1e. Cable TV, Transfer Ownership CITY QF
CHANHASSEN
ss.1\.kLi'
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
1 MEMORANDUM
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: April 11, 1988
ISUBJ: Cable Television Request to Transfer Ownership
Approximately 30 days ago the City received notification from
Dowden of its desire to sell its communications system, which
includes Chanhassen, to Triax Midwest Associates. Included with
that information was the proposed transfer agreement, sales docu-
mentation, their financial audit reports , and supporting documen-
tation (4-5 inches of documentation) . All information received
was forwarded to the City Attorney' s office requesting his
review, advice, and recommendation regarding how to proceed with
the request.
' During the past month, the City Attorney and this office have
discussed, hopefully, all aspects/options associated with the
proposed transfer. Although not shown in Mr. Knutson' s final
' opinion, I did have the attorney research the City' s ability to
require documentation regarding rates , programming, etc. His
findings in these areas were not surprising in light of a similar
' question posed to him approximately six months ago when Dowden
unilaterally proposed to increase their fee structure, i .e.
the federal legislation requiring deregulation of industries such
as airlines , communications and cable television has virtually
stripped local governments of most regulatory powers. The City
may keep intact its franchise agreement requiring certain main-
tenance levels, etc. In addition, the maintenance of a bond to
' insure that the technical aspects of the system are maintained is
allowed. In almost all other respects, deregulation removes
tb-
local control. A key provision was maintained in that, should the
City be dissatisfied with the regulations as established by the
company, the City does maintain the ability to acquire the system
at its fair value. To date I have not received $90 million
dollars worth of complaints and accordingly, am not proposing
' City acquisition.
I have had approximately three conversations with Triax/Dowden
representatives regarding the proposed transfer . All local
11
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Mayor and City Council
April 11, 1988
Page 2
operational personnel would remain employed with Triax as a part 11
of the merger. I have a great deal of respect for Dowden' s
(proposed Triax' s) regional manager, Mary Smith. Mary feels very
confident that the acquisition will improve not only her own
position, but also the positions of Triax and the City. The
"buying power" associated with larger networks for station II programming makes it very difficult for the smaller communication
systems to continue to compete. Dowden' s acquisition by Triax
should reasonably assure the City that rate increases will not
occur as often and that the level of programming can not only be II maintained but hopefully increased.
In light of recent agenda lengths, I have not encouraged repre- '
sentatives of Dowden or Triax to make a presentation before the
City Council. I am confident that they would be more than
willing and would welcome the opportunity to provide a presen- II tation of who they are, what they would propose, and why the
acquisition is necessary. Again, the City has maintained an
outstanding relationship with Dowden and all communications to
date with Triax would lead me to believe that that will continue
II
to be the case with Triax. Again, the Council may wish to ask
that a presentation be made solely to maintain the personal rela-
tionship which has existed over the past several years .
This office would recommend that the City Council approve in con-
cept the acquisition of Dowden by Triax Midwest Associates . As a
part of the concept approval, the City Attorney should be
II
instructed to prepare a franchise ordinance modification
reflecting the transfer while binding Triax to all portions of
the existing franchise agreement, including bonding. A potential
II
presentation by Triax could be made at the time of consideration
of the first or second reading of the modified ordinance.
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I LAW OFFICES
GRANNIS, GRANNIS, FARRELL & KNUTSON
DAVID L.GRANNIS- 1874-1961 PROFESSIONAL ASSOCIATION TELECOPIER:
I DAVID L. GRANNIS,JR. - 1910-1980 POST OFFICE Box 57 (612)455-2359
VANCE B. GRANNIS 403 NORWEST BANK BUILDING DAVID L. HARMEYER
Ewan B. KNETSCH
VANCE B. GRANNIS,JR. 161 NORTH CONCORD EXCHANGE MICHAEL J. MAYER
PATRICK A. FARRELL
DAVID L. GRANNIS,III SOUTH ST. PAUL, MINNESOTA 55075 TIMOTHY J. BERG
ROGER N. KNUTSON TELEPHONE(612)455-1661
II March 29, 1988
I Mr. Don Ashworth
City of Chanhassen
690 Coulter Drive, Box 147
IChanhassen, Minnesota 55317
RE: CATV
IDear Don:
You asked me to review the proposed sale of the Dowden Cable
II System, which includes Chanhassen, to Triax Midwest Associates.
