BB ‘BRICKS AND MORTAR’ UP FOR SALE, BUT IS MORE TO SOON BE UP FOR GRABS THERE? DIGITAL FIRST PARENT IS SELLING OFF … IS ‘THE NEXT FOOT’ ABOUT TO DROP?
By DAN VALENTI
PLANET VALENTI News and Commentary
(FORTRESS OF SOLITUDE, MONDAY, AUG. 25, 2014) — Last week, THE PLANET did the Oklahoma thing and jumped the gun in our story on the “sale of The Boring Broadsheet.” As other readers later noted, The Berkshire Eagle‘s parent company has put the bricks and mortar up for grabs but not the newspaper itself. That is both technically and non-technically correct.
Jumped the gun? We did … and we didn’t.
Kevin Moran, the Eagle‘s executive editor, corrected us in our reporting that the paper itself was for sale, which we appreciated. What we didn’t say in our coverage at the time, however, because we didn’t have the rest of the story, is both the trending of news out of Digital First, The Eagle‘s parent, and an account of an interview THE PLANET did with a former employee of Digital First’s electronic newsroom in New York City, which the company basically gutted several months ago, putting about 100 journalists out of work.
Our source, call him “James Olsen,” says the move to sell off 51 properties, was partly the brainchild of new CFO Michael Koren, who officially replaced Barbara Bennett as Digital First’s chief of finance earlier this summer. Olsen said Koren — with direction and input from Steve Rossi, Digital’s president and COO; Jeff Bairstow, president of Digital subsidiary Medianews; and Dave Butler, Digital executive editor — agreed on the “bricks-and-mortar selloff” of newspaper buildings “as the next step” in a process to include the “likely sale” of the newspapers themselves.
What do they say about “too many cooks?”
Does this include The Eagle? Which papers would be sold and when? That, Olsen said, is a closely guarded secret held by those on the inside, evidently referring to the Rossi-Bairstow-Koren-Butler five.
Olsen also said there was another option beside more layoffs at a particular property and putting a property up for sale. That would be to fold certain properties entirely. He said he believed “internal audits” are under way or soon would be at the company’s newspapers to determine which ones will stay open, which ones will be sold, and which one would be closed. Employees at those properties probably would not know of the up-close scrutiny— Digital First likes to play things close to the vest. What’s the timetable for all this? Who knows?
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‘Thunderdome’ Wasn’t a Failed James Bond Movie but a Failed Newsroom Initiative
Olsen worked at “Operation Thunderdome,” Digital First’s ridiculously named in-house news network for more than 100 of its newspapers. Thunderdome flopped “on all platforms,” Olsen said in a mock reference to the company’s boast that the network would give local newsrooms “the wire service [they] wish they had … on all platforms.” In April, Digital First pulled the plug on Thunderdome. Digital First newsrooms, including The Eagle, have been laying off employees ever since.
Olsen said the failure of Thunderdome, the subsequent layoffs, and now the sale of 51 newspaper buildings have Digital employees across the country nervous about “the next foot coming down.” If and when it does, Olsen said, it will be “a heavy one” — newspapers either for sale or to simply close for their value as a tax write-off.
Olsen he didn’t have specifics on Digital First’s plans for The Eagle. In the newspaper industry, the anxiety of how to meet the challenge of The Internet has become a full-blown panic. One result is that mere profitability is no longer enough to guarantee a newspaper’s long-term viability. The profits must be extraordinary, which is to say, able to meet those produced by comparable on-line investment, though obviously not those anything like Thunderdome? But like what, then? The person who can answer that will have turned lead into gold.
It’s a challenge more and more newspapers are failing to meet. Is The Eagle one of them? Time will tell. It might be a good idea, though, to polish up the resumes.
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As a public service and to give readers full inside access, here is the coverage of the 51 buildings being put up for sale by Digital First. Coverage is from The Poynter Institute for Media Studies. Make of it what you will:
Digital First puts 51 newspaper buildings on the market
by Andrew BeaujonPublished Aug. 19, 2014 2:53 pmUpdated Aug. 19, 2014 5:53 pm
Digital First Media has listed 51 newspaper buildings for sale, according to a press release from the real estate firm Twenty Lake Holdings.
The properties are “for sale across seven states including California, Connecticut, Colorado and Pennsylvania, to name a few,” Twenty Lake Holdings says in its release.
The planned sale “enables us to streamline our real estate portfolio through a comprehensive program encompassing property sales, new leasing, relocations and consolidation, thereby freeing the company from the constraints of being overburdened with underutilized properties,” DFM President and COO Steve Rossi says in the release.
