CapRadio Contests Its Endowment Board Giving Away Tower

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The fight over Sacramento’s Capital Public Radio is turning bitter as owner Sacramento State is battling the station’s endowment board over the board’s gift of a transmission tower used by CapRadio to KVIE-TV, who the board now wants to run CapRadio.

CapRadio are contesting the KXJZ broadcast tower donation, claiming that financial statements and a lease agreement confirm the tower is owned by CapRadio, not the endowment board, and sits on permanently restricted property.

Contrarily, endowment board president Dan Brunner maintains that the endowment has owned the property and tower since 2013, handling all related expenses including property taxes and audit fees. Brunner disclosed that recent discussions about the tower between Sac State officials and the endowment were followed by an appraisal valuing the property at $2.7 million.

Concerns about the tower’s maintenance were raised during the appraisal, prompting the decision to transfer ownership to KVIE, which has experience in tower upkeep.

KVIE General Manager David Lowe tole The Sacramento Bee that they are examining CapRadio’s claim of ownership and intend to honor all existing lease agreements.

This comes after the endowment board expressed its desire in March that Sac State sell its broadcasting license to KVIE, allowing the PBS affiliate to take over CapRadio operations. This proposal is part of what the board views as a beneficial move for all parties involved. Nonetheless, community and business leaders have urged Sac State to consider other partnerships to stabilize public broadcasting in the region.

Sacramento State remains committed to maintaining ownership of the Northern California NPR affiliate, CapRadio, despite the endowment’s push for a merger with KVIE. The university has taken control of CapRadio’s operations since September following a detailed audit that revealed significant financial mismanagement, including unauthorized loans over $1.1 million and sharp increases in liabilities from about $5.5 million to over $27.2 million in a year.

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