Article X of the City' s franchise agreement with Dowden gives the
City the right to purchase the CATV system within Chanhassen.
I Assuming there is no interest in purchasing the system, Article
XI of the franchise agreement provides that the proposed sale
requires the City' s consent "which consent shall not be
I unreasonably withheld. " The new owner will be bound by the same
franchise agreement that binds Dowden. The only concern the City
may have is their ability to perform. Since Triax is investing
over $90 million dollars, presumably they think they can perform.
I The City could have a financial audit performed to determine if
they have enough capital to succeed, but I really don' t think
that is necessary. There is no feasible way of keeping Dowden in
Ibusiness and the sale, on i face, appear legitimate.
V-ry truly y urs, ,
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/B : _�
I C 'oger N. K tson
RNK:srn
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I MAR 3 0 1988
1/4..11-Y OF CHAN1-1A:, t-"
I
Dowden
111 Cablesystems
March 30, 1988 '
Mr. Don Ashworth, City Manager
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317
Dear Don:
On behalf of Triax Communications Corporation and
Mr. James C. Vaughn, its Director of Operations, I
am enclosing the following information for your review:
-Financial Statements for Year End 1987 r
-Organization Chart of Triax Corporate Staff
-Brief Biographies of Key Personnel
-Triax Growth and Development Brochure ,
Also enclosed is a proposed resolution from Triax for
your consideration.
If ou have any questions or need additional information,
y q ,
please do not hesitate to contact me.
Yours very truly,
1)\tow-rA A
Mary A. Smith
Regional Manager
MAS:mrf
Enclosures I
CC: James C. Vaughn
M. Kent Sharp APR 0 1 1988
CITY OF CHANhASSEN
•
Managed By Dowden Cable Partners,L.P., 2381 Wilshire Boulevard,Mound,Minnesota 55364 (612)472-6394
1 1 1 1 1 1 1 1 1 1 1 1 11111 1 1 r 1 1 -
TRIAX OPERATING COMPANIES
COMBINING STATEMENT OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1987
ELIMI•
TCC PERF G.P. TAI TAIL TAIII TAIV TDC NATIONS TOTAL
REVENUES:
BASIC REVENUES ••• -•- •-- 4,841,917 804,041 172,393 1,454,189 503,060 ••- 7,775,600
PAY REVENUES .-• -•- •-• 1,705,098 309,030 83,970 541,803 243,182 ••• 2,883,083
OTHER REVENUES 48,641 ••• ••• 1,105,228 173,256 29,631 148,882 43,351 ••• 1,548,989
AFFILIATE REVENUE 1,208,369 646,147 ••• •-- -•- •-• ••- -•- (1,765,126) 89,390
TOTAL REVENUES 1,257,010 646,147 0 7,652,243 1,286,327 285,994 2,144,874 789,593 (1,765,126) 12,297,062
EXPENSES:
PROGRAMMING •-• --• 1,449,046 240,915 64,849 424,979 177,659 ••• 2,357,448
OPERATING •-• 580,826 •-• 807,563 135,951 43,552 220,318 101,832 (580,826) 1,309,216
MARKETING .-• --- --- 247,402 59,953 3,610 76,343 12,346 -•• 399,654
GENERAL & ADMINISTRATIVE 861,121 •-• ••• 1,743,582 291,161 80,381 508,512 183,948 --- 3,668,705
TOTAL EXPENSES 861,121 580,826 0 4,247,593 727,980 192,392 1,230,152 475,785 (580,826) 7,735,023
CASH FLOW 395,889 65,321 0 3,404,650 558,347 93,602 914,722 313,808 (1,184,300) 4,562,039
INTEREST 6,389 1,777 ••- 2,851,507 349,444 134,037 1,080,385 322,009 (1,777) 4,743,771
MANAGEMENT FEES ••• --• -•- 382,611 102,906 20,019 107,243 55,269 (668,048) 0
DEPRECIATION & AMORTIZATION 28,239 18,191 ••• 3,256,576 467,897 196,969 883,160 424,234 (59,181) 5,216,085
EQUITY & LOSSES OF SUBSIDIARIES 1,124,000 •-- --• --- •-- -•• -•• ••• 1,124,000
NET INCOME (LOSS) (762,739) 45,353 0 (3,086,044) (361,900) (257,423) (1,156,066) (487,704) (455,294) (6,521,817)
CASH FLOW % 44.49% 43.41% 32.73% 42.65% 39.74%
