By Bill Zeeble, KERA 90.1 reporter
Dallas, TX – Bill Zeeble, KERA 90.1 reporter: For weeks now, negative publicity has swirled around the proposed radio deal. WRR and one of the stations involved in the swap, KRNB, waged their own on-air campaigns. By last week, the swap seemed doomed. Yesterday, the Council confirmed conventional wisdom. At a briefing, where no votes are taken, Council members expressed dissatisfaction with the proposal. Mayor Miller said it all began last August, when the city faced deficit approaching $100 million, and a deal seemed worth considering.
Dallas Mayor Laura Miller: We always said from the beginning if the station swap isn't a good one, if the frequency isn't good enough, we're not going to do it. But we're going to explore it to see what comes in.
Zeeble: Miller assembled a task force of four radio professionals to study what came in. Yesterday, members said the best of the four proposals would've moved WRR to 105.7, KRNB 105.7 down to 93.3, and 93.3 "The Bone" up to 101.1. The city would retain the license for its classical station, would receive $60 million from the parent companies of both commercial stations, and would hire KERA to run WRR. Veteran radio consultant Michael Greenberg, a member of the Mayor's task force, said there was a reason for the generous price tag.
Michael Greenberg, Radio Consultant: Because the truth of the matter is, there is a difference in signal between WRR and the other three submitters.
Zeeble: That difference, widely publicized over the past few weeks, is a weaker FM signal. Many Council members drove around town and concluded 105.7 isn't as strong in the southern sector. And on that point, Council members beginning with Lois Finkelman weighed in against the swap.
Lois Finkelman, Dallas City Council member: If the city of Dallas owns a radio station, regardless of what the format is, regardless of what it provides, then we have an obligation to make sure we provide the same level of quality throughout the city of Dallas (applause).
Zeeble: Councilman Ed Oakley suggested this deal, though not a sale, seemed close to one.
Ed Oakley, Dallas City Council member: We still own the station, we still own 20 years on the tower, but we're selling an asset, and that's the signal strength.
Zeeble: Still, several Council members, including Mayor Miller, Veletta Forsythe Lill and Gary Griffith, praised the proposal as a good business deal. Councilman John Loza agreed, and still wanted to consider management proposal.
John Loza, Dallas City Council member: I don't believe, at this point in time, that we have maximized our profit potential from WRR as it's currently run.
Zeeble: Miller's radio experts said WRR is the worst revenue-producing commercial classical station in the nation. KERA's marketing deal, the only one submitted, would deliver 20% of gross revenue to the city, with a minimum guarantee of $600,000 per year. And whether the LMA can now be considered alone is not clear, according to city attorney Madeleine Johnson. The city has requested a new proposal. KERA's Vice-President for Marketing and Corporate Development Yvette Harris said the public station remains interested.
Yvette Harris, KERA, Vice President of Marketing and Corporate Development: We think because of our experience and success with 90.1 that we're well positioned to take WRR to the next level and make it truly profitable for the city of Dallas.
Zeeble: Harris added that KERA could bring research and additional programming to WRR, especially since most of the nation's classical stations are non-commercial. But longtime WRR supporter and backer Sis Carr, who actively campaigned against the signal swap, thinks an LMA makes little sense.
Sis Carr, Friends of WRR, past president: We give all our profits now to the city. By the time they take out their profits and give us some, there won't be that much left.
Zeeble: The Council may bring up the Local Marketing Agreement for discussion again, but no future date's been set. For KERA 90.1, I'm Bill Zeeble.
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