[B]URLINGTON — A group of residents seeking to keep Burlington Telecom community-owned says it has raised more than a quarter of a million dollars in just four days.
The city is required to sell the municipally owned telecommunications company as part of a 2014 settlement with Citibank, the company’s main creditor. Burlington is expected to keep a greater portion of the proceeds if the sale can be completed by January. The city can also retain partial ownership.
Keep BT Local, a group aiming to run Burlington Telecom as a cooperative, has publicly identified itself as one of the bidders. A number of local politicians and business leaders, including Ben & Jerry’s co-founder Jerry Greenfield and State Auditor Doug Hoffer, have publicly backed the co-op’s efforts. The organization launched an online fundraising campaign Monday and has taken in 15 pledges and $267,000.
The group hopes to raise $500,000 to $1 million, according to its fundraising page.
Alan Matson, chair of the co-op’s board, said in an interview Thursday that the effort is off to a strong start.
“We feel good about where we are, but we still have some fundraising to go,” Matson said.
The co-op is using the Milk Money fundraising website for small businesses. The independent platform operates with support from the Vermont State Employees Credit Union.
Investors’ money is held in an account at the credit union until the fundraiser’s minimum offering amount is reached. The fundraiser can then spend the investments. Those who pledge will receive documentation on their stake in the company via mail, and periodic performance updates.
Matson said the co-op chose Milk Money after noticing the platform gain traction and seeing how it could bridge some of the legal challenges in collecting investments. Money will also be collected outside of the online platform, he said.
Keep BT Local says the $500,000 to $1 million it hopes to raise would cover the financing package needed to close the acquisition. The pledge amount needs to be reached by the end of the month, according to Matson.
The co-op has a set of core values that include upholding free speech via the internet, supporting local media and providing programs that engage the entire community.
The city has decided not to publicly name the other bidders yet. Mayor Miro Weinberger said at Monday night’s City Council meeting that he expects a summary of information about the four finalists will be released next week.
Weinberger told VTDigger earlier this month that his preference is to identify the finalists and release the bids once a winner has been determined.
Weinberger said releasing the final bids early could weaken the city’s bargaining position. Bidders need to prove to the city that they meet the criteria of the sale determined with public input, such as maintaining a local presence.
Four potential owners gave presentations to the City Council on Monday night in executive session. Contract negotiations are allowed as a reason to enter a closed-door meeting under Vermont state law.
Katie Vane, a spokesperson for the mayor, confirmed that a summary of information about the finalists will be released Monday. Vane did not provide details on what the summary might entail.
(Correction: An earlier version of this story should have said Milk Money is an independent entity.)