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TRIAX
COMBINING BALANCE SHEET
DECEMBER 31, 1987
ELIMI-
TCC PERF G.P. TAI TAIL TAIII TAIV TDC NATIONS TOTAL
ASSETS:
CASH 250,541 1,000 ••• 206,417 52,754 24,203 153,810 291,263 ••• 979,988
ACCOUNTS RECEIVABLE, NET ••• 1,452 -•• 326,914 67,150 22,411 153,255 36,186 -•• 607,368
INVENTORY ••• ••• 595,104 118,821 3,243 58,704 36,500 ••• 812,372
PREPAID ASSETS 9,637 -•- ••- 41,712 10,900 210 18,283 9,651 •-• 90,393
PROPERTY, PLANT & EQUIPMENT, NET 147,542 64,929 --• 17,633,328 2,671,154 1,141,479 9,046,159 4,195,220 (45,353) 34,854,458
OTHER ASSETS, NET 20,667 ••• •-• 12,317,173 253,873 847,131 12,186,703 2,541,072 (409,941) 27,756,678
INTERCOMPANY ACCOUNTS, NET 336,233 28,577 (28,229) (307,748) (36,592) (113,425) (571,593) 692,777 •-• 0
INVESTMENT IN AFFILIATES 528,600 -•- 526,000 ••• ••• ••• ••• ••• (526,100) 528,500
1,293,220 95,958 497,771 30,812,900 3,138,060 1,925,252 21,045,321 7,802,669 (981,394) 65,629,757
LIABILITIES & EQUITY: ,
DEBT 22,840 4,840 •-• 26,655,910 3,384,958 1,350,000 19,158,123 5,962,139 --- 56,538,810
ACCTS. PAYABLE & ACCRUED EXPENSES 70,844 45,664 -•- 1,289,265 142,862 44,210 419,668 197,310 •-- 2,209,823
UNEARNED REVENUES ••- --- •-• 132,827 29,129 7,695 22,348 10,044 •-- 202,043
CONVERTER DEPOSITS ••• -•- ••• 325,360 73,084 10,770 1,249 880 •-- 411,343
OTHER LIABILITIES -•• ••• ••• 153,313 ••• -•• •-• -•• -•• 153,313
EQUITY 1,199,536 45,454 497,771 2,256,225 (491,973) 512,577 1,443,933 1,632,296 (981,394) 6,114,425
1,293,220 95,958 497,771 30,812,900 3,138,060 1,925,252 21,045,321 7,802,669 (981,394) 65,629,757
MI NM EMI MEI INS OM Mill IIII MI MN ME RN ME ME NM ME IIIII MN MN
TRIAX COMMUNICATIONS CORPORATION
I CORPORATE OFFICE ORGANIZATION CHART
MARCH 1. 19521
IJAMES OESCRREMIO
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TRIAX COMMUNICATIONS CORPORATION
MANAGEMENT BIOGRAPFIIES
1
JAMES DESORRE flO - Chairman of the Board and Chief Executive Officer
Mr. DeSorrento has served as Chief Executive Officer and Chairman of the Board of '
Triax Communications Corporation since the company's formation in 1982. He is also
a General Partner of Triax Associates I, L.P., one of TCC's operating affiliates.
Mr. DeSorrento has been involved in the cable television industry since 1970,
holding various operational and management positions over the 18-year period. Mr.
DeSorrento is a past president of the Ohio Cable Television Association, and was
active on the state's President Committee, an NCTA subcommittee formed to lobby
Congress regarding the passage of Copyright legislation. Mr DeSorrento has been
responsible for financing and managing the growth of TCC and its affiliates from
zero to nearly 60,000 subscribers. During this period, the Company won over 40 new
franchises and completed 16 acquisitions. Under Mr. DeSorrento's direction, TCC's
gross revenue has grown to over $18 million, and operating cash flaw has increased
to over $9 million. Prior to TCC, Mr. DeSorrento held positions of Vice President
of Corporate Development with U.S. Cable Corporation, a 150,000 subscriber cable
MSO; and spent almost five years as Vice President of Investment Banking at Daniels
& Associates, one of the largest investment banking and brokerage firms serving the
cable television industry. From 1970 through 1975 Mr. DeSorrento held various
operational and management positions with Viacom International, Inc., including
Director of Marketing, and General Manager in San Francisco, one of the larger cable
television systems in the early 1970's. After San Francisco, Mr. DeSorrento became 11 Viacom's Regional Manager in Cleveland, Ohio.
