District extends KOCE deadline

Marisa O’Neil

Coast Community College District trustees voted Thursday to extend

the deadline for KOCE-TV’s buyer to come up with a down payment.

The KOCE-TV Foundation had until June 30 to prove it could come up

with the rest of its $8-million payment. But because a spurned bidder

has challenged the sale, the transaction can’t yet be completed,

making the deadline a moot point, said Milford Dahl, legal counsel

for the district.

“Since we couldn’t transfer the license anyway, we extended the

deadline to Aug. 5,” Dahl said.

Daystar Television Network is attempting to block the license

transfer while it appeals a decision by Orange County Superior Court

to go ahead with the sale by the district to the station’s

fundraising wing. Daystar had claimed in a lawsuit that it, not the

foundation, should have been named the highest responsible bidder for

the station.

Daystar’s attorneys claim that the network’s $25.1-million cash

bid should have been named the highest responsible bid by district

trustees in October. Atty. Richard Lloyd Sherman argued that

Daystar’s bid had a higher value than the foundation’s bid of $32

million, which was on a long-term note and has since been revised to

$28 million.

Foundation officials said they already have a letter of commitment

from National Cooperative Bank for the deal, including the remaining

$7.9 million of the $8-million down payment. They also have cash and

pledges as collateral, said Ardelle St. George, attorney for the

foundation.

“It’s not just pledges,” St. George said. “We have over $1 million

in the bank and we have some very notable leaders in the business

community in Orange County that are participating in the effort to

bring forth the new KOCE.”

The foundation has struggled in the past to meet deadlines set by

the district but, Dahl said, things do seem to be on track despite

the delay.

“I think it’s a solid deal ,” he said. “If the board didn’t think

it was solid they would’ve tossed it [Thursday] night.”

Ironically, Dahl said, if Daystar had not tied up the sale in

court and with the Federal Communications Commission, it would have

had the opportunity to buy the station.

“Had they not fought the FCC [transfer], the foundation would not

have had money and the board would have canceled the deal,” he said.

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

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