With the addition of the DFM properties, Twenty Lakes and the broker Praxis Commercial have 70 newspaper buildings for sale in total, the release says.
Reached by email, DFM CEO John Paton said the listings represent “the remainder of our real estate holdings not yet sold. As you know, this is entirely consistent with our Digital First strategy of focusing on our core competencies of content and sales,” he wrote.
Here’s a list of properties for sale, via Twenty Lake Holdings’ PR firm:
| Newspaper | City | State | Property type |
| East County Times | Antioch | CA | Office |
| Concord Printing Plant | Concord | CA | Print Site & Flex Building |
| Valley Times | Pleasanton | CA | Office |
| Contra Costa Times* | Walnut Creek | CA | Flex |
| Inland Valley Daily | Montclair | CA | Warehouse |
| Red Lands Daily Facts | Redlands | CA | Flex |
| The Sun Office | San Bern | CA | Office |
| The Sun Plant | San Bern | CA | Plant |
| San Gabriel Valley Tribune | West Covina | CA | Flex |
| Inland Valley Daily | Ontario | CA | Flex |
| Times Standard | Eureka | CA | Print Site |
| Red Bluff Daily News | Red Bluff | CA | Office |
| Times Herald | Vallejo | CA | Office |
| Advocate-News | Fort Bragg | CA | Office |
| Ukiah Daily Journal | Ukiah | CA | Office |
| Enterprise Record | Chico | CA | Print Site |
| Lake County Record | Lakeport | CA | Print Site |
| Paradise Post | Paradise | CA | Print Site |
| Vacaville Reporter | Vacaville | CA | Print Site |
| Daily News | Alamogordo | NM | Office |
| The Deming Headlight | Deming | NM | Office |
| Farmington Daily Times | Farmington | NM | Plant, Office, Retail |
| Ruidoso News | Ruidoso | NM | Small Site |
| York News Paper Agency | York | PA | Print Site |
| Sun News | Las Cruces | NM | Small Site |
| El Paso Times Plant | El Paso | TX | Print Site (Office & Land sold to City for Stadium in 2013) |
| Lebanon Daily News | Lebanon | PA | Flex |
| York Dispatch | York | PA | Office |
| Public Opinion | Chambersburg | PA | Flex |
| Bennington Banner | Bennington | VT | Office |
| Berkshire Eagle Clock Tower | Pittsfield | MA | Office & Land |
| New England News | Bennington | VT | Land |
| The Manchester Journal | Manchester | VT | Office |
| Brattleboro Reformer | Brattleboro | VT | Print Site |
| Akron News Reporter | Akron | CO | Office |
| Fort Morgan Times | Ft Morgan | CO | Office |
| Brush News Tribune | Brush | CO | Office |
| The Burlington Records | Burlington | CO | Flex |
| The Daily Record | Canon City | CO | Flex |
| Julesburg Advocate | Julesburg | CO | Office |
| Lamar Ledger | Lamar | CO | Office |
| Daily Times | Longmont | CO | Flex |
| Sterling Journal Advocate | Sterling | CO | Flex |
| Breckenridge American | Breckenridge | TX | Flex |
| Star Group Papers | Burleson | TX | Office |
| Graham Leader | Graham | TX | Office, Print Site, Residence, Tower |
| Jacksboro Gazette | Jacksboro | TX | Office |
| The Olney Enterprise | Olney | TX | Print Site |
| Sentinel & Enterprise News | Fitchburg | MA | Flex |
| MediaNews Printing | Devens | MA | Print Site |
| Pioneer Press Plant | St. Paul | MN | Plant & Office |
| KTVA Broadcast | Fairbanks | AK | Land |
Here’s the release:
TWENTY LAKE HOLDINGS BRINGS TO MARKET 51 NEW PROPERTIES
FOR DIGITAL FIRST MEDIAResponsible for Newspaper Company’s Real Estate Program and Strategy
with Praxis CommercialNEW YORK– AUGUST 19, 2014 – Twenty Lake Holdings, whose principals have been responsible for the real estate program and strategy for companies affiliated with MediaNews Group, d/b/a Digital First Media since 2011, today announced with its broker Praxis Commercial the listing of 51 new properties for sale across seven states including California, Connecticut, Colorado and Pennsylvania, to name a few.
Digital First Media, headquartered in Denver, is the second largest newspaper company in the country by daily circulation and reaches more than 67 million Americans monthly across 18 states.