JAY R. BUSCH - President
Mr. Busch has responsibility for TCC's continuing operations with
areas of corporate finance, acquisitions, and corporate emphasis in the
rpo cqui rporate development. Mr. Busch's
14-year history in the cable business has focused on corporate finance and mergers
and acquisitions. Responsibilities include assessing capital needs and designing
funding alternatives to reach corporate objectives. As a Senior Investment Banker
with Daniels & Associates over the last eleven years, Mr. Busch completed financing
transactions totalling about $500 million; merger transactions totalling over $1
billion; and a variety of consulting projects for clients such as General Electric,
Tribune Company and Warner Communications, Inc. Mr. Busch assisted in the strategic
planning and development of the Investment Banking Division at Daniels which grew
from six people in 1977 to 20 people at the end of 1987. Mr. Busch is a regular
speaker on the financial panels offered at Paul Kagan Seminars, the National Cable
Television Association Conventions and Daniels and Associates seminars. Prior to
joining Daniels & Associates, he spent four years working for Syracuse University
designing, and implementing a cable television system on the University campus. Mr.
Busch completed his B.S. degree with a major in Finance at Syracuse University and
received his M.S. in Business/Engineering from the University of Colorado. '
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JAMES C. VAU N - Director of Operations
Mr. Vaughn has overall responsibility for the day-to-day operations of Triax
'
Communications Corporation and its respective operating entities, including
administration, plant construction, technical operations, franchise and customer
relations, budget and expense controls. Over the last six years, Mr. Vaughn has
held operations management positions with Enstar Communications, Harte-Hanks, and
most recently, with Tele-Co munications, Inc. in the 500,000 home Chicago system.
In these positions, Mr. Vaughn supervised start-up cable operations in Miami,
Florida, Chicago, Illinois and several smaller southeastern cainunities. Fran 1977
' to December, 1982, Mr. Vaughn was Director of Engineering for Cbx Cable Corporation,
supervising over one million total subscribers and specifically overseeing the
start-up of cable operations in New Orleans, Louisiana, Tucson, Arizona, Omaha,
I Nebraska and Cleveland, Ohio. Prior to joining Cox Cable, Mr. Vaughn held the
position of Director of Engineering in various Viacom International, Inc. cable
systems. In those positions Mr. Vaughn participated in many engineering projects
including the development and execution of satellite delivery and launch of Viaccan's
Showtime pay television service.
DAVID M. DOWNEY - Director of Marketing and Franchise Development
Since 1983, Mr. Downey has worked at a variety of operational positions with Triax
Ccarnnunications Corporation. Currently, Mr. Downey has responsibility to
' conceptualize and administer the direct marketing plan of TCC and its affiliates.
Additional responsibilities include rate planning and new property development.
Prior to joining TCC, Mr. Downey worked for U.S. Cable Corporation in their
corporate development office. In that position, Mr. Downey was active in system
franchising and assisted in system planning and budgeting. In 1980 and 1981 Mr.
Downey worked as a staff representative for the franchising efforts in New York,
Chicago and Los Angeles. Prior to joining the cable industry full time, Mr. Downey
produced television commercials for Los Angeles based retail advertisers and held a
door-to-door sales position near Pasadena, California.
J. MICHAEL PAUK - Corporate Controller
Mr. Pauk joined TCC in August, 1986, during the start-up phase of its corporate
headquarters. Mr. Pauk helped develop and implement financial, accounting and
' administrative controls including initial set-up of chart of accounts, computerized
general ledgers and reporting systems. Mr. Pauk is involved in a number of
acquisition projects and analyses including contract review, projections and
analyzing financial structures. Mr. Pauk is responsible for cash management,
regulatory filings, financial statement preparation, insurance coordination and
corporate administrative functions. Prior to joining TCC, Mr. Pauk held the
position of Audit & Accounting Manager for Arthur Andersen & Co. where he was
' responsible for all levels of planning, supervision, coordination and review of
audits of various sizes ranging from $1 million to $6 billion in assets.
