Danville Telecom buys out SIREPA broadband lease

LEE COUNTY – Danville Telecom has bought out a lease agreement with Southeast Iowa Regional and Economic Port Authority, which could lead to quicker expansion of broadband in Lee County.
The move gives the telecommunications company ownership of the new broadband infrastructure that was built with funds from Lee County’s America Rescue Plan Act authorization, state grant funding, and private funding.
Lee County granted SIREPA close to $2 million to be used as a trigger for funding from the state to build a redundant loop system between Argyle and Keokuk that is now a catalyst for future development. The loop also allows for Danville Telecom to reroute service in the event of service interruptions.
The infrastructure has extensive capacity and other telecommunication companies can lease space on it and not have to create their own infrastructure. This has already generated plans for an additional $30 million in broadband expansion in the county through companies like Mediacom and Mediapolis Telephone. Those two companies, specifically, have applied for additional federal funding to begin work in and around the county.
Danville Telecom was also able to run broadband to about 120 addresses in the Wever area as part of the project with SIREPA.
SIREPA will be paid a total of about $400,000 in the lease buyout. The original agreement had Danville Telecom paying lease payments to SIREPA as the owner of the infrastructure, for the next 10 years. One of those payments, about $30,000, had already been made.

The funding will be used for future broadband and economic development efforts in Lee County.
Lee County Supervisor Garry Seyb sits ex officio on the SIREPA board and said this project in total will be the catalyst for rapid expansion of internet service in the county. He said the buyout allows Danville Telecom to move freely with regard to leases with other companies. If the lease were allowed to progress SIREPA, as owners of the infrastructure, would have had to vote on all transactions taking place through Danville Telecom.
“We’re gonna start looking like some of the other counties now with lines laid everywhere and that’s a good thing,” he said.
Lee County Chairwoman Denise Fraise said she found that interesting because people were complaining that the county was only getting 120 addresses for their $2 million.
“Look what you’ve got started,” she said.
Seyb agreed that the county took some heat over that but he said the real story is not the 100 some people that got it.
“Everybody got in and we got this done, and now you’re seeing that rapid expansion.”