[BC] City of Dallas & WRR

[PeterH5322]

>Peter, I believe it's a frequency swap PLUS 50 mil in cash. Also it's owned 
>by the City of Dallas so I don't believe taxes would be an issue here. I 
>haven't read the article but that's what my former WRR M.D. told me the 
>other day and he stays on top of these things. I'll have to look into it 
>more myself.

Assuming a swap of physical plant is included, which I don't think is the 
case, Dallas would get a non-comm allocation of a 100 kW C for its comm 
allocation of a 98 kW C.

A wash, more or less, insofar as coverage.

I would expect the city would have an appraisal done of each station, 
with the cash component being at least equal to the difference.

In a top 5 city, which I believe Dallas is ... it is certainly well 
within the top 10 ... a commercial 100 kW C should be worth several 
hundred mill.

So, perhaps this is really a swap which should fly, and then the tax 
exempt foundation which then would own the comm 100 kW C could figure 
some way of dealing with the tax recapture, should it decide to sell.

As long as the City of Dallas has no intention of getting out of 
broadcasting, this may make some sense.

But, should this deal be for the short term, to pump up the general fund 
by $50 mill, just this year, then I wouldn't do it.