Trustees opt to continue KOCE sale to foundation

Marisa O’Neil

Trustees for the Coast Community College District will stand by their

decision to sell public broadcasting channel KOCE-TV to the station’s

fundraising wing -- at least for now.

In a closed session at Wednesday night’s board of trustees

meeting, the district decided to give the KOCE-TV Foundation until

March 10 to meet the terms of the agreement. The attorney for the

district, Milford Dahl, said he would notify today spurned bidder

Daystar Television Network, which has threatened to sue the district

unless it allows them to buy the station.

“If we don’t have an agreement by March 10, we will terminate all

negotiations with the foundation and decide what to do with KOCE’s

license,” Dahl said.

Daystar’s attorney, Richard Lloyd Sherman, has already sent a copy

of the suit to the district and told Dahl he would file it

immediately if the district went ahead with the sale to the

foundation. Dahl said that Daystar also threatened to sue each of the

district trustees except Armando Ruiz, who had initially voted

against selling to the foundation.

“If Daystar sues, we will respond to the suit and probably file a

cross complaint for declaratory relief,” Dahl said.

Such a judgment would put the decision of who could buy the

station into the hands of the court. Other bidders in the process had

threatened to sue the district if they were not chosen.

The Corporation for Public Broadcasting has also told the district

it could sue for the return of $20 million in grants and equipment

given in the expectation that the station would air its programming.

In three letters sent to the district, Dahl said, Daystar has

claimed that its $25.1 million offer should have been named the

highest responsible bid. The California Education Code states that

community college districts may sell property “for cash” and must

sell to the highest responsible bidder.

The KOCE-TV Foundation made a bid of $32 million -- $8 million

cash and $24 million on a long-term note. Sherman said that meant his

client should have won.

The winning bid from the district came after a rallying by leaders

in Orange County business and education, including Broadcom Chairman

Henry Samueli and former baseball commissioner Peter Ueberroth. The

KOCE-TV Foundation has missed two deadlines to meet the terms of the

agreement since October.

The March 10 deadline, Dahl said, will be its last.

“They haven’t been as quick as we would like in responding and

haven’t taken the deadlines seriously,” he said.

* MARISA O’NEIL covers education. She may be reached at (949)

574-4268 or by e-mail at marisa.oneil@latimes.com.