The board voted unanimously to support $400,000 to go with a city of Rice Lake match to make the $835,835 deal a reality.
Consolidated Telephone Co., headquartered in Brainerd, has committed $35,835 toward the project, and is contracted to install the fiber-optic network.
"We're looking at 267 connections with this project," Rice Lake City Councilor Suzanne Herstad told the board May 3 in Duluth. "Hopefully, this will still be a good building block to start doing a piece here and there, setting up loops wherever we can."
Herstad noted the failure of a larger federal application, and still wanting to partner on continued efforts at improved rural broadband connectivity with Gnesen Township to the north, and Lakewood, Grand Lake and Normanna townships in surrounding directions.
"This is a much-scaled-down project," Herstad said, explaining how Rice Lake City Hall, 4107 W. Beyer Road, had been using satellite Internet, but is required to hold a static Internet protocol address in order to conduct election business.
"We're looking forward to a better way to service City Hall, while scooping up some homeowners and business owners along the way," Herstad said.
The county approved the use of funds from its St. Louis County Broadband Infrastructure Grant program, which is funded by its $54 million in American Rescue Plan Act monies. The $1.75 million broadband grant fund will be left with $950,000 following the Rice Lake expenditure.
The County Board will conduct final approval on the project during its meeting at 9:30 a.m. Tuesday at Gnesen Community Center, 6356 Howard Gnesen Road, Duluth.
The larger federal grant sought by a collaborative including the city of Rice Lake and Canosia, Gnesen, Lakewood and Normanna townships would have connected 2,115 homes, businesses and community facilities. Because it didn't receive funding, the effort has been forced to scale back into smaller projects.
"They're putting in something where others can conceivably connect and go beyond," said Duluth-based Commissioner Frank Jewell of the Rice Lake project. "That's going to be part of what's going to happen — they're going to do chunks at a time. It's not a cheap way to do it, but it is one way I suspect rural areas are going to be doing it."
Commissioner Keith Musolf, who represents Rice Lake and the cities and areas outside Duluth, thanked Herstad and the city for "tackling this monster we call broadband."
"(Making) sure Rice Lake has capability at City Hall for future elections is a huge deal to help them," Musolf said.
Commissioner Patrick Boyle, representing eastern Duluth, marveled at the cost, roughly equivalent to $3,800 per household to connect.
"It boggles my mind," he said, but was assured that it was reflective of the costs to extend fiber-optic cable.
Commissioner Keith Nelson told commissioners not to sleep on satellite Internet as it makes its way deeper into rural communities. He cited hookup costs in the hundreds of dollars, not thousands, and said the county would need to consider satellite Internet in future cost analysis of county needs.
"We knew this day was coming," Nelson said of satellite Internet. "For a lot of areas in St. Louis County, it is just not practical or feasible to run cable or fiber to a lot of these places."
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