Investment firm J.P. Morgan to underwrite Loveland’s broadband utility

Multinational investment company J.P. Morgan will underwrite the city of Loveland’s municipal broadband network, if the City Council votes in October to move forward with its creation.

Broadband project manager Brieana Reed-Harmel said that while the city received 15 well-qualified proposals from companies such as Bank of America, Merrill Lynch and the Royal Bank of Canada, J.P. Morgan stood out because of the company’s experience with both power and telecommunications utilities.

Having experience is a big plus in the world of broadband, which is still a relatively new area, ReedHarmel said.

“They have the experience to deal with a complicated project like this . ... It’s kind of a big step, and we’ve been working on it for a while,” Reed-Harmel said.

Per the agreement with the city signed Thursday, J.P. Morgan will begin working with the city this week to advise staff members on bonding packages as they get them ready for sale. Total build cost for the network has been estimated between $60 million and $100 million.

The company will use its network of investors and marketing capabilities to put the city’s broadband bonds in front of the right prospective buyers and to secure the city as competitive a bond rating as possible, said Alan Krcmarik, the city’s fiscal adviser.

The process carries some risk for J.P. Morgan — if the City Council decides to stop the project and the city does not go through with a bond transaction, they will not receive payment for their preparation work, Krcmarik said.

The city is also working with the Finnish telecommunications and consumer electronics company Nokia and fiber optic construction company Bear Communications to complete the network design.

Reed-Harmel said the project team is hoping for a detailed plan for bonds, business, design and costs by the scheduled presentation to the City Council on Oct. 23.