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ERIC OLSEN - Regional Manager
Mr. Olsen is the Regional General Manager of the newly-acquired Illinois systems, I
where he molded together seven companies. He implemented policies to upgrade the
systems, raise rates and begin an extensive marketing campaign. Prior to being
appointed Illinois Regional Manager, Mr. Olsen held several positions in TCC II
affiliates, including Data Processing Manager, whereby he converted 16,000 recently
acquired subscribers into a new billing system. Upon joining Triax Associates II in
1983, he designed and oversaw the construction of 200 miles of plant in Indiana, '
serving 2,500 subscribers. He was System Manager of the North Webster, Indiana
system serving over 14,000 subscribers, which included duties in the areas of
engineering, marketing and budgeting. Prior to joining Triax Associates II, Eric
worked for U.S. Cable where he began as an installer in 1978 and rose to the II
position of Chief Engineer, a position he kept until leaving U.S. Cable.
STEPHEN R. TRIPPE - Regional Manager '
Mr. Trippe is the Regional General Manager of Ohio, Indiana and Michigan. He has
had extensive experience in the cable television industry during the past six years,
including the areas of marketing, customer service, franchising and operations. II
Prior to becoming a Regional Manager, he spent three years as a System Manager in
Waterville, Ohio, where he was responsible for the daily operations of the system.
Previous to this, he was selected as Marketing Manager for Triax Associates II in II
North Webster, Indiana. He spent two years in this position where he supervised and
maintained a sales staff of 12. His experience also includes three years as a
Platoon Leader of a combat engineering platoon in the Ohio National Guard. He spent
four years on active duty in the United States Army where he graduated from Officer
Candidate school and the United States Army Engineering School at Ft. Belvior,
Virginia.
GARY T. CROSBY - Regional Manager
Mr. Crosby has served as the Regional Manager in Illinois and Wisconsin for Dowden II
Cable, Inc. since joining the company in 1982. From his headquarters in Lena,
Illinois, Mr. Cosby has been responsible for construction and development of 29
systems serving 55 communities. Under his supervision, the regions have grown to
18,000 subscribers served by 525 miles of cable plant. Included as part of Mr. II
Crosby's responsibilities are management of 28 people, maintenance of a cable
network of systems from the East St. Louis area to Central. Wisconsin, and public
relations. Mr. Crosby is familiar with the franchising process and is active in II
community affairs. He is currently active in the Illinois Cable Television
Association and Chamber of Commerce affairs. Prior to joining Dowden, Mr. Crosby
was Vice President and third-generation principal of Crosby Cable Co., Inc., which
was founded by his grandfather in the early 1950's.
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' JOYCE VER1ACE - Regional Manager
Mrs. Vermace is Regional Manager for Cowden's Iowa systems and is a 6-year veteran
' of the company. She began her career assignment in 1982 by coordinating early
efforts in Iowa as Dowden pioneered the cluster concept of small community cable
television operations. Mrs. Vermace has played an active role in all phases of
' cable development and operations from franchising through construction to customer
service. She is responsible for a network of 35 systems serving 45 communities
which serve approximately 12,500 subscribers in Central and Eastern Iowa. Her day-
to-day responsibilities include personnel training and supervision, government and
' public relations, marketing and overall systems operation. Mrs. Vermace is Vice
President of the Iowa Cable Television Association and has lobbied in Washington,
DC, on behalf of the cable television industry. Prior to joining Cowden, she was
Shipping Coordinator/Dispatcher for Santee Cement Corporation in South Carolina.
MARY A. SMITH - Regional Manager
Mrs. Smith is Dowden's Regional Manager in Minnesota. She is responsible for
supervision and development of the 15 headends serving 43 Minnesota communities.
Her strong organizational skills, public relations and marketing efforts have placed
'
Dowden in a highly-respected position in an area where cable operators have often
failed to deliver on the expectations of cable television. Before joining Dawden,
Mrs. Smith was Manager of Zylstra/United Cable Television Company's Chaska and
Shakopee, Minnesota systems throughout the construction and initial
operations
stages. She coordinated land acquisitions for several headend sites, established
public access studios and business offices, hired staff, directed marketing and
sales, initiated television production workshops, and produced and hosted a weekly
' television show. Mrs. Smith was instrumental in setting up the Twin Cities Cable
Consortium and the Twin Cities Metro General Managers Committee. She is presently
Chairman of the Twin Cities Cable Marketing Consortium.
RIC HANSON - Regional Manager
Ric Hanson joined Triax in March, 1988 as Regional Manager. Prior to joining Triax,
' he was Regional Manager for Combined Cable Corporation for over nine years where he
operated systems in Minnesota, Iowa and Wisconsin. Mr. Hanson was responsible for
franchising 17 communities and overseeing the construction of 27 cable franchises.
