USC, Chapman University Both Trying to Buy KOCE-TV

USC and Chapman University in Orange are each negotiating to buy Orange County public television station KOCE-TV Channel 50, a deal that could be worth more than $30 million, officials confirmed Wednesday.

The Coast Community College District, which holds the station’s PBS license, recently commissioned an appraisal that valued the station at $29 million to $35 million.

Several USC executives, including the university’s chief financial officer and the dean of the film and television school, met with the lead negotiator for the college district and top KOCE staff Tuesday at the studios. USC officials involved in acquisition talks could not be reached for comment Wednesday.

Gary Brahm, executive vice president of Chapman, said that his university is “seriously interested” in buying KOCE and that a formal offer could be made within the next few weeks.

“We have an excellent, rapidly growing film and television program,” Brahm said. “And we’re always looking for ways to enhance the educational opportunities available for our students.”

KOCE, headquartered at Golden West College in Huntington Beach, is among the 15 most-watched public television stations in the nation, with 2.5 million viewers per week. It has won 27 Emmy Awards. The station’s signal reaches as far north as Van Nuys, as far south as San Clemente and as far east as Corona.

But since its founding in 1972, KOCE has broadcast largely in the shadow of KCET-TV Channel 28, the Los Angeles station with many more resources and viewers.

KOCE’s $5.5-million budget pales in comparison to KCET’s $49 million. The Los Angeles station is also a leader in producing original programs that are broadcast on public television channels across the country.

A new owner at the helm of KOCE raises the prospect of additional money both to produce more original programs and to buy programming from PBS and other sources. And the acquisition would give USC or Chapman the prestige of owning a broadcast station and enable it to integrate KOCE into its curriculum.

The college district’s board of trustees, which must approve the sale, is scheduled to discuss the matter Aug. 18 for the first time.

District board President Armando R. Ruiz said he has not decided how he would vote on a sale.

“I think KOCE is a valuable resource to the Coast Community College District and to Orange County,” said Ruiz, whose board oversees Coastline, Golden West and Orange Coast colleges. “I’m going to look at what’s in the best interest of both of them.”

Gene Farrell, a district vice chancellor and lead negotiator for Coast, said he leans toward a sale.

“It would provide cash to better serve the students we have, reduce our overhead by $1.5 million and allow us to expand our course offerings. There are wonderful possibilities if you have more money.”

Leaders of the district’s teachers association expressed interest in a possible sale, saying the station is consuming precious resources that could be used to improve instruction.

“The station has always been a drain on the general fund,” said Tina Bruning, president of the Coast Federation of Educators.

The district covers about $1.5 million of KOCE’s annual budget. The remainder comes from corporate and individual donations and others sources.

Like many public television stations, KOCE must spend millions over the next few years to meet Federal Communications Commission standards on digital television. Moreover, the station will need to raise an additional $6.2 million by 2003 to invest in new digital-television equipment, said KOCE General Manager and President Mel Rogers. The station has raised $800,000 so far toward that goal.

If fund-raising efforts fell short, the district would have to make up the difference.

“The district is asking itself whether it is willing and able to continue being the license holder,” Rogers said.

District Chancellor William M. Vega has removed himself from negotiations because he is a Chapman trustee, Farrell said.

The meeting Tuesday between USC and district officials lasted an hour and concluded with a tour of the facility. The USC team asked its KOCE counterparts about the station’s equipment, audience and budget, Rogers said.