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Google Fiber to pay Louisville nearly $4 million as it pulls out of city

The money from Google Fiber, which is part of Alphabet, will go toward roads and other public rights-of-way affected by its departure.

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Google will pay Louisville nearly $4 million. 

Jason Hiner/CBS Interactive

Alphabet-owned Google Fiber has agreed to pay $3.84 million to the Louisville government to restore roads and other public infrastructure affected by its departure from the Kentucky city.

"Infrastructure in neighborhoods and public properties affected by Google Fiber will look as good or better than they did before the company began construction, just as our franchise agreement stipulated," Grace Simrall, chief of civic innovation and Technology for Louisville, said Monday in a statement. "The city will diligently repair these roads and public spaces over the 20-month period."

This comes after Google Fiber decided in February to pull out of Louisville. Google Fiber deployed gigabit internet in Louisville for five months, but problems with the process led the company to cease operations in the city.

Google Fiber stopped service in Louisville on Monday night, according to the statement. 

Google Fiber is also donating $150,000 to the Community Foundation of Louisville's Digital Inclusion Fund, which will refurbish used computers for low-income users and provide low-cost internet access. 

"Discontinuing service in Louisville was a very difficult business decision for Google Fiber," Google Fiber general manager Mark Strama said in the city's statement.