SANFORD — Changes in the type of fiber, cost increases for other equipment and a hike in the amount Sanford has to pay to access its municipal space on utility poles means the SanfordNet broadband project will cost about $400,000 more than projected three years ago.

The long awaited broadband project is set to begin some time before July 30. The bid for the construction work, for $1.38 million, was awarded Tuesday to Eustis Cable Enterprises Ltd. of Brookfield, Vermont, one of two bidders for the project. The bid from the second contractor, White Mountain Cable, headquartered in West Chester, Pennsylvania, came in at $2.1 million.

Altogether, the SanfordNet project cost is $2.02 million, with $844,396 coming from the sale of the Emerson School lot and a $769,209 grant from the federal Economic Development Administration.

On Tuesday, the City Council voted to bridge the $400,000 gap using money from the Downtown Sinking Fund TIF. City Manager Steve Buck explained that the TIF, funded by the Lowe’s and Walmart project and some downtown businesses, has a healthy annual return.

“This is a highly performing fund and an appropriate place to take from,” Buck said.

SanfordNet is a 10-gig, 45-mile, municipal high-speed fiber optic network that will connect 87 so-called community anchor institutions, from banks to medical institutions, industry and business to municipal and school entities from Springvale to south Sanford. It will connect with the larger state high-speed fiber optic network, Three Ring Binder, in Wells.

The city is building an open access, non-discriminatory project. That means, once the network is built, the city will set rates to lease space to other networks, and they, in turn, will roll it out to homeowners and other businesses.

“I’m really excited about this project,” said Councilor Maura Herlihy.

“I’m a big advocate for this,” said Councilor John Tuttle.

Councilor Robert Stackpole expressed dismay over a requirement that the city must pay utility companies “make read” funds — to the tune of $487,000 — to access reserved municipal space on utility poles that is currently being used by other utilities. “Make ready” means the companies must move their lines so the city can use the space.

“That costs us,” he said. “And we still rent space on their poles.”

Construction is expected to begin once the EDA reviews the bid for compliance.

— Senior Staff Writer Tammy Wells can be contacted at 324-4444 (local call in Sanford) or 282-1535, ext. 327 or twells@journaltribune.com.