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I I I Council Meeting Minutes September 23, 1986 Announcements and Updates Schmidt announced there was a seminar workshop on September 17, 1986, with cities on public access, particularly governmental access; cities should become more active and either ~use it or lose it;~ and reported New Brighton was further ahead than the other cities on the ten-city Commission. Schmidt also reported there was a Public Meeting on September 18, 1986, on the application for transfer of the Group W system to Gus Hauser and the new entity that is being created with Hauser at North Central Communications Company which includes Continental Corporation (which has the St. Paul cable system) as a 50% owner. After considerable review of the money that is being invested on an equity basis as well as the $50 million that three banks are kicking in, there is enough money to buy the system but all of the economic indicators are that there would not be enough revenue to operate the system (in years three-five there would be a sig- nificant negative cash flow). The Commission asked staff and the applicant to meet and deter- mine how the negative cash flow would be taken care of if the applicant was to receive approval on the transfer. Schmidt further reported that staff and the applicant did meet on, Friday, September 21, in an attempt to clarify some numbers that had been used in the pro forma, and that a continuance of the Public Meet- ing will be held on October 8, 1986. Schmidt stated if the municipal ownership pro formas show the north suburbs could financially pay for the aquisition and opera- tion of the system (which is being done solely on the basis of reviewing it as a prudent governmental and responsible act in light of the possibility that this transfer could result in some some changes to the grants that were given to public access as well as recognizing that the franchise fees we will receive this year and in future years could be taken away by court action or congressional action), there would be a special meeting on October 2, 1986. Schmidt advised the Commission he would not favor having a special meeting to look at municipal ownership unless the financial pro formas were very positive; two cities stated under no circumstances did they want to look at municipal ownership, whereas three cities felt the Commission should look at the possibility. Page Fifteen Announcements and Updates Cable Update