Salt Lake City-based public radio station KCPW 88.3 FM announced Wednesday that it has reached a deal to stabilize its long-term financial future.
The nonprofit outlet is restructuring the 2008 loan that Wasatch Public Media used to purchase the station, a move that will eliminate about $1.7 million in long-term debt.
"The debt burden that was taken on in 2008 saved KCPW; we would not be here today if those loans had not been made," station general manager Lauren Colucci said in a prepared statement.
"But it also has been the biggest threat to the station since," she said. "It became unsustainable for all parties involved and finding a resolution has been a priority. We are thrilled by what this means for the station's future."
The original loan was part of a $2.8 million deal that allowed Wasatch Public Media to purchase KCPW when it was put up for sale in 2008 by its former owner, Community Wireless of Park City.
The new agreement entails a five-year, $420,000 loan that buys out the $1.8 million note and accrued interest held by National Cooperative Bank (NCB), the senior lender for KCPW's 2008 purchase loan.
The loan was made by FJC, a foundation of philanthropic funds. The station also cited support from Jared Ruga and Jonathan Ruga, executive management team members of Sentry Financial; The Lawrence T. & Janet T. Dee Foundation; The Larry H. & Gail Miller Family Foundation, and loan guarantees from two anonymous supporters.
Had this deal not been struck, Colucci said, there was "a 'Hail Mary' plan in place to mount a public campaign," but a lack of organizational resources meant "we weren't optimistic it could be pulled off successfully."
The station has struggled for years. In 2011, it obtained a loan from Salt Lake City; in 2014, a fund drive aimed to raise $42,000 to pay for American Public Media programming; and later that year, the nonprofit's president and CEO, Ed Sweeney, resigned to save the station the expense of his position.
Now the station will focus on fixing infrastructure problems, such as increasing membership, growing staff, replacing outdated computer and broadcast equipment, and establishing a board of directors.
Each Friday morning, reporters from The Salt Lake Tribune discuss the week's news on "Behind the Headlines," broadcast by KCPW and Utah Public Radio.
