TV station sale worth soap opera of its own

Marisa O’Neil

What started out as an attempt to bolster a cash-strapped college

district has turned into a drawn-out financial and legal battle with

more twists and turns than a plot line from “Mystery!”

The denouement could come Wednesday night when Coast Community

College District trustees vote whether to accept an agreement for the

KOCE-TV Foundation to purchase Orange County’s only public

broadcasting channel. Since the trustees decided in October to take

the local fundraising group’s bid of $25.5 million with $8 million up

front, a series of missed deadlines, lawsuits and accusations of

irresponsible business practices have stalled the sale.

Even if trustees go ahead with the deal, which looks more likely

after the foundation removed a contentious condition of the sale this

weekend, they still face a lawsuit from spurned bidder Daystar

Television Network. The Dallas-based Christian broadcaster has asked

a judge to stop the purchase and declare it the highest responsible

bidder and has served deposition notices on the district trustees.

“Daystar is attempting to use intimidation, pressure and threats

to get its way, and those efforts in this community will fail,” said

Bob Brown, chairman of the KOCE-TV Foundation. “If anything, those

heavy-handed tactics only reinforce why Daystar is exactly the wrong

organization to own Orange County’s only public television station.

KOCE-TV is a community asset, and we intend to defend it vigorously.”

KEEPING IT PUBLIC

Trustees George Brown, no relation, and Jerry Patterson have each

expressed the district’s desire to maintain the station’s public

broadcasting format, something the foundation has promised to do. If

KOCE-TV is sold to another entity that stops airing PBS programming,

the district’s attorney, Milford Dahl, said, the Corporation for

Public Broadcasting could sue for return of $22 million in grants and

equipment.

The district and foundation each fired back at Daystar with

countersuits alleging that the bid came from a “sham entity,” not

Daystar, and that Daystar is not a responsible bidder. The

$25.1-million bid was submitted on Daystar letterhead, but as

Community Television Educators of Orange County.

The countersuits are not Daystar’s only pieces of legal

entanglement. The Federal Communications Commission is investigating

Daystar for improperly using its noncommercial educational channels

by selling air time and commercials, which is against regulations.

The probe follows a lawsuit by another Christian broadcaster,

Dominion Video Satellite, alleging that Daystar cut a deal with

EchoStar Satellite Corporation so it could get on the Dish Network,

violating EchoStar’s contract with Dominion.

KEEPING UP CLASSES

In a letter to the college district, Daystar President Marcus Lamb

said he would drop its litigation against the district if the

district allowed Daystar to buy the station.

He also offered to let the colleges and KOCE-TV Foundation program

one channel after the station’s digital conversion, which will open

up more stations. Daystar promised to preserve air time for the

college’s televised courses, which reach about 10,000 students.

But KOCE-TV President Mel Rogers doesn’t see that happening under

Daystar. If the foundation’s deal goes through, however, they plan to

roll out multiple channels over the next five years as the technology

becomes more accessible.

With digital technology, between three and five channels,

depending on content and picture quality, will be able to occupy one

station’s frequency. But right now, few homes have the costly

televisions that can pull down those compressed signals.

The KOCE-TV plan would expand its local programming, which, Rogers

said, includes educational content for 500,000 kindergarten- through

12th-graders.

“We’ve already started to position projects that will have an

impact on the community,” foundation board member Joel Slutzky said.

“Each one is designed to make a lasting impact on the community.”

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

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