(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 town and then, under the reasonable conditions as the town may establish.
(B) The grantee shall promptly notify the town 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 the 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 town shall have consented thereto, which consent will not be unreasonably withheld. For the purpose of determining whether it shall consent to the change, transfer, or acquisition of control, the town may inquire into the legal, financial, character, technical, and other public interest qualifications of the prospective controlling party, and the grantee shall assist the town in any such inquiry. Failure to provide all information reasonably requested by the town as part of the inquiry shall be grounds for denial of the proposed change, transfer, or acquisition of control.
(D) The town 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 town that it, or its designees satisfactory to the town, will take control and operate the cable television system. Further, the financial institution shall also submit a plan for the 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 town at its discretion, and during the period of time it shall have the right to petition for transfer of the franchise to another grantee. If the town finds that the transfer, after considering the legal, financial, character, technical, and other public-interest qualifications of the applicant, is satisfactory, the town will transfer and assign the rights and obligations of the franchise as are in the public interest. The consent of the town to the transfer shall not be unreasonably withheld.
(E) The consent or approval of the town to any transfer of the grantee shall not constitute a waiver or release of the rights of the town 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 town will not approve any transfer or assignment of the franchise prior to completion of construction of the proposed system.
(G) Any approval by the town of transfer of ownership or control shall be contingent upon the prospective controlling party becoming a signatory to the franchise agreement, as provided in § 111.017(C).
(H) The town reserves the right of first purchase in any sale, transfer, lease, assignment, or disposal of the system at a cost at least equal to a bona fide offer otherwise acceptable to the grantee.
(Ord. passed 10-13-1998)