Channel 19 KBBV-CA Bakersfield is going from one party to another, and a third party in interest will be on hand to collect the proceeds from the sale, bringing to end the obligations and liabilities of the selling licensee.
The seller is Hispanic Bakersfield LLC, headed by Harry J. Pappas.
Acquiring the station is JACO Communications, headed by Fernando Acosta. By now, Acosta has some familiarity with the property – an LMA began right smack at the beginning of the year on 1/1/11.
The third party who will collect the cash and free HB of its obligations is Valley Public Television Inc., headed by Russell G. Smith.
The price is $150K. JACO will make a $25K down payment, pay $102K cash at closing and strike a promissory note in favor of VPTV worth the remaining $23K.
JACO is completely responsible for all costs and actions necessary to complete the station’s construction permit to go digital.
The terms of the LMA give JACO every reason to close the deal ASAP. The contract calls for a $10 security deposit (every apartment owner we’ve ever run into would laugh maniacally if we suggested putting that much into a security deposit account). And the monthly rent for the first 18 months is also the same scant $10 amount. After that, it skyrockets to $1.5K for the subsequent six months, and goes to $2K for the next 12 months.