Torrance : Cable TV Transfer Denied

Citing doubts about the honesty and competence of the company that wants to take over Torrance’s cable television franchise, the City Council voted 6 to 1 to deny transfer of the operation to Century Communications Corp.

Torrance is the first South Bay city to deny Century’s application to take over a Group W Cable franchise system. Similar requests are pending in Lawndale, Hawthorne, El Segundo and Gardena.

The vote came after five hours of debate that included a sharply worded recommendation from City Manager Leroy Jackson to deny approval and a rebuttal from Century President Leonard Tow.

“I listened to myself criticized in the city manager’s report,” Tow said. “I’m happy my mother is not here. She would have been in tears.”

A key point in the discussion was Century’s refusal to give city officials revenue projections or say whether a rate increase was planned. Tow said he was unable to make projections because he needed further data.

He said in an interview that he had been able to obtain $400 million in a bank loan for acquisition of Group W Cable, including the Torrance system, without providing expected revenue figures.

“I am beside myself to assume that there are lending institutions that lend $400 million without having some kind of projections,” Councilman Bill Applegate said.

Council member Dee Hardison said she found it hard to accept Tow’s statement that he needs three to six months before he can determine costs and make rate-increase estimates because Century already has had four months to determine what is needed. The cable company ran the Torrance system from June to October, when the city obtained a court injunction forcing Group W to resume control.

Council member Dan Walker opposed the denial.