Judge clears sale of Salt Lake Tribune building

A federal judge's ruling allows the current owners of the Salt Lake Tribune to go ahead and sell the downtown Tribune Building, its presses and other downtown real estate, despite the objections of the newspaper's former owners.

The McCarthey family has tried to prevent the sale of the building and presses. The family claimed 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 they learned in December 2006 that current Salt Lake Tribune owner 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 have also been relocated to a new multimillion-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 McCartheys' Salt Lake Tribune Publishing Co. told Cassell that the Tribune's assets have been so dramatically altered that it has become almost impossible for their clients to buy the paper back in the way it was several years ago.

Instead of trying to buy the paper in its current state, the Tribune Publishing lawyers said they want a jury to provide monetary compensation that would bring the company 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 that the McCarthey company has a right to purchase the newspaper back. The newspaper was sold three times during the past decade, but after the latest sale to MediaNews, there was contention over the purchase price. The McCarthey family believed the paper was worth $200 million or less and took issue with an appraisal that set the market value at $355.5 million.

In his order, Cassell said given the change in McCarthey company's focus, it is unlikely the publishing company will succeed in its lawsuit, and 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 that 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, MediaNews will need the Morning News' consent.

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E-mail: gfattah@desnews.com