OLDS — The Olds Institute for Community and Regional Development (OICRD) and its various arms like O-NET, Olds Fibre Ltd. and Mountain View Power, are being consolidated into one entity that will become a town-owned corporation in about a month, according to a news release issued by the municipality.
Town officials have asked BDO Canada to serve as a receiver for the Olds Institute for OICRD in order to make that consolidation happen.
Plans call for town council to choose the board of directors for the new corporation. A public hearing will be held on July 26.
Among other entities, OICRD oversees Olds Fibre Ltd. (OFL), which is a for-profit business that owns O-NET, a community-owned firm that provides high-speed internet as well as phone and TV service.
A town news release said the receivership does not include Olds Fibre Ltd.,“so as to ensure the continued operation of O-NET with minimal disruption or impact.”
The statement said the decision "will not change the services or customer expectations of O-NET, and all staff will be retained to run O-NET.”
It also said the receivership decision was made after OICRD and OFL, via an advisory committee, “were unable to produce interest or offers that would be capable of satisfying the town’s need for substantial reduction or elimination of the town’s financial supports for OICRD/OFL.”
Several years ago, the town arranged to obtain loans totalling $14 million to help finance the installation of fibre optic lines to homes and businesses throughout Olds to connect customers to O-NET.
On May 22 last year, town council called on OI to repay a $14-million loan as part of a larger call for that entity’s loan refinancing to be “reorganized” and "additional process thereafter."
Earlier, the town announced it had extended three times a forbearance agreement, which gave OICRD and OFL time to find what a town news release called “alternative and replacement sources of financial support.”
That last extension expired June 25. Council held a special meeting of its broadband investment committee behind closed doors on that day, then issued the news release later that afternoon.
“Through the work of the receiver, the town of Olds will pursue a consolidation of the entities, assets and business operations, which include the O-NET service owned and operated by OFL (O-NET), the Olds Connected Community Network (OCCN) owned by OI, and Mountain View Power (MVP) owned and operated by OI, into a town-controlled corporation during this time period,” the news release said.
“The town believes that this is the best means to ensure the preservation of the assets and services, and set O-NET, OCCN and MVP up for the best success moving forward.”
“Every effort was made by the town for OICRD and OFL to find a solution/investor to see O-NET grow and thrive. We believe that BDO Canada has the knowledge and expertise to take O-NET to the next level as the receiver as we move forward," said Mayor Michael Muzychka in a prepared statement included on the press release.
After receiving the news release, The Albertan contacted town staff asking whether the town might turn O-NET into a public utility and where the July 26 public meeting will be held.
As of Sunday, June 27, no reply had been received.
