Right of municipal acquisition.

Saint Paul Legislative Code, App. H, art. I, § 122

in effect

Section 122. - Right of municipal acquisition. 122.(a). In the event the Company forfeits or upon revocation or other termination of the franchise pursuant to provisions of this ordinance, or at the normal expiration of the franchise term, or in the event of any transfer, City shall have the right of first refusal to purchase the Cable system. The City may, if it chooses, acquire the Cable system and its assets and transfer the system and all its assets to a third party purchaser; without limitation, the City may enter into such a purchase agreement before acquiring the Cable system and its assets from the Company. 122.(b). If the City elects to purchase the System at the normal expiration of the franchise term, or upon transfer, the value of the Cable system shall be: the fair market value of the Cable system as an ongoing business concern, less the value of the franchise. The value of the Cable system shall be determined by a panel of three (3) independent appraisers agreed upon by the City and the Company. Should City and Company fail to agree upon the selection of three (3) independent appraisers, each shall select one appraiser. The two (2) appraisers so selected shall then select a third. If the City elects to purchase the System in the event of forfeiture, termination or revocation prior to the normal expiration date, the purchase price to be paid by the City shall be an equitable price. The parties agree that the equitable price shall be the Company's capitalization cost less depreciation. "Capitalization cost" shall mean the monies invested for the tangible assets that are being purchased, exclusive of intangible assets such as goodwill or value of the franchise. The date of valuation shall be no earlier than the day following the date for such forfeiture, termination or revocation. 122.(c). Upon exercise of this option and the payment of the above sum by the City and its service of official notice of such action upon Company, the Company shall immediately transfer to the City possession and title to all facilities and property, real and personal, of the Cable system, free from any and all liens and encumbrances not agreed to be assumed by the City in lieu of some portion of the purchase price set forth above; and the Company shall execute such warranty deeds or other instruments of conveyance to City as shall be necessary for this purpose. 122.(d). Notwithstanding the above, if the Cable system or any part of the Cable system is abandoned by Company, or if the Company fails to operate its Cable system in accordance with material provisions of this franchise during any time it is required to operate its Cable system, or the Company otherwise terminates its franchise, upon reasonable notice of at least thirty (30) days and an opportunity to be heard, the ownership of the Cable system or the abandoned portions thereof in Streets or on other Public property, or such portion as the City may desire, shall revert to the City and the City may sell, assign, or transfer all or part of the assets of the Cable system, or the City Council, at its option, may use or dispose of the system as it sees fit. The Company shall execute such quit claim deeds and other documents as may be necessary to transfer the Cable system or affected part thereof free and clear of liens and encumbrances to the City. 122.(e). Each contract entered into by Company with reference to its Cable system or operations under the franchise shall be subject to the exercise of the rights of the City under this Section 122. 122.(f). Nothing in this franchise in any respect affects the City's powers of eminent domain, or its right to exercise these powers with respect to the Cable system. 122.(g). The Company may not take any action that would interfere with the City's purchase rights, or take action that would have the effect of limiting the facilities and equipment available to the City. 122.(h). None of this Section 122(a)—(d) is intended to alter any rights the Company may have under 47 U.S.C. § 541(b)(3)(C).

Source: City of Saint Paul, Minnesota, City Charter, Legislative Code and Administrative Code (Municode Library, library.municode.com)URL: https://library.municode.com/mn/st._paul/codes/code_of_ordinances?nodeId=PTIILECO_AP_APXHCACOFROMSTPAIN_ARTIGRFRGEPR_S122RIMUACFetched: 11/1/2026