The city of Dunnellon made final the unloading of its failed fiber optic scheme when the mayor signed off Monday on handing the business over to Florida Cable Inc.
The Astor-based company bought Dunnellon’s cable endeavor for $1 million and also will take over the city’s $1 million equipment lease obligations. When current Dunnellon Mayor Nathan Whitt took office in 2012, the fiber optic venture called Greenlight Communications was costing the city about $300,000 a month in losses and left the city with about $7 million in debt.
Although Whitt quickly moved city staffers out of Greenlight Communications and into other departments, the business was still losing as much as $60,000 a month by the time the city sold the floundering business. But the sale does not put an end to the Greenlight saga.
Regions Bank last month sued Dunnellon for defaulting on a nearly $7.4 million loan, which it used to fund Greenlight. The lawsuit came soon after talks between the city and Regions to rework the loan broke down.
Classic. The town’s annual budget was only $2.5m. Total. So a loan three times that makes perfect sense.