' He converted all subscribers to CableData's on-line billing system and completed
CableData's training and conversion seminars. He built and operated the company's
only addressable system which linked ten communities' school systems together via
microwave. Mr. Hanson was also responsible for developing a four-state dispatching
system, allowing cable customers 24-hour services.
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'17+1 " CABLE TELEVISION IS OUR ONLY BUSINESS "
,, ) . . .•
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F , .
TRIA>K.
COMMUNICATIONS
CORPORATION
n 1982, conventional wisdom held that the cable industry had
become a big money game; that only giant conglomerates had the
financial resources to compete in this capital-intensive growth
business.
That same year, James DeSorrento and a partner committed their
personal resources to form Triax Communications Corporation.
Triax was founded on the belief that growth opportunities still
existed within the cable business, and that selective acquisition
• of cable properties and the application of sophisticated
management skills would result in superior financial performance
and exceptional increases in asset value.
{ Triax applied this concept to the marketplace, and the results have
consistently exceeded performance and growth projections.
Today, Triax Communications Corporation manages several cable
system complexes in 6 midwestern states and serves nearly 60,000
subscribers.
Triax Communications Corporation was founded at a time when the
cable industry was beginning the process of slowly consolidating.
The large multiple system operators (MSO's) were constructing major
urban franchises and acquiring adjacent properties to increase their
.0 share of the market.
I l ' • '�,.-`_."-'.1-1r
-q�'iii ;Il T `• '}. I �-.
Vii% 5i'r�"7 •rJ• �a -�
At the same time, the vast majority of cable properties continued to
remain small, independently operated enterprises. These systems
I
were often technologically outmoded, and did not utilize the
sophisticated marketing and customer service techniques that had
I
been developed by the large MSO's for their urban systems.
As a result of these historic trends, a new entrepreneurial
opportunity beckoned. Because of the emphasis by the major MSO's
on rapid growth and large urban systems, many smaller cable
I
properties were being ignored by the marketplace.
Triax began by commiting to the strategy of franchising and
acquiring a number of small adjacent cable properties . Triax
centralized operations, and implemented modern management
I
techniques and reporting criteria. These networks of small cable
franchises now operate at similar levels of performance and
I
profitability as larger cable franchises.
In essence, Triax found a niche in the cable business that was both too I
small and specialized for the large MSO's to exploit, and too
demanding of the limited resources of small, independent cable
I
operators to duplicate.
Beginning with the acquisition, construction and integration of a I
network of new cable franchises in rural and suburban areas of
northern Ohio, Indiana and Michigan, Triax has successfully
I
I applied its innovative formula.
I
471,1 - ----:'
I
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* V , -, MILE 4. . „..,%, •, :_ .
. . ., •
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- I
1
lirStatistics and Service Area Map
IN Ml WON$
20 -
I GROSS
,
REVENUE
18 - 17.521.381
-,-'
I The charts located on this page reflect 16 -
Triax's steady growth in gross revenues,
....-,
I 14
homes passed, and subscribers. ,..
12.159.031
..-#..
.f
12 -
I 10 - - -,4 ..4.'....t
' ID
8 -
6.001
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opposite page: "1988 Service Area Map II
6 -
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2
1.904.338 F. '- 4„4„ '-
- . , -4-... —
530.869 ,,i 4.. 1---tzi if.gi
,
0 24.953
1982 1983 1984 1985 1986 1987 31c.r.48,
YEAR
I
IN INOUSAND3
I IN THOUSANDS
TOTAL
. 107 73
106.952 3
.-
. , 70 TOTAL
HOMES SUBSCRIBERS
i
60 839
IC° ' PASSED ;
60
• 93 .
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•
,
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59.472 -,. I •
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31.367 I '.
30 -
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40 .
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35 • . ,f`-' ■-4-..z ■.'`"--i,,,4. r-•„,_t..--: .„, $4,_
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I 25 .
a) . 23274 ' -S411 ,'.:, /". -...-rftNik....e.:,,,,f,k.
_, .4.4
-VPk ''- - 4)17-"2.-: r1;,-ti*- 18.510
.1i,
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10 . -.r "T.:"--.'4 il,.. •...;..y.,„,;.....4.r _
..,„.. '
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1 145 / . .., 7-.,,,y,,,,,,-,.e.,.:;:., . ,•.4,, -ir.."-,.. "- :.,?,. 705 4.747 ,41.0.,' 4...;:i-v.ii,v4 44-,-.: - -...4,-.)„,
• 0, ' 0 -
1982 1983 1984 1985 1986 1987 1988 1982 1983 1984 1985 1966 1987 1988
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S.,82..
