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TV <br />CIL <br />QT-1-1 <br />Community <br />Television <br />P 763.427.1411 <br />www.petv.org <br />12254 Ensign Ave. N <br />Champlin, MN 55318 <br />By law, transfer to GreatLand requires the approval of QCCCC's member cities. Applicable <br />law allows 120 days for review and action, but the deadline has been extended several times <br />by the companies and is March 13, 2015. <br />Consultants' Financial Report <br />QCCCC participated in a financial review of GreatLand with other local franchise authorities. <br />The consultants' report argues that divesture to GreatLand may result in increased <br />operational costs, upward rate pressure, potentially reduced capital resources available for <br />system needs and competition, and possible reductions in customer service quality. These <br />conclusions are based largely on the fact that GreatLand (and Charter) will be encumbered <br />with significant debt, and the fact that GreatLand is expected to pay more for video <br />programming than Comcast. Programming is typically a cable operator's single largest <br />expense. <br />It is important to note that applicable law does not specify criteria for evaluation of financial <br />qualifications of a cable transferee. The FCC Form 394 itself suggests that, at minimum, the <br />transferee must demonstrate "sufficient net liquid assets on hand or available from <br />committed resources" to consummate the transaction and operate for three (3) months. <br />GreatLand will incur indebtedness to "pay for" the 2.5 million subscribers, systems and <br />assets Comcast divests. GreatLand's debt amount is currently estimated at $7.8 billion. <br />Transfer Consent Conditions and Settlement Agreement <br />In conjunction with review of the transfer (divestiture) to GreatLand, QCCCC negotiated a <br />settlement agreement and resolution granting conditional consent to the transfer. The terms <br />can generally be divided into consideration or benefits, and conditions to address possible <br />concerns about GreatLand. Most of the consideration/benefits are contained in the <br />proposed settlement, while the resolution contains most of the conditions. <br />Transfer Resolution. By adopting the resolution, the City of Ramsey would consent to <br />transfer to Greatland with conditions including the following: <br />• Approval does not waive rights regarding any future franchise renewal process or <br />franchise compliance going forward, or retroactively for purposes of renewal. <br />• <br />