In what is believed to be the first project to be funded in Texas under the USDA's Recovery Act, Valley Telephone Corporation of Raymondville (VTCI) was awarded $78.5 million on March 17.

The announcement was made by Agricuture Secretary Tom Vilsack and he said VTCI will get a $40 million loan and a $38.5 million grant made possible by the American Recovery and Reinvestment Act.

With the funding VTCI plans to provide high speed internet service, local and long distance telephone service and cable television service to subscribers in all of the 12 rural South Texas communities they serve.

VTCI general maser Dave Osborn told city commissioners last night, "We will provide state of the art service, it will be better than Verizon or Southwest Bell and it will be better than downtown Houston".

The company, he said, will expand its work force and hire at least 70 more people in Raymondville and as many as 130. VTCI will build a 2.-or--3 story office building on the east side of town and continue to use their facility on South Street.

VTCI will serve Raymondville, Falfurrias, Lyford, Santa Rosa, Sebastian, Premont, George West, Charlotte, Jourdanton, Orange Grove, Three Rivers and Agua Dulce.

Osborn said VTCI already offers local and long distance telephone service in Dilley, a community of 3,674 in Frio County. In one year VTCI took half of Verizon's customers, he said.

Plans call for construction to begin immediately and job fairs will be held to locate engineers, inspectors, draftsmen, and construction crews as the company builds a fiber optic network across South Texas.

"We will fill your motels and cafes as we hire contractors to build in each city we serve. Within three years we will provide 260 channels of television plus highspeed internet and television service at very competitive rates," John Bradford, of VTCI said last summer at a city meeting.

He described how VTCI provided its customers in Dilley with $20 gift certificates good for a Christmas ham or turkey and how they sponsored a Back-to--School barbecue for the community in August.

Commissioner Yolanda Alexandre summed up the feelings of others when she told Osborn, "Valley Telephone has always been supportive of the city and the chamber and we are all very pleased to hear this good news".

IN OTHER BUSINESS:

Commissioners watched a 20-minute film shot by local kids who are skateboarders. They brought a petition with 600 signatures asking the city to provide the money to build a skateboard park.

City manager Eleazar "Yogi" Garcia said it would cost about $50,000 to build a 50 ft. x 100 ft. concrete slab at the city park and equipment that goes with it.

Commissioners promised to consider the proposal at budget time.