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.
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.