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By Rosemary Pollock
Tribune Sale Case Kills Sale of $2 million Lot
SALT LAKE CITY, UTAH -- The purchase of a $2 million piece of property west
of Salt Lake City by Deseret News Publishing Co. and Kearns-Tribune Corp;, a
subsidiary of MediaNews Group Inc., has been stopped by Tribune publisher
and Newspaper Agency Corp. President Dominic Welch who changed a clause in
the agreement rendering it illegal to the property's owner, Zions Securities.
Welch claims he modified the buy-back clause to include Salt Lake Tribune
Publishing as the agent in charge instead of Kearns-Tribune. "I could not
sign for Kearns-Tribune, since I represent Salt Lake Publishing," Welch
said. In addition to the delay, The News and MediaNews Group Inc. of Denver
also want U.S. District Judge Ted Stewart to limit the Tribune's rights
under the management agreement.
Tribune Publishing has been accused of trying to hinder the News' attempts
to become a morning newspaper and to "weaken and eliminate" the LDS-Church
owned News as a competitor. The dispute is to be tried in June by Judge
Stewart and is expected to focus on three key agreements. The 49-year-old
joint operating agreement (JOA) by which the two Salt Lake City papers share
advertising, circulation, printing and marketing, the 1997 agreement that
gives Tribune Publishing the right to manage The Tribune and a 1997
purchase option that gives Tribune Publishing the right to buy the newspaper
after July 31, 2002.
The 20-acre property at about 370 North and 5600 West is owned by Zions
Securities Corp., an arm of The Church of Jesus Christ of Latter-day Saints
who also is an owner of Deseret News.
Sources:
Tribune Publisher Complicates Land Deal for Printing Press
Salt Lake Tribune 15Nov01 B3
By Connie Coyne: Salt Lake Tribune
D-News says Trib is out to destroy it
Deseret News 13Nov01 B3
By Angie Welling: Deseret News staff writer
Deseret News Wants to Void Key Option
Salt Lake Tribune 14Nov01 B3
By Kristen Moulton: Salt Lake Tribune
D-News Has Ally In Fight, LDS Church gives off-stage support
Salt Lake Tribune 4Nov01 B4
By Karl Cates: Salt Lake Tribune
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