Court voids KOCE sale

Marisa O’Neil

KOCE-TV won’t see significant changes for the foreseeable future, its

operators said, despite an appeals court decision last week that

leaves the future of Orange County’s only public broadcasting

television channel in jeopardy.

A state appeals court last week voided the Huntington Beach-based

station’s sale by the Coast Community College District to the KOCE-TV

Foundation, the station’s fundraising arm.

The decision would mean the district would have to return an

$8-million deposit paid by the foundation and have the broadcasting

license transferred back to its name.

But the station plans to go ahead with the status quo, President

Mel Rogers said.

“I’d be really surprised if, in the end, we didn’t continue to

move forward,” he said.

The station will continue to operate “on behalf of the people of

Orange County,” though some new initiatives planned by the station

may roll out slower than hoped, he said.

Milford Dahl, an attorney for the district, said he will recommend

an appeal to the state Supreme Court. The next opportunity for

discussion will take place at the July 20 board meeting.

“I’m very disappointed in the opinion,” Dahl said. “Not only the

result, but the way it was written.”

The opinion, written by Justice David Sills, called the district’s

decision to sell to the foundation rather than Christian broadcaster

Daystar Television Network the “rankest sort of favoritism.”

“They blasted the board members and blasted the district,” Daystar

attorney Richard Lloyd Sherman said. “It’s probably one of the most

scathing, sarcastic opinions I’ve ever seen written.”

Coast Community College District auctioned off the PBS affiliate

in 2003 to bolster its budget.

It took a bid from the foundation for $32 million -- $8 million

cash, plus a promised $24 million over 30 years.

It rejected a $40-million bid by Dallas-based Daystar, the

nation’s second-largest religious broadcaster, that came in after the

deadline closed.

The foundation bid was later reduced by $4 million to reflect

charges the station might incur if it switched from its PBS format.

Daystar sued the district last year, saying that its all-cash bid

should have won them the right to buy the station.

State law says school districts may sell property “for cash” to

the “highest responsible bidder.”

They lost the suit, but filed the appeal that prompted the latest

ruling.

The Federal Communications Commission has already transferred the

broadcast license to the foundation, which officially took over the

station last year.

The transfer was granted at the parties’ own risks, Sherman said,

and will have to be returned in light of the court ruling.

“We were right all along, now they have to assume that risk,”

Sherman said of the board trustees. “The board members made another

bad mistake and they’re all going to be sued.”

Sherman said he plans to file a lawsuit against the district and

each of its trustees, except Armando Ruiz, who was the only

dissenting vote in the sale.

If the station is returned to the district and put on the sales

block again, Daystar is “very interested” in bidding again, Sherman

said.

Rogers pointed out the programming that the station has put in

place since they took over. KOCE-TV launched a high-definition

channel and has added more local news coverage to its lineup, he

said.

“We’ve done a lot quickly,” Rogers said. “There’s still a lot to

do.

“We’ll keep marching on. I don’t think, in the end, it will undo

anything.”

QUESTION OF THE WEEK

Is it important that KOCE-TV remain a public station and not end

up owned by a religious group? Call our Reader’s Hotline at (714)

966-4691 or send e-mail to [email protected]. Please spell

your name and include your hometown and phone number for verification

purposes.