United Fiber & Data in York lost at least $25 million between 2015 and 2018, reports show

United Fiber & Data, a telecommunications startup in York that’s associated with members of the rock band Live, reported to public utility regulators that it lost at least $25.93 million from 2015 to 2018.

The information comes from annual reports that the business filed with the New Jersey Board of Public Utilities. The filings provide the most detailed look yet into the finances of the company, which has projected that its network would lead to the creation of 400 jobs and $2 billion in state tax revenue in 30 years.

The firm has stated that it recently completed its 340-mile fiber optic line that connects New York City to Ashburn, Virginia.

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In a statement, Doug Schultz, chief financial officer for United Fiber & Data, said the business spent “significant funds” to complete the fiber network and lay the groundwork for future expansion. The company, he said, incurred additional expenses due to delays in construction.

Schultz said revenue continues to increase. The business anticipates that increased cash flows will cover operational expenses in the near future.

“We fully anticipated that this would be a really intensive construction project, which is really why nobody else has done this in the recent past,” said Andrew Paxton, president and general counsel of United Fiber & Data. “We believe that the current sales projections will result in profitability in 2020.”

The 2017 annual report is identical to the 2016 annual report. When the York Daily Record/Sunday News brought that to the attention of company executives, they said it was an error. The net figures were nearly the same, they said, and the report will be amended and refiled.

If the York Daily Record included numbers from the 2017 annual report in its analysis, the losses could be as high as $30.38 million.

Unlike Pennsylvania, New Jersey requires the company to report financial information about its nationwide operations.

CHECK OUT:United Fiber & Data sees abandoned old York County Prison as the perfect fortress for them

Michael Black, chairman of the Redevelopment Authority of the City of York, said United Fiber & Data has made its first two payments for the old York County Prison, which the company plans to rehab and make part of a data center.

The second payment, he said, was hundreds of thousands of dollars.

“They paid us in full and on time,” Black said.

In 2014, the redevelopment authority initiated eminent domain proceedings to take the old jail, which is near PeoplesBank Park in York.

The Board of Viewers determined that fair market value was $65,000, awarding $4,000 for attorney fees. But a York County jury took less than 30 minutes to find that the site was worth $1.25 million — a judgment later upheld on appeal.

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In August, the Pennsylvania Public Utility Commission moved 3-2 to tentatively cancel United Fiber & Data’s certificate to provide services in the state. The company reported that the decision won’t affect its business.

Then, three months later, the Pennsylvania State Police arrested Bill Hynes, founder and CEO of United Fiber & Data, on charges including burglary, criminal trespass and theft. He later resigned, citing personal reasons.

The company has stated that it will continue forward with its current executive team.

Contact Dylan Segelbaum at 717-771-2102.

Read the reports with the New Jersey Board of Public Utilities:

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