Christian Network Asks Court for KOCE-TV

Two weeks after a state appeals court overturned the sale of Orange County’s PBS television station to a private foundation, one of the losing bidders -- a Christian broadcasting network -- asked the court Friday to give it the station.

Dallas-based Daystar Television Network maintained that it should be awarded ownership of KOCE-TV because the court ruled its $25.1-million offer was the highest.

On June 24, the 4th District Appellate Court in Santa Ana had called the sale of Channel 50 to the KOCE-TV Foundation, which has kept the station a PBS affiliate, “the rankest form of favoritism.”

Until the sale, the station was owned by the Coast Community College District in Costa Mesa, which decided to sell it and use the proceeds for education.

The three-judge panel said that the district botched the sale and that it must keep the station or hold a new round of bidding.

“Setting aside the sale to the foundation is simply not an adequate remedy for us,” said Daystar attorney Richard Sherman.

At issue was the price each bidder offered. The foundation, made up of Orange County civic and business leaders, made an offer that they said amounted to $32 million over 30 years. Experts said the final deal was worth just $12.5 million to $19.5 million in current dollars.

Daystar offered $25.1 million in cash and upped the bid to $40 million the day after bidding closed.

The district turned down the offer, saying it came too late.

In its petition to the court, Daystar said that even though the sale was overturned, it fears the college district will remain the station owner. The Texas broadcaster also is concerned that the district will maintain ownership but let the foundation continue its oversight of day-to-day operations.

In addition, Daystar maintains that if the district hadn’t been so intent on keeping the station out of the hands of a Christian broadcaster, it would have won the bidding. Daystar also has said it would not continue the station’s affiliation with the Public Broadcasting System.

“If this honorable court does not so determine, then the television station that should be Daystar’s will never be,” attorney Ken Nathanson wrote.

Mel Rogers, president of the foundation and the TV station, said that it was up to the Federal Communications Commission to award broadcast licenses, which are necessary to go on the air. Walt Howald, president of the district board of trustees, declined to comment until he had read Daystar’s petition and had talked to district lawyers.

Meanwhile, district spokeswoman Erin Curtis said the district planned to ask the appeals court for a rehearing. The district’s board will make a decision at its July 20 meeting.

The district’s attorney, Milford W. Dahl, has said he would recommend the trustees appeal the case to the state Supreme Court.