Former Tribune owners file motion

The former owners of the Salt Lake Tribune have filed a motion in U.S. District Court, asking a federal judge to clarify the assets they are entitled to under a contested purchase agreement.

Specifically, Salt Lake Tribune Publishing, which is owned in part by the McCarthey family, is seeking a ruling stating that if they are allowed to buy back the Tribune, they are not obligated to purchase the $84 million West Valley Press facility built by the Newspaper Agency Corp., which is jointly owned by current Tribune owners Media News Group Inc. and by Deseret News Publishing.

The former Tribune owners argue that they are entitled to buy back the Tribune Building, located at 135 S. Main, and the press facility on Regent Street as well as the Urbanite plant on Gale Street — all located in downtown Salt Lake City. Because the West Valley press facility "did not exist" in 1997 when the option agreement was created, they are not obligated to buy it, and it should be deducted from the Tribune's overall appraised value, they claim.

The McCarthey family and Media News have battled over the appraised value in court for several years. The McCartheys claim a $355.5 million appraisal is invalid and contend the paper's value should be around $200 million.

The family has battled for more than five years to regain control of the Tribune after losing it in a series of corporate mergers for tax purposes. Media News purchased the paper in 2001, but the McCartheys claim they had a purchase option agreement to buy the paper back.

Under an agreement with Media News, the McCartheys can buy the paper back but at an appraised fair market value. Currently the $355.5 million appraisal is under review by U.S. District Judge Paul Cassell.

The new, 37-acre West Valley press facility went on line last March. Three new TKS Color Top 5000 presses from Japan are reportedly capable of printing up to 70,000 newspapers in one hour, compared to 50,000 papers with the old presses at the Regent Street facility.

In prior court filings, Salt Lake Tribune Publishing has questioned Media News' decision to move the Tribune's newsroom out of the Tribune Building and into The Gateway. Salt Lake Tribune Publishing also claims Media News has driven the Tribune into the ground, affecting the paper's appraised value, something Media News officials take issue with.

A message left with a Media News attorney Tuesday was not returned. A hearing has yet to be scheduled for the latest motion.

Sale of the Salt Lake Tribune - Read Deseret News' archive stories and see related links about the sale of the Tribune.

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E-mail: gfattah@desnews.com