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Cornelius News

It looks like a $384K windfall for Cornelius, thanks to Davidson, Mooresville cable deal

TDS spent $80 million to acquire Continuum, but only about $11.4 million was available from the proceeds to reimburse Davidson and Mooresville.

Nov. 16. By Dave Vieser. By the end of the month, the Town of Cornelius bank account may be richer by some $384,000 as a result of a legal settlement agreement with Davidson and Mooresville.

The payment stems from the ill-fated municipal purchase of the former Mi-Connection cable system by the two towns north of Cornelius.

The agreement was approved by all three towns Monday evening, and needs only one more approval—expected at the County Board of Commissioners meeting tonight.

JIM DUKE

66-33 split

“The split will likely be two thirds-one third,” said Cornelius commissioner Jim Duke. “This is based upon the original contract that would have provided Cornelius with $ 1 million and Mecklenburg with $500K,” Duke said. “During conversations I heard no other distribution split contemplated.”

Davidson and Mooresville bought the former Adelphia Cable system through a municipal consortium.

Complex deal

Cornelius chose not to participate in the deal, although the company continued to serve customers in the town. The system proceeded to lose more money, and plenty of it. Nearly $50 million in subsidies were paid by taxpayers in Mooresville and Davidson for over a decade.

The MI Connection system—renamed Continuum—went back to the private sector when it was purchased by TDS Telecom on Dec. 31 of 2019.

With the sale, Cornelius asked for $1 million, claiming it was contractually owed. Davidson and Mooresville objected and filed a lawsuit in Iredell County Superior Court in February of 2020. After more than a year of negotiations the parties reached an out-of-court settlement in the past month.

Discussion

3 Responses to “It looks like a $384K windfall for Cornelius, thanks to Davidson, Mooresville cable deal”

  1. It’s too bad many Cornelius, Davidson, and Huntersville residents are being force to “cut the cord” with the now TDS due to their outrageous rate hikes. Not good for our community and those with limited income.

    Posted by Deborah Coppa | November 16, 2021, 6:26 pm
  2. Cornelius residents for the past 2 months have seen contractors working for SPECTRUM digging up their front yards in what we’ve been told is an “upgrade” to the past fiber optic cable. So it looks like Cornelius residents will soon be offered a new provider in this area…SPECTRUM. What’s very funny in a not so funny way is how all this played out in our yards, with no one from Cornelius city government saying one peep about this happening. Nope….never read a single thing about it from any City Council meeting….why is that???

    Posted by Jeffrey W Shaw | November 16, 2021, 7:02 pm
  3. For six days,so far, Spectrum has brought havoc to one block of yards and plantings on Magnolia St in Davidson. With ATT and TDS in so many homes, seriously, how many new hookups will Spectrum gain after all that shoveling?

    Posted by Barbara H Bryan | November 16, 2021, 9:27 pm

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