POWELL - A vote last week by a joint powers board opens the door for Cody to seek private funding for an ultra-high-speed fiber optic telecommunications network.

Investors looking to back a similar project in Powell have expressed interest in funding a network in Cody as well.

"I think it could be a huge positive for both communities," said Powell City Administrator Zane Logan, a principal backer of the Powell project.

The contract, approved unanimously by the Northwest Improvement Projects Joint Powers Board, does not obligate any Cody municipal funds, nor does it ensure that a city-owned network will be built.

Instead, it outlines the terms under which the board would own and operate the network on behalf of Cody, similar to a deal approved last year for a Powell network.

Under agreements for both cities, TCT, a Basin telecommunications company, would act as the anchor service provider, with the network eventually being open to other companies.

Private investors would fund both networks, said Ernie Bray, founder and chief technology officer of U.S. MetroNets, a Utah company working to secure financing and provide network construction expertise for both projects.

A deal is in the final stages to finance a $5.5 million network in Powell, and the same investors have expressed interest in funding a $14 million network in Cody, Bray said.

Under the contract approved Thursday, the board may reject any offer if it is unhappy with the financing, and Cody is required to put up no money at any stage in the project's development or operation.

Bray said the Cody City Council would not have to sign off on any financing deal, but the board would still require the same city approvals to build the network as any other telecommunications provider.

The six-member body includes Cody City Council members Sam Krone, Paul Rankin and Jona Vanata, along with Powell City Council member Dan Groskop, Powell Mayor Scott Mangold and Logan.

A joint powers board offers greater flexibility under state law in financing the projects than is available through a city, Bray said, adding that airports, irrigation districts and other infrastructure projects are often operated similarly.

Logan said financing for Powell's network is not, and never has been, contingent on authorization for a similar network in Cody, but that the two towns together offer a more attractive package to investors.

Bray said private investors are interested because they believe the network, which will offer TV, phone and Internet services over a single connection, will be attractive to consumers seeking a package deal and ultra-high-speed data transfers.

Logan said he is hopeful the Powell deal can be closed by the end of July, meaning construction of the network might be completed before the end of the year.

The timing of Thursday's agreement between the board and TCT means any network in Cody would not be subject to state legislation that becomes effective July 1.

That law, passed in February with the support of telecom giants Qwest and Bresnan Communications, requires public hearings and a 90-day notice to existing providers, allowing them to match any proposed rates and level of service before a municipally owned network can be built.

Logan said a public notice was published seeking applicants to become the Cody network's anchor service provider, with only TCT responding.

Bray said the timing of the agreement was not necessarily aimed at avoiding the July 1 law, but was geared toward allowing investors to consider financing both projects under nearly identical terms.

Any deal signed after July 1 would potentially complicate that, he said.

Logan was optimistic the projects would compliment each other.

"Economic development experts say they like to get clusters of businesses that are related to each other, and this offers the potential for two locations in the county that could have this advanced data infrastructure," he said.

"I think it's going to benefit the whole Big Horn Basin, there's no doubt about it," agreed Rankin. "Powell spent the money up front to pursue this, so we might as well take advantage of it" in Cody.