I YEAR YIAlt
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•Flag sun
ARIZONA
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• I
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11I
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O
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d
MINNESOTA e''0* 4
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2
it
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A Z
1�J 4 '3 i WISCONSIN Y••
S••
. S MICHIGAN
I
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1 ego•Cadar R�d •)•• Kuamazoo Q`\`
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•Oes Manes **
• • oat—,.1 A •cm�ago
41*I IOWA'••• • •`'�""" •saum El is
R _ ,4 ' 1 • $
f OZ OHIO
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�� y� INDIANA
_V�t 4!f 4Champaign
spnngl.a�d •C WUmpq
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IMISSOURI
I
TRIA K I
1 ? U COCORPORA SON S
I
1 LEGEND
1
TRIAX ASSOCIATES I, L.P • DOWDEN CABLE PARTNERS L.P.
it TRIAX ASSOCIATES II :: VANTAGE CABLE, INC.
_4
I
TRIAX ASSOCIATES IV, L.P. (NEW)
TRIAX COMMUNICATIONS CORPORATION COPYRIGHT 3/e/88
I
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4 F i .nom t �s+;?4:r n ,fZ li t i / Iy
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4.
I "The primary emphasis throughout the Triax organization is to achieve and r-
maintain excellent picture quality. Our service call ratio is consistently
maintained at better than acceptable industry levels. We believe very
strongly that the major benefit to subscribers of a cable system is a crisp, clear
I picture at all times, supported by a commitment to customer service. Add to
this a wide variety of programming, and the essential nature and function of
a cable television system is achieved."
JAMES DeSORRENTO
Chairman of the Board;
Triax Communications Corporation
.
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RT IA\X .
_ C
_ C OMMUNICATIONS
CORPORATION
1000= HART- ROAD- BARRINGTON ILLINOIS 60010
- (312) 3826801' TELECOPIER: (312) 382-6163
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F TRIAX COMMUNICATIONS CORI'ORATIO,N COPYRIGHT 3/1/88
a
sue% j:
I , , Dowden
f
C Communications
I
1 February 26, 1988
I
Mr. Don Ashworth
I City Mayor
City of Chanhassen
Chanhassen, Minnesota
IVia Federal Express
1 Dear Mr. Ashworth:
1 This letter will confirm our telephone conversation of today.
Dowden Cable Partners, L.P. has signed a purchase and sale
agreement for the assets of Dowden Cable Systems with Triax
I Midwest Associates, L.P. including the cable television system
serving Chanhassen.
Pursuant to our franchise dated April 2, 1984 we are
I obligated to offer the city an opportunity to purchase the system.
Assuming there is no interest on the part of the city to purchase
the system, we would like to exercise our right to request that
Ithe formal transfer process begin.
Triax Midwest has agreed to purchase 100% of the assets of
Dowden Cable Partners, L.P. free and clear of all liens,
I liabilities and encumbrances for $91. 5 million dollars. A full
package of information detailing the terms of the sale is being
submitted to your city by John Byrnes, attorney for the seller.
IIt is my understanding that Triax Midwest will continue to
operate the system in the same professional manner as has Dowden
I and no changes in local management or technical staff is
contemplated.
1 •
Rr:C.3.:v .)
1
FEB 2 6 1988
iCITY OF CHANIHNSSLir
Dowden Communications Investors, 3333 Peachtree Road-East Tower,Suite 1400,Atlanta,Georgia 30326(404)233-6960
-::
Mr. Don Ashworth
Page #2
Mr Jim Vaughn, Opeations Manager of Triax will provide you with
his company's resume and plans for operating the system in
Chanhassen. Dowden and Triax Management are prepared to answer
your questions and attend meetings necessary to expedite the
transfer process.
A closing date of May 30, 1988 is projected. Should you have any
questions please feel free to call me. We have enjoyed our
relationship with the city of Chanhassen over the years.
1
DOWDEN CABLE PARTNERS L.P.
By Dowden CommunicationS Investors, L.P.
By TCD Corp.
By: M. Kent Sharp, ice President
CC: Mary Smith
Jim Vaughn
John T. Byrnes
•
•
I
I
1
1