City Council Meeting Date: September 22nd, 2026
To: Mayor and Members of Council
From: Ben Martig, City Administrator
Title
Consider Directing Staff to Implement Broadband Franchising Authority for Public Right of Ways.
Body
Action Requested:
City Council approves a motion to direct staff to implement the City of Northfield’s broadband franchising process, including, but not limited to, finalizing the application and notice materials; publishing and providing required notice; receiving and evaluating applications; reviewing related right-of-way requirements; negotiating proposed nonexclusive broadband franchise terms; scheduling the required public hearing; responding in consultation with legal counsel to procedural or legal issues that arise; and returning any proposed franchise ordinance and agreement to the City Council for final approval, all subject to City Attorney review and applicable federal, state, and local law.
Summary Report:
This direction authorizes the administrative and legal work needed to solicit and evaluate applications and negotiate proposed nonexclusive broadband franchises. Any final franchise ordinance or agreement will return to the City Council for public hearing and approval.
The City Council previously reviewed broadband franchising at its July 14, 2026 work session and supported moving forward. Since then, staff and special communications counsel have developed draft application instructions, a notice of intent to franchise, provider notification materials, and an internal process outline. The implementation step is to authorize staff to finalize and use those materials and begin the formal process.
A broadband franchise is the City’s authorization for a qualified provider to construct or operate a broadband communications system using public streets and rights-of-way. It is broader than an individual right-of-way permit: the franchise establishes the long-term terms for access, construction coordination, system buildout, service obligations, customer protections, reporting, enforcement, and compensation for use of public property. Individual construction activity would remain subject to applicable City right-of-way permits and standards.
Legal and implementation considerations
The City’s special communications counsel has identified authority under Minnesota law and the City Charter to pursue franchising. However, the legal environment remains active, and a broadband provider could challenge the City’s authority, the franchise fee, a process requirement, or a proposed franchise condition. Providers have challenged or threatened to challenge similar municipal actions elsewhere in Minnesota. A legal challenge is therefore a recognized implementation risk, although it is not certain that Northfield will receive one.
If the City receives an objection, demand, administrative filing, or lawsuit, staff will promptly consult with legal counsel and the City’s insurer, evaluate the specific claims and available options, and respond based on the facts and law at that time. That response may include defending the City’s position, modifying a procedural step or proposed term, adjusting the schedule, seeking additional Council direction, or pursuing legislative or other remedies. Staff will inform the Council when a challenge has a material legal, financial, or policy effect.
Northfield’s process is intended to be prompt, transparent, competitively neutral, supported by a clear record, and coordinated with the City’s established right-of-way permitting process. Staff and counsel will monitor these developments and revise the process or proposed franchise language when warranted before final Council action.
State Legislative Advocacy
While Minnesota cities have existing legal authority to franchise broadband, many broadband companies have refused to entertain franchises and have brought or threatened legal action. Broadband providers want free access to the public right-of-way and provide none of the benefits listed above. That is bad public policy. Legislation clarifying municipal authority to franchise broadband companies will eliminate any dispute over municipal franchising authority. This is the future of municipal franchising. It is critical to successfully address broadband franchising in the next legislative session. The City Council has approved related legislative positions related to modernization of franchising previously and will do so again in 2026 in preparation for the upcoming Legislative Session in 2027.
City Plans & Policies Relevance:
• Comprehensive Plan 2045 - The proposed broadband franchising process supports the Northfield 2045 Comprehensive Plan by promoting reliable and equitable access to essential communications infrastructure, supporting economic vitality, and coordinating responsible use of public rights-of-way. The process advances these goals through consistent requirements for system buildout, infrastructure protection, construction coordination, and service access throughout the community.
• The proposed broadband franchising process supports the City of Northfield’s 2025-2028 Strategic Plan, particularly the priority to improve the City’s financial strength. Establishing consistent requirements for the use of public rights-of-way provides a potential new revenue source, supports responsible infrastructure management, and promotes reliable broadband service that contributes to economic development and community vitality.
Alternative Options:
None recommended per prior council direction.
Financial Impacts:
This is a revenue replacement initiative complementing the cable access franchise agreements currently active and in place.
Applicants will be responsible for the City’s reasonable and necessary application and processing costs under the final application requirements. Franchise revenue will depend on the number and type of providers, customer participation, covered services, and negotiated definitions.
Earlier illustrative analysis estimated approximately $140,000 annually from one fiber-to-the-premises provider using assumptions of households, market participation, and monthly covered service revenue, and a 5 percent fee. This is a planning illustration, not a guarantee.
Tentative Timelines:
• Immediately following Council action: Finalize the notice, application materials, provider notification list, and administrative schedule with legal counsel.