"We think we've done the right thing," trustee George Brown said
of the 4-0 vote in favor of accepting the terms.
Daystar's attorney argued before the vote that the company should
have been named the highest responsible bidder for its $25.1-million
cash offer, which would provide instant relief to the cash-strapped
district. The California Education Code states that community college
districts can sell property "for cash" to the "highest responsible
"[The trustees] completely glossed over the fact that they
violated California law," Daystar's attorney, Richard Sherman, said.
"[The foundation] clearly can't pay even the down payment. It's a
joke. I'm hopeful the courts will do justice and what happened
tonight will be set aside."
The total purchase price of the agreement is $28 million, with $8
million up front and the rest on a promissory note, significantly
less than the $32-million bid that the district accepted from the
foundation in October. The decreased amount, district officials said,
takes into account other compensation, such as television programming
that the station will provide for the district, including 40 hours a
week of televised college courses.
Daystar's suit is asking the courts to halt the sale and allow it
to buy the station for its originally offered price. Sherman
reiterated a proposal from Daystar to allow the KOCE-TV Foundation to
program one channel on its digital spectrum if his client is allowed
to buy the station, but foundation President Bob Brown wasn't
"Whoever owns the [broadcast] license is in control," he said. "We
would be totally at the whim of someone else."
Trustees will be taping depositions next week for the case, and a
hearing may take place as early as next month.
Before the vote, a representative of another early bidder for the
station, Community Educational Television, spoke out against
Daystar's legal action. That organization is part of Costa Mesa-based
Trinity Broadcasting Network, another Christian broadcaster.
"We ask Daystar to dismiss this ill-conceived lawsuit and allow
the process to move forward as intended," said John Casoria, attorney