(A) Any franchise granted hereunder cannot in any event be sold, transferred, leased, assigned or disposed of, including but not limited to by force or voluntary sale, receivership or other means, without the prior consent of the city, which consent shall be not be unreasonably withheld, and then under such reasonable conditions as the city may establish.
(B) The grantee shall promptly notify the city of any actual or proposed change in, transfer of, or acquisition by any other party of control of the grantee. The word “control” as used herein is not limited to major stockholders but includes actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the disposal by the grantee, directly or indirectly, by gift, assignment, voluntary sale, merger, consolidation or otherwise, of 5% or more at one time of the ownership or controlling interest in the system, or 20% cumulatively over the term of the franchise, of such interests to a corporation, partnership, limited partnership, trust or association, or person or group of persons acting in concert.
(C) Every change, transfer or acquisition of control, as defined above, of the grantee shall make the franchise subject to cancellation unless and until the city shall have consented thereto, which consent will not be unreasonably withheld. For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the city may inquire into the legal, financial, character, technical and other public interest qualifications of the prospective controlling party, and the grantee shall assist the city in any such inquiry. Failure to provide all information reasonably requested by the city as part of said inquiry shall be grounds for denial of the proposed change, transfer or acquisition of control.
(D) The city agrees that any financial institution having a pledge of the franchise or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify the city that it, or its designees satisfactory to the city, will take control and operate the cable television system. Further, said financial institution shall also submit a plan for such operation that will ensure continued service and compliance with all franchise obligations during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year, unless extended by the city at its discretion, and during said period of time it shall have the right to petition for transfer of the franchise to another grantee. If the city finds that such transfer, after considering the legal, financial, character, technical and other public interest qualifications of the applicant, is satisfactory, the city will transfer and assign the rights and obligations of such franchise as are in the public interest. The consent of the city to such transfer shall not be unreasonably withheld.
(E) The consent or approval of the city to any transfer of the grantee shall not constitute a waiver or release of the rights of the city in and to the streets and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of this chapter and the franchise agreement.
(F) In the absence of extraordinary circumstances, the city will not approve any transfer or assignment of the franchise prior to completion of construction of the proposed system, excluding annexation.
(G) Any approval by the city of transfer of ownership or control shall be contingent upon the prospective controlling party becoming a signatory to the franchise agreement, as provided in § 14-12(C) herein.
(Ord. passed 2-16-93)