Kiss Defends Burlington Telecom's Broken Lease
11/29/10 12:00PM By Jane Lindholm
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Burlington Telecom has failed in its months-long attempt to renegotiate a lease that provides the equipment that is the cornerstone of the utility's infrastructure. But Mayor Bob Kiss says the city is exploring a purchase of the equipment outright and says the terms of that purchase could be more favorable than the previous lease.
The end of the lease with CitiCapital is the most recent in a series of serious financial problems for the city-owned telecommunications utility. Burlington Telecom borrowed $33.5 million from CitiCapital in 2007, and now Burlington Mayor Bob Kiss says the utility can't afford the $311,000 monthly payments. Now the city is weighing its options, and the possibility of CitiCapital repossessing key equipment.