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Minnesota cities may issue bonds to finance high-speed Internet/telephone/cable system

With Greene Espel’s assistance, the City of Monticello, Minnesota, has established that Minnesota cities may issue revenue bonds to finance a high-speed Internet/telephone/cable system. The system had been approved by the Monticello City Council after a public referendum passed with 74 percent support. On the eve of the City’s issuance of over $25 million in revenue bonds to finance the system, an established telephone company sued the City, alleging that such a system is not a “utility or other public convenience from which a revenue may be derived,” and was for that reason beyond the City’s statutory authority. Greene Espel attorneys John M. Baker and Kathryn Hibbard defended the City, and persuaded the district court to dismiss the suit. After the company appealed, the Minnesota Court of Appeals issued a published ruling that affirmed the dismissal. Two weeks later, the Minnesota Supreme Court denied the company’s petition to review the ruling.

Contact John Baker regarding the firm’s constitutional and governmental litigation practice.

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