The proposed nDanville project to begin a pilot program bringing fiber optic lines to private homes in the Averett University area was shot down Tuesday night by Danville City Council during a work session dealing with loans for city projects.
All of the City Council members present — John Gilstrap was absent — questioned the timeliness of the nDanville project, and the $2.5 million loan that would be required to start the project.
“It’s a good project; I just don’t think now is the time,” Councilman Buddy Rawley said.
City Manager Joe King stressed that the project would pay back the loan itself, but Councilman David Luther questioned the reliability of the survey taken by Gamewood to back up the repayment plan it submitted for review.
Luther bluntly said he had “no faith” in the numbers, and said he is convinced “nDanville is not going to fly.”
“If they want to build it, let Gamewood built it,” Luther said.
City Council also cut out $1 million in General Fund projects — which include street, storm water and airport improvements — and members said they should be paid out of the General Fund, with any unexpected economic development incentive money to be paid out of the General Fund’s cash reserves.
Councilman Adam Tomer also questioned some figures that suggest the $6 million being borrowed to build the new downtown firehouse might have to be paid through a 2 ½-cent property tax increase next year.
Tomer said he would not support a tax increase, which was echoed by other City Council members — a tax increase City Council members said they were not informed that a tax increase for the fire station was required to fund the project.
“No way I’m going to vote to raise taxes,” Tomer said, and later suggested that city management might need to find another way to pay for the firehouse, “because we could vote down a tax increase.”
The smaller bond issue, reflecting cuts of the nDanville and General Fund projects will be voted on at the Sept. 7 meeting.
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