Bandwidth.com relocation to Durham falls through

BCR Exclusive: Here's one to unfortunately file under ones-that-got-away -- for now, at least.

In the last few weeks, downtown circles have buzzed with rumors that Cary-based Bandwidth.com -- a provider of telecom and Internet services to small/medium businesses -- was on the verge of moving to downtown Durham.

Bandwidth.com, founded in 1999, employs 175 employees at the company's Weston Parkway offices, according to their web site.

In an interview with company executive chairman and co-founder Henry Kaestner this morning, however, the Durham resident announced that a deal to bring the firm and its employees to the Bull City.

Not that there haven't been clues. The City Council agenda last Monday night had a supplemental item whose title, as spoken during the meeting, included a reference to the firm. City Manager Tom Bonfield pulled the item, referring it two weeks out to avoid readvertising the item. According to an inquiry made by BCR to Durham officials last week, no printed version of the agenda item existed for dissemination.

 

Meanwhile, the County Commission entered closed session on Monday night to discuss "matters relating to the location or expansion of business or industry" -- no word if that is concerning Bandwidth.com or another subject.

This one wasn't to be, however. Bandwidth.com's Kaestner confirmed today his company had been in negotiations with another entity over a space in Durham, though he declined to name the firm in question.

Speculation in local real estate circles -- unconfirmed by Kaestner -- had focused on American Tobacco's Hill Building, the home of soon-to-depart Motricity. Unlike most of the ATC, the Hill Bldg. is owned by Struever Bros. Eccles & Rouse, to whom Capitol Broadcasting transferred control along with most of the north half of the campus before Phase II began.

SBER Durham head Ken Reiter did not respond to a request for comment placed earlier this week.

Kaestner noted that both the city and county had been very supportive in their efforts to bring the company from its Cary office space to Durham, but that the negotiations with their counterpart in the discussions had fallen through.

The co-founder noted that his firm is under no pressure to move anytime in the next two and a half years, but that it would continue to explore options throughout the Triangle.

Both Kaestner and fellow co-founder David Morken are both active in Durham charitable work, according to their biographies on the Bandwidth.com web site, with Kaestner engaged with a charity in what he described as start-up mode; Kaestneris also engaged in working with several local non-profits, including serving on a number of boards of directors.

Kaestner stressed, however, that the firm was not in any way limited to looking at the Bull City; instead, he noted, the company would keep the interests of its 175 employees in mind and would continue to explore space options in Durham, Raleigh, Cary and other parts of the Triangle as needed.

Comments

[Emily]

Have you seen this Kevin?

Business Week named Durham, N.C. (yes, Durham, N.C. not "Raleigh-Durham" or "Durham-Chapel Hill"; hooray!) the #3 best place in the country to live during a recession, following Arlington, VA, and Washington, D.C.

http://images.businessweek.com/ss/08/10/1014_recession_cities/index.htm

[Former Mo']

There's more Durham connections than just the founders. In fact, more AmBacco connections. Bandwidth's CFO Matt Petzold could've gotten his old office back in the soon-to-be-former Motricity office.