Judge clears sale of Trib building, presses

A federal judge has essentially given the go-ahead for the current owners of the Salt Lake Tribune to sell the downtown Tribune Building, its presses and other downtown real estate above the objections of the paper's former owners.

The McCarthey family has tried to prevent the sale of the building and presses, claiming they would be able to re-establish the paper's operations if they prevailed in court and were allowed to buy the paper back.

To that end, the McCartheys filed a motion for an injunction when it learned in December 2006 that current Salt Lake Tribune owners, MediaNews, planned to sell the Tribune Building, the presses on Regent Street and the Urbanite Facility, also located downtown.

MediaNews has since relocated the Tribune's office to the Gateway. Press operations for both the Tribune and the Deseret Morning News has also since been relocated to a new multi-million-dollar facility in West Valley City.

In a ruling issued Friday, U.S. District Judge Paul Cassell denied the McCarthey family's motion for the injunction, citing a recent change in the family's focus in trying to get the paper back.

Earlier this month, attorneys for the McCarthey's Salt Lake Tribune Publishing Co., told Cassell that the Tribune's assets have so dramatically altered that it has become almost impossible for his clients to buy the paper back the way it was several years ago.

Instead of trying to buy the paper in its current state, SLTPC said it wants a jury to provide monetary compensation that would bring SLTPC to the financial level it would have been if the paper had been repurchased. In addition, the company seeks rights to the paper's name, masthead, archives and downtown presses.

A federal court has ruled SLTPC has a right to purchase the paper back after it was sold in a series of corporate maneuverings, however there has been contention over the purchase price. SLTPC believes the paper is worth $200 million or less and takes issue with an appraisal that sets the market value at $355.5 million.

In his order, Cassell said given the change in SLTPC's focus, it is unlikely it will succeed in their suit and that there is no reason to bar MediaNews from selling the properties.

"In light of this new position, injunctive relief is not warranted here because Tribune Publishing has failed to demonstrate not only the likelihood of success on the merits but also that it will suffer irreparable injury without an injunction," Cassell wrote.

MediaNews attorney James Jardine confirmed the order gives his company the green light to put the properties up for sale but because the Tribune and Deseret Morning News jointly own the old presses and Urbanite Facility, through Newspaper Agency Corporation, they will need DMN's consent.

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E-mail: gfattah@desnews.com