Rhode Island AG Approves Sale of WRNI

Rhode Island Attorney General Patrick C. Lynch announced Friday, September 26, that he has approved, with some conditions, the sale of radio station WRNI by the Trustees of Boston University and the WRNI Foundation to the nonprofit corporation Rhode Island Public Radio, the successor to the Foundation for Ocean State Public Radio. The agreement will give WRNI, Rhode Island’s first National Public Radio news station, administrative and financial independence from Boston University and the WBUR Group.

The WNRI Foundation and BU agreed to sell the license, the tangible property, the contracts, the station records, and the real property to Rhode Island Public Radio for $2 million, a purchase price significantly below WRNI’s appraised value.

“Finally, the local community will be setting the goals and aspirations for their indispensable public radio station,” says Joe O’Connor, who has been general manager of WRNI for two years. He says the station plans to purchase the 1290 AM signal from Boston University, hire more local reporters, and increase the quantity of local stories and segments that mirror the quality of NPR, the mainstay of WRNI’s program schedule.

The Rhode Island attorney general’s office undertook its review of the then-proposed sale in 2007 pursuant to the requirements of the Public Radio Conversions Act, as well as to the office’s civil law responsibilities to preserve and protect charitable assets in Rhode Island.

“The law says that we must find that the sale constitutes a community benefit, or else we shouldn’t approve it,” Lynch says. “Although on a common-sense level I’ve always known and appreciated WRNI’s many benefits to Rhode Island, I’m very happy to say that after having looked into this matter exhaustively and checked all the boxes that the law requires, our answer is absolutely, ‘Yes, this is great for Rhode Island.’ ”

Based on his office’s investigation of the parties’ application, the documents produced, the statements under oath, and the public comments, Lynch says that “all documentation and evidence point to the sale as a vital factor in ensuring the success of public radio in our state.”

The sale is subject to the fulfillment of the following conditions, according to Lynch:

That WRNI Foundation receives Rhode Island Superior Court approval of a cy pres petition for the proposed sale of WRNI 1290 AM and provides notice of the cy pres petition to the Attorney General;

That Rhode Island Public Radio establishes written criteria of the qualifications for directors of the board consistent with the intent of the Public Radio Conversions Act;

That Rhode Island Public Radio provides annual and periodic training for board members concerning their fiduciary duties;

That WRNI establishes a community advisory council to provide advice to Rhode Island Public Radio about community needs and programming; and

That BU, the WRNI Foundation, and Rhode Island Public Radio fulfill all obligations subject to the reimbursement agreement with the Attorney General.

In September 2004, Lynch asked that BU halt the sale until the concerns of his office and WRNI’s major contributors were properly addressed. Lynch closed his inquiry in November 2006, citing BU’s fulfillment of its pledge to hire a full-time general manager for the Rhode Island station, to reengage with a local public radio advisory board, and to implement consistent allocation of Rhode Island charitable donations to WRNI.