ACTION REQUESTED:
Title
Communication from the City Manager and Corporation Counsel with a Request to APPROVE the Transfer of Control of the Grantee in the FRANCHISE AGREEMENT dated January 8, 2015, between the City of Peoria and iTV-3, LLC.
Body
BACKGROUND:
On or about January 8, 2015, the City of Peoria (“City”) entered into a cable/internet Franchise Agreement with iTV-3, Inc. which was subsequently assigned to iTV-3, LLC on April 12, 2016. iTV-3, LLC is now seeking consent for the transfer of control from iTV-3, LLC to WH i3B Bidco LLC. City municipal code section 6-75(c) sets forth the requisite conditions for the consent transfer of control of a franchise. The ordinance requires proof of financial solvency and proof of the financial, technical, and professional capability of the proposed transferee.
WH i3B Bidco LLC (“Transferee”) is a newly formed entity for purposes of taking control of the franchise and, as such, it lacks two years of financial statements. However, the entity is managed by Wren House which itself is backed by the Kuwait Investment Authority. Wren House is a large multinational infrastructure investment manager and has submitted two years of financial statements. Wren House’s financial statements appear to demonstrate a strong degree of financial solvency.
Transferee also appears to demonstrate sufficient financial, technical, and professional capabilities to assume the franchise. Transferee plans to retain iTV-3’s current management and executive team. In doing so, it will effectively retain the existing technical and professional capabilities of the current franchise. Transferee will also gain access to the resources and expertise of the international infrastructure team at Wren House.
NEIGHBORHOOD CONCERNS: None.
IMPACT IF APPROVED: The transfer of the franchise will ensure the continuation of service for local iTV-3 customers and increase iTV-3’s market competitiveness.
IMPACT IF DENIED: The rejection of the transfer of the franchise may adversely impact iTV-3’s market competitiveness and prevent access to valuable multinational infrastructure expertise.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
DEPARTMENT: Legal