PROVO — Broadweave Network executives faced another volley of tough questions this morning on their offer to buy the city's fiber-optic network — this time at the hands of the Provo City Council-appointed iProvo Review Committee.

The special committee, a veritable who's who among local businessmen and politicians, met this morning to review Broadweave's proposal to assume control of iProvo for $40.6 million, essentially relieving the city of its financial obligations.

According to the agreement, the city will receive the sum of the $40.6 million payment by taking out a loan, said Provo Finance Director John Borget. Broadweave will then make monthly payments of $277,000 for the next 19 years to pay off Provo's bonds, plus interests, for a total of about $63.2 million.

The money will also go to pay off $2.9 million the city will need to front to close the sale, as well as transfers made from the city's energy department to subsidize iProvo throughout the years.

Most committee members said they had good feelings about Broadweave and what it would bring to a network that has experienced slow growth rates and mounting costs. Recent reports provided by City Councilman George Stewart show iProvo continues to lose subscribers.

In April, 229 subscribers left the network, bringing the number of subscriptions to about 10,250. Stewart also provided a report showing that the city transferred $12.3 million between 2001 to 2005 from the city energy fund to keep iProvo afloat. The city also approved a $1.2 million transfer to iProvo from general fund sales tax receipts, bringing total iProvo investments to about $13.5 million.

The city has limited options in a situation like that, said Rep. Steve Clark, R—Provo.

"Under that scenario, we need to sell it," he said.

But for all the good committee members see in Broadweave's proposed acquisition of the network, that didn't keep them from casting a scrutinizing eye over the terms of the sales agreement.

Clark said it appears Broadweave isn't assuming enough risk.

"There's no skin in the game from these folks," he said. "They're walking in with no dime down and taking over a $40 million asset."

Borget said Broadweave offered the city a letter from Sorenson Capital, a Salt Lake-based private equity firm, that guarantees the city $6 million. Should Broadweave miss a monthly payment, that amount could be withdrawn from that amount, Borget said.

Sorenson Capital previously announced it would invest in Broadband to make the purchase possible.

Stan Lockhart, director of government affairs for IM Flash and a state GOP leader, said he's impressed with Broadweave, but he wanted to know what would happen "if things went south" and Broadweave had to abandon its plans.