RENO, Nev. (KOLO) – In December 2023, KOLO 8 reported that Lovelock was receiving high-speed internet. But that project has been delayed because the fiber optic company leading the charge refuses to pay its construction workers. Instead, a private for-profit company has withheld $9 million of taxpayer money while refusing to pay for services provided.
Reno company Uprise Fiber LLC, along with USDA and NDOT, were ready to make Pershing County’s fiber optic dreams a reality. However, Uprise LLC does not have a trenching contractor’s license. That’s where CommNV comes into play. But to get the full picture we’ll have to rewind a little. Three years ago, CommNV was created at the request of Uprise LLC. The two companies became close. So close that there really was no separation between them. They used the same accounting, payroll and purchasing team. CommNV says they even shared employees. For years, CommNV worked alongside Uprise without problems. That is, until the Lovelock Internet project.
To launch this project, the USDA awarded a $27 million grant. Part of this grant required a 25% match. That match was obtained by entering into a construction contract with NDOT for $11 million. NDOT advanced Uprise LLC $9.1 million in May 2023.
Before construction began, CommNV said they would need an advance payment so they could pay for supplies and ensure their workers were compensated. Uprise gave them verbal confirmation that they would be paid, but presented CommNV with a contract that stated they would be paid once the services were completed. CommNV again made it clear that they would have to be paid up front and Uprise insisted that the contract was a formality. Since they had never had problems before, CommNV signed the contract. Something they would say later, where they felt manipulated because of how much they trusted Uprise.
In September 2023, CommNV began construction on this project. After a month, CommNV still did not receive payment. It got to the point where they took out loans just to keep the project going. CommNV continued this until they found themselves one million dollars in debt. Even though Uprise received the $9 million that was to be used to pay CommNV.
They tried to get answers, but Uprise suddenly told them that they could only be paid if the project was completed according to the contract they signed. Without funds, CommNV’s hands were tied. They just couldn’t finish. To make matters worse, CommNV was so involved in the Lovelock project that they did not except or apply for any other work, leaving them with no incoming income. They were forced to close their business and lay off employees who they said were like family. CommNV owners say they feel betrayed and all they can think is that greed is a factor in Uprise being able to keep more of the $9 million in grant funds.
Now, remember how I said they shared employees? During the negotiation process, the operations officer of both companies intercepted an email that she was not supposed to see to the owner of Uprise from the facilities director. In it, the two men discuss CommNV’s request to modify the contract so they can receive payment up front. He says: “Verbal rumors do not go against a signed contract.”
I contacted Uprise LLC several times for comment, but they never responded.
As for NDOT and the USDA, when asked why they are allowing Uprise to retain $9 million in taxpayer funds, they said they could not comment as this issue is in litigation.
So far, Pershing County still has no new contractors, leaving the people of Lovelock without the high-speed internet they were promised.
This will be an ongoing story as this matter plays out in the courts. KOLO 8 will have direct statements from CommNV when their lawyer says it is safe to do so.
Copyright 2024 KOLO. All rights reserved.
#Lovelocks #highspeed #Internet #project #delayed #fiber #optic #company #leading #project #refuses #pay #construction #workers