RENO, Nev. (KOLO) – Back in December 2023, KOLO 8 reported that Lovelock was receiving high-speed internet. However, the project has been delayed after the leading fiber optic company refused to pay construction workers. Instead, a for-profit private company has been holding on to $9 million in taxpayer funds while refusing to pay for services provided.
Reno company Uprise Fiber LLC is working with the USDA and NDOT to make Pershing County’s fiber optic dream a reality. However, Uprise LLC did not have a trenching permit for the contractor. This is where CommNV comes in. But to get the full picture, we have to look back. CommNV was created three years ago at the request of Uprise LLC. The two companies have a close relationship. They were so close that there was no distance between them at all. They use the same accounting team, payroll and procurement. CommNV says they even share staff. CommNV has worked with Uprise for many years without any problems. That is, until the Lovelock Internet Project.
To get the project started, the U.S. Department of Agriculture provided a $27 million grant. Part of this grant requires a 25% match. The match was obtained through an $11 million construction contract with NDOT. NDOT advanced $9.1 million to Uprise LLC in May 2023.
CommNV said they need an upfront payment to pay for supplies and ensure workers are compensated before construction can begin. Uprise verbally confirmed that they would be paid, but provided CommNV with a contract stating that they would be paid once the services were completed. CommNV again made it clear they wanted payment upfront, while Uprise insisted the contract was a mere formality. CommNV signed the contract because they had never had a problem before. They later said they felt manipulated because of their trust in Uprise.
In September 2023, CommNV began construction of the project. A month later, CommNV still has not received payment. To keep the project going, they had to apply for a loan. CommNV continued to do this until they found themselves $1 million in debt. Although Uprise received the $9 million that was supposed to be used to pay CommNV.
They try to get answers, but suddenly Uprise tells them that they will only be paid after the project is completed according to the contract they signed. CommNV ran out of money and was at its wits end. They simply can’t finish it. To make matters worse, CommNV was so invested in the Lovelock project that they failed to rule out or apply for any other work, leaving them without any revenue. They were forced to close their businesses and lay off employees they said were like family. CommNV’s owners said they felt betrayed and all they could think was that greed was a factor so Uprise could keep more of the $9 million in funding.
Now, remember I said they shared employees? During negotiations, an operations official from both companies intercepted an email that she was not supposed to see from the owner of Uprise, who was its facilities director. Among them, the two are discussing CommNV’s request to amend the contract so they can receive an advance payment. “Oral hearsay does not object to a signed contract,” it states.
I contacted Uprise LLC multiple times for comment, but they never responded.
As for NDOT and USDA, when asked why Uprise was allowed to hold $9 million in taxpayer funds, they said they could not comment because the issue is under litigation.
As of now, Pershing County still has no new contractors lined up, leaving people in Lovelock without the high-speed internet they were promised.
This will be an ongoing story as the issue unfolds in court. KOLO 8’s lawyers will receive a direct statement from CommNV when they say it is safe to do so.
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