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Minnetrista staff recommend pursuing Midco franchise; council OKs tower lease talks without $10,000 stipend
Summary
City staff said Midco (Midcontinent Communications) has proposed a nonexclusive franchise to build internet to every Minnetrista address over about two years; staff will work with the city's cable attorney to draft an agreement. Council indicated support and asked staff to return a business-item draft. Separately, staff recommended a Lakeside Networks tower lease without the prior $10,000 inspection stipend to preserve the city's cable fund.
Minnetrista staff told the City Council at a June 3 work session that Midco (Midcontinent Communications) has asked to enter a franchise agreement to provide internet, video and phone service citywide, and staff recommended moving forward with drafting terms.
"Midco approached the city requesting to enter into a franchise agreement to provide video and Internet service to the entire city," said Ally Palfos, director of administration. Palfos said Midco plans to begin construction with internet services and would follow with franchise paperwork for cable services, and that the company’s plan includes at least one currently unserved address.
Palfos told the council Midco cited a strong local uptake on a prior project—about a 70% take rate—and said the company was not concerned about competition from the city’s existing provider, Mediacom. The city’s current Mediacom franchise is nonexclusive and was renewed in 2023 for seven years; Palfos said any new franchise with Midco would need to reflect the city’s nonexclusive terms and that the city’s cable attorney, Bob Bowes, would review draft language.
Why it matters: A second infrastructure provider could expand broadband options for residents who lack service or face limited competition. Staff framed the step as a procedural direction to pursue negotiations rather than a final commitment; legal review and formal council action will be required before any franchise is adopted.
On a related infrastructure question, Palfos described a Lakeside Networks request to place equipment on the Highway 7 water tower under terms similar to the company’s Sunnyfield Road lease. That earlier arrangement included a $10,000 city-paid site-inspection stipend intended to incentivize provider placement. With multiple providers now building in parts of the city (Midco and MetroNet were discussed), Palfos recommended approving the Lakeside lease without the $10,000 stipend because the city’s cable fund is dwindling.
"If they're willing to go on the tower without that $10,000, I don't see why not," Palfos said. Council members expressed agreement with pursuing the lease while declining to pay the prior inspection stipend.
What happens next: Staff will work with the city’s cable attorney to produce a franchise agreement draft for Midco to bring back as a business-item agenda item. Staff will also proceed on a Lakeside Networks tower-lease approach consistent with the council’s direction to avoid the $10,000 stipend unless circumstances change.
Actions recorded: Staff recommended pursuing a Midco franchise agreement and returning a draft to the council; staff recommended a Lakeside Networks lease without the $10,000 stipend and will bring an agreement forward for approval. No formal franchise ordinance or contract award occurred during the work session; legal review and formal council action are the next steps.
