Salt Lake approves loans for Channel 2's move to downtown

KUTV Channel 2 is one step closer to opening shop in the Wells Fargo Center on Main Street downtown.

The Salt Lake City Redevelopment Agency Board, along with the City Council (both groups consist of the same seven members), unanimously approved $4 million in mostly interest-free loans Thursday that would aid the television station's move from West Valley City to Salt Lake City.

KUTV news director Steve Charlier said the station will take the deal to Viacom, its parent company, for approval.

There was much discussion among the City Council about the loan. Some were nervous because so much taxpayer money was loaned at zero interest. Some wondered if it set a bad precedent, ensuring that city leaders will have to create a similar carrot for every new Main Street business.

At KSL-TV Channel 5, which has been Utah's lone television station downtown for decades, station President Bruce Christensen had a few concerns but generally welcomed the new competition.

Chief among KSL's concerns was that the deal was put together with no public comment and had been in the public eye for less than a week.

"We were curious," Christensen said. "That's the best way to describe the reaction around here. It was put together fairly quickly."

"We will welcome Channel 2 back to downtown," he said. "We thought staying in downtown was an important thing when we decided to stay here and everybody else moved out."

The $4 million in loans broke down with $1.2 million in interest-free money going directly to Channel 2 to be paid back in 15 years. As much as $700,000 of that money can be paid in "in kind" services. The plan is for KUTV to create four to six promotional campaigns a year that will promote downtown and Salt Lake City.

Some council members were concerned about the in-kind payments, but Alison Weyher, the city's Community and Economic Development director, said if the city doesn't approve of the promotions, the station will have to pay cash.

KSL also had some worries about the promotions.

"We would certainly not want the public to believe that Channel 2 is the Salt Lake City station," Christensen said. "We will work hard to make sure that the public thinks KSL and other stations contribute to this community." Councilwoman Jill Love said she is sympathetic to KSL, which has been located downtown for decades and moved into a part of downtown that was blighted at the time but is now rejuvenated.