Salt Lake City Council to discuss loan to bail out public radio's KCPW
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The Salt Lake City Council is discussing a bailout loan to public radio station KCPW after a first attempt through the Redevelopment Agency was later overruled by RDA attorneys as being ineligible for funding.

KCPW license-holder Wasatch Media must come up with $220,000 to pay off one of its loans or face default and possibly lose the NPR-affiliated station. Earlier this month, the City Council, in its role as RDA Board, unanimously approved a six-month loan to get the station past the financial challenge. But on second examination, RDA attorneys found the loan ineligible because the money would go to ongoing expenses rather than a capital investment such as a building or new equipment.

The City Council and the mayor's staff will explore lending money from the Salt Lake City Revolving Fund. Technically, that fund cannot be used for a nonprofit organization. But the City Council has the discretion to make an exception, as it did when it lent $600,000 to The Leonardo arts and technology museum earlier this year.

The loan will be discussed at the City Council meeting Tuesday and, says Economic Development Director Bob Farrington, the council could act immediately to approve the new loan to meet KCPW's Nov. 1 payment deadline.

The council overwhelmingly supports a KCPW loan, said Councilman J.T. Martin. Martin said he wants to discuss the precedents for loans to nonprofits.

Councilman Luke Garrott argued in a Sunday Tribune guest opinion column that it would be "irresponsible" for the city "to let one of our public radio stations fail in a time of uncooperative private lending."

Martin emphasized that it's appropriate for municipalities to financially support news-gathering businesses — he pointed to similar help that was offered to KUTV Channel 2 when it moved into its downtown studios and Salt Lake City Weekly when it moved to Main Street. He also pointed out that MediaOne, the West Valley City printing, distribution and advertising facility for The Salt Lake Tribune and Deseret News, was built with a municipal financial incentive.

"It's rich that the press seems to think it's above it all," Martin said, referring to a Tribune editorial last week that criticized the KCPW loan.

"KCPW is an asset to Salt Lake City and particularly to my district," Martin said, noting that he has gotten no emails in opposition to the loan. "The listenership among my constituency is huge."

Council members say it makes sense to lend to news-gatherer.
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