FORT BRAGG, CA., 4/29/25 — Last week, construction crews started digging up the streets in Fort Bragg to install fiber for broadband, which will make high-speed internet available to every address in the city limits. This week, at the regular City Council meeting Monday, councilmembers closed the gap in funding the ambitious project, authorizing a $7 million 20-year loan from EverBank.
Economic development manager Sarah McCormick noted that the goal is to complete 100 feet of horizontal drilling per day, which immediately met a bad end when a water main was broken and some customers lost water. That glitch was rapidly repaired, people got their water back, and now the project, called the Middle-Mile Broadband Initiative, funded both by the loan and a $10 million grant from the state of California, will go forward.
Eric Scriven of consulting group NHA Advisors explained how the EverBank proposal was chosen. “This financing is to fund the gap between the project cost and the $10 million grant. That gap is $7 million. We were given direction to proceed with financing proposals received through a competitive process.”
The city received four proposals and chose EverBank because the terms met the city’s needs: a 20-year loan at 4.85%.
EverBank is requiring that the loan be guaranteed by the city’s general fund, but that lien is hopefully short-lived. The city assumes that the majority of its residents will sign on to the high-speed service, and that revenues will soon overtake the costs of the debt. Once three years pass with 25% revenue above the level of debt service, EverBank will release the lien on the general fund. The city also must fund a reserve equal to one year of payment. Scriven estimated a positive cash flow by 2028-29.
The City of Fort Bragg Joint Powers Public Financing Authority, the entity created to manage financing for the project, must also approve the loan, to occur at its meeting on May 12. Scriven said the loan would close shortly afterwards, likely on May 14.
In public comment, Jason Patterson wished that the city had done a better job of obtaining a larger grant so that the funding gap would be smaller. Councilmember Tess Albin-Smith said, “It’s sad that we can’t go back and get more grant money. But I’m confident that we will recover the money once it’s installed. Everyone is going to want it.”
McCormick said that city staff “pulled 80-hour weeks to make the deadline [for the grant]. And we’re the first [of fundees] to put drills in the ground.”
She also said that there is a possibility of further grants, and that the office of U.S. Rep. Jared Huffman, D-San Rafael, had reached out to suggest additional funding. Scriven noted that “the bank understands that the city may get some other money, and that up to 10% of the loan can be paid off without a prepayment penalty. We’d like to see this loan paid down if we can.”
Fort Bragg City Manager Isaac Whippy noted another advantage of the broadband install: the city will now have a complete map of water and sewer lines and hookups.
The council approved the EverBank loan in a unanimous vote.