will receive stimulus money.

Evans said HBC will apply again. The first round of projects is not expected to tap all of the $7.2 billion.

If the company is again unsuccessful in garnering stimulus money, Evans said HBC is still interested in the project, although financing would be a big obstacle.

"We're committed to getting that project done," he said. "But I can't tell you were the funding would come from."

Evans said the company's board meets Friday and will discuss the project's future.

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