Statement regarding Mill Creek
September 12, 2016
Hargray offers the following statement regarding the Mill Creek lawsuit:
- For over 60 years, Hargray has delivered quality communications and entertainment products to connect the communities we serve. Simply stated, our customers are at the forefront of everything we do. We categorically reject any claim that our relationship with Mill Creek POA and DR Horton is inappropriate in any way. Further, it is our position that the claims against Hargray in the Mill Creek POA and DR Horton lawsuit in which we were included are without merit.
We would like to share some background, current state, and our thoughts about the future in Mill Creek.
When originally constructing Mill Creek, DR Horton selected a company called YRT2 to construct, own, and operate the telecommunications infrastructure. DR Horton and YRT2 entered into an agreement. In the midst of the economic recession in 2009, YRT2 became insolvent and phone, cable television, and Internet services to residents in Mill Creek were suddenly turned off. DR Horton contacted Hargray, and we responded immediately to restore services. Since then, we have invested over $1 million in the network serving Mill Creek residents.
In 2010, we entered into a new 10-year agreement with DR Horton which was fashioned after the YRT2 agreement. This agreement is different from most others Hargray has with other residential communities in that it required all Mill Creek residents to pay, as part of their POA dues, for phone, cable television, and Internet services and in return provided for a 10% discount off non-promotional retail rates.
From time to time, some Mill Creek residents have expressed a desire for more choice because they did not want all three services. As a result, we provided residents a two-service option without cable television; only those residents that purchase all three services would continue to receive the 10% discount.
Over the past several years, we have conducted multiple meetings with Mill Creek residents to explain this additional choice and the YRT2 history. In fact, today approximately 50% of Mill Creek’s residents have selected the two-service option.
In response to a request from the Mill Creek POA to again revisit the terms of the agreement to address the community’s changing needs, Hargray proposed alternative terms similar to its agreements with other preferred communities, subject to approval by the POA. We understand the plaintiff’s attorney actually filed a motion to prevent the vote on the new agreement from moving forward as scheduled.
During their annual meeting held on 8.30.16, we understand Mill Creek homeowners voted for the POA to adopt the new agreement which would allow homeowners to keep their current two or three-service options or select from any of Hargray’s service offerings. Additionally, based on the level of community commitment, Mill Creek POA may qualify to receive a revenue share under the new terms. As of today, we have not received the signed agreement back from the POA.
Hargray’s advanced fiber-to-the-home technology in Mill Creek provides the infrastructure needed to provide enhanced services, including gigabit speeds as part of the Lowcountry Broadband Plan. Hargray is currently engaged in Internet speed trials in several communities, including Mill Creek. Residents interested in a complementary evaluation of their homes’ Internet needs based on connected devices and usage, to learn more about available Internet speeds, or participation in the gigabit service trial should contact 866.531.9270.
Statement re: Mill Creek Lawsuit
March 17, 2016