Christian broadcaster threatens suit over KOCE sale

Marisa O’Neil

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

District is experiencing technical difficulties.

Christian broadcaster Daystar Television Network is threatening

the district with a lawsuit, saying it should have named them the

highest responsible bidder. Daystar’s attorney, Richard Lloyd

Sherman, said the company feels it was pushed aside because of the

network’s religious programming.

“That was not said, but that’s what can be read into it,” Sherman

said.

After an extensive bidding process with six bidders, the district

awarded the bid to the KOCE-TV Foundation -- the only nonreligious

broadcaster -- in October. The foundation promised to keep the

station’s public broadcasting format.

“We were the highest bidder,” Sherman said. “We’re seeking to

essentially have Coast Community College District adjudicate that the

[KOCE-TV] foundation was not the highest bidder.”

Daystar has not yet filed the suit, but the papers are ready to

go, Sherman said, and they were being sent to the district on

Thursday.

By law, the district was required to select the highest

responsible bidder. Almavision Hispanic Network came in with the

highest bid, at $35 million. But the district worried the company

could not come up with the cash and rejected their bid.

The KOCE-TV Foundation, backed by Orange County business and

education leaders, came in with the second-highest total bid, $8

million cash and $24 million on a long-term note.

Daystar, based in Texas, submitted the next-highest total bid at

$25.1 million in cash. They submitted a second bid, of $40 million,

after the Oct. 10 deadline.

“The suit says the Coast Community College District is in

violation of state law and has not complied with statutes regarding

the sale in two respects -- [the KOCE-TV Foundation] was not the

highest responsible bidder and their bid was not cash,” Sherman said.

“They don’t have the discretion to pick and choose. They have to pick

the highest and they violated that flagrantly.”

Coast Community College District officials could not comment on

the potential suit, but spokeswoman Erin Cohn said they did receive

the letter.

“I know the board [of trustees] will be discussing it in closed

session on Wednesday,” she said.

The district board of trustees gave the go-ahead to the sale in

December, allowing them to apply to the FCC for the broadcast license

transfer. Foundation members have promised to expand the station’s

role in the community as well as its educational and arts

programming.