Calabasas : City Will Accept $100,000 From PacBell

Calabasas has agreed to accept $100,000 from Pacific Bell to offset the economic impact of the company’s decision to scrap plans to rewire Calabasas for fiber-optics.

PacBell had wanted to rewire 1.5 million homes statewide, but recently scaled back plans in the Los Angeles area, citing costs, competition and the lack of cooperation from the city of Los Angeles, the main component for the success of this regional effort. The company indicated it would move forward with plans to rewire San Diego and San Jose.

When PacBell made its announcement, it had already spent about $100 million and dug up portions of Los Angeles and Calabasas, where 700 homes have been rewired.

Consumers on the fiber-optic network would have been able to receive to-order movies, interactive games and educational programs. And, some say, Calabasas’ acquisition of a fiber-optics network would have lured new businesses and improved communications for existing ones.

Calabasas Mayor Dennis Washburn said that although it will be hard to make up for that loss, the $100,000 “goes a long way to continue the momentum that we had going to improve our communications systems.”

PacBell has also agreed to restore street surfaces and a staging area at Mulholland Highway and Old Topanga Canyon Road to their original condition, Washburn said.