The ownership structure of the applicant is a matter to be determined by the applicant; however, this discourages the solicitation and/or use of local citizens or affiliations for the purpose of influencing the award of a franchise. If local participation is a component of the ownership structure of the applicant, then the city desires that such local interests have a bona-fide investment in that company. Local ownership is not a requirement for receiving the award of the franchise. If an applicant includes participation of citizens of the city in its ownership structure, the city encourages innovative methods of structuring to maximize that participation. In reviewing ownership interests, the city will look with disfavor on proposals containing the following elements:
(A) Proposals in which any investor's percentage of stock is greater than the percentage of total funds or services actually invested. Services contributed in lieu of monetary investment may include personal services, materials, equipment or facilities, but such must be quantifiable.
(B) Proposals where investors have received loans or assurances of loans in the future from the cable company with which to purchase stock.
(C) Proposals where a cable company guarantees the investors little or no financial risk.
('65 Code, § 735.07) (Ord. 101-81, passed 11-3-81)