No transfer or assignment of a franchise shall be approved or considered by the City Council within one year of the effective date of the initial term of a franchise.
A. 
Except as otherwise provided, no franchise granted pursuant to this chapter shall be assigned or transferred, either in whole or in part, or leased, sublet or mortgaged in any manner, nor shall title thereto, either legal or equitable, or any right interest or property therein pass to or vest in any person, either by the act of the company or by operation of law, without the consent of the City Council, which consent shall not unreasonably be withheld. The granting, giving or waiving of any one or more of such consents shall not render unnecessary any subsequent consent or consents.
B. 
The City specifically reserves the right, in determining whether or not to authorize a transfer under this section, to consider the entire price and/or consideration to be paid by any proposed transferee, including the allocation of value for the franchise as it actually or potentially affects the rates to subscribers at that time or in the future. The City may also take into account the extent to which a proposed transfer may potentially cause, require or justify, in whole or in part, a rate increase or request for rate increase. The City is specifically authorized to deny, restrict or condition its authorization of any transfer on the grounds mentioned hereinabove or on any related grounds under which the City may, at its sole option, determine.
C. 
The franchisee may pledge, mortgage, hypothecate or otherwise transfer, as may be required, an interest in the cable television system to any lender in order to obtain financing for the cable television system. Such transfer, pledge, mortgage or hypothecation may, if required by the lender, include the authority to sell the cable television system, subject to consent of the City Council, upon mortgage default by the franchisee. Such approval shall not be unreasonably withheld. In this event, any such sale approved will require the new owner to comply with all terms and conditions of this chapter as well as the original franchise agreement and franchise ordinance.
One or more sales or transfers of stock or other ownership, by operation of law or otherwise, or the creation of new stock, by which an aggregate of more than 10% of franchise stock or other form of interest shall be vested in a party or parties who are nonstockholders or nonowners as of the effective date of the franchise, shall be an "assignment" within the meaning of this Article. For the purpose of this section, stock ownership shall be determined in accordance with the principles set forth in Section 5.4-4 of the Internal Revenue Code of 1954, as the same existed on August 16, 1954.
A franchisee shall promptly notify the City Manager of any proposed change in or transfer of or acquisition by any other party or control of the franchise. For the purpose of determining whether it shall consent to such change, transfer or acquisition of control, the City may inquire into the qualifications of the prospective controlling party, and the franchisee shall assist the City in any such inquiry. In the event that the City Council adopts a resolution denying its consent and such change, transfer or acquisition of control has been effected, the City Council may cancel the franchise unless control of the franchise is restored within 30 days to its status prior to the change or to a status acceptable to the City Council. Any mortgage, pledge or lease shall be subject and subordinate to the rights of the City under this chapter or other applicable law.