Mayor Daley and Alderman Bernard L. Stone at a recent City Council meeting introduced an ordinance to fund CAN TV that will help close the funding gap caused by the failure of cable competition in the City of Chicago.
The ordinance calls for CAN TV to receive 5% of the cable franchise fee that is currently paid by cable companies to the City. Funds generated from the franchise fee will help bridge the funding gap caused by the loss of cable funding from RCN in three out of four of its cable areas.
The ordinance has been referred to the Finance Committee and is expected to be voted on at the Nov. 3 City Council meeting. Once passed, the ordinance goes into effect Jan. 1, 2005.
RCN is conducting settlement talks with the city but has not met with CAN TV since last May. At present, RCN owes $1.275 million to CAN TV and has payment obligations going forward, should it retain any of its franchise areas.