“The strategy outlined by Twenty Lake Holdings and Praxis Commercial enables us to streamline our real estate portfolio through a comprehensive program encompassing property sales, new leasing, relocations and consolidation, thereby freeing the company from the constraints of being overburdened with underutilized properties,” stated Steve Rossi, President & Chief Operating Officer of Digital First Media.
“Since 2012, Twenty Lake Holdings and Praxis Commercial have facilitated the sale of 67 properties, generating significant capital for other Digital First Media business needs,” stated Joseph M. Miller, of Twenty Lake Holdings. “With these listings, the companies have 70 newspaper buildings for sale with $85 million in combined value.”
For example, the combined advisory team recently handcrafted a disposition strategy in San Jose, Calif. for the 36-acre San Jose Mercury News headquarters and printing plant, resulting in a $30.5 million sale. This allowed the paper to further consolidate operations and scout a new home in Silicon Valley, which it recently secured in downtown San Jose at Legacy Civic Towers.
“The new addition of properties for sale brings the total square footage on the market to 1.7 million square feet covering all property types including office, flex and production sites,” stated Nathanael Pennington, President of Praxis Commercial, “From California to New England, the wide ranging launch is expected to bring significant benefits to Digital First Media.”
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“Now do you love me, now that I can dance.” — Various artists, best by The Contours, lead vocals by Billy Gordon, (1962)
“OPEN THE WINDOW, AUNT MILLIE.”
LOVE TO ALL.
I’ll give a more thought-out response in a bit, but I have been in publishing for over 30 years now, and have been through the transition to, and upheaval around web versus print. I have helped several publications make a successful transition, and have seen others struggle. What newspapers are missing, and what Digital First is missing more than most publishers, is the fact that they do HAVE a captive local audience that is still somewhat loyal. Rather than seek ways to get involved in search and social media and nationally targeted email blasts they should focus on serving and growing their local audience which still NEEDS them. Nothing has yet replaced local newspapers. They have only themselves to blame for their meteoric fall from relevance. If they delivered relevant, comprehensive local coverage, invested some of the savings from the legacy print operation (which is indeed hard to walk away from, especially if you own the machinery like the Eagle does) into the content side and kept the audience interested…they’d still have a revenue stream. Not brain surgery, just a challenge.
I’d be interested to know the names of the newspapers you have helped make a successful transition from print to web. It can’t be from strictly ad revenue, I don’t believe.
Sorry Ed. I have been a magazines guy, no newspapers. And I grant you that newspapers may be a bit tougher, but my point is, most newspapers, and especially Digital First newspapers, have lost sight of their local audiences in an effort to pander to a broader online ad market. I still think if you serve your audience content they can’t get elsewhere, they will keep coming back, and you can monetize them, IF there are enough of them! by selling access to them. You just need to be clever and creative with the products you sell to access them…just banners won’t do it, but I believe you could do amazing local targeting that would be relevant to readers and effective for advertisers.
I agree that local is the key. Always was, but so far it no one has been able to sustain a fully stocked newsroom with just the revenue from the web. This after 20 years of trying.
But I’m not sure they’ve really tried. I’m not totally immersed in the newspaper models as I am in magazines, but from what I’ve seen, the first thing many papers did, and have continued to do, is cut the newsroom, especially the investigative teams which tend to be most expensive to maintain because they are longer term. They then back fill with wire service stuff, or in the DFM case! more regionally generated stuff. The Eagle online is full of stories from Lowell and Arlington, and Rutland and other places where there are other DFM properties. Bring back the gumshoe journalists, give them free rein to write what they think is fascinating, rebuild a trusting relationship with readers and you may reverse the readership decline trend
Newspapers are becoming dinosaurs. Young people never go to the paper. Like MrG says I think the only chance for a local paper to grow is to deliver content readership wants, like the content DV provides for example.
Up until the Millers sold the Berkshire Eagle I was a lifelong subscriber.
I’ve had people calling to ask me to subscribe. My Cat won’t even use the box if I line it with what they are peddling as news now.
For the MSM journalism is kaput. The “news” is a SPIN of the corporate masters.
How do you think we got Barry Sotero? TWICE! Happy with that hopey changy thing? Happy with open borders? Happy with erosion of civil liberties? Happy being “tolerant” with those who profess to be a “religion” of peace? Happy with violence and crime in our cities and the solution is to further restrict our rights? Happy corporations have more rights than citizens? Happy with emminet domain? Happy with wars for corporate interest? Happy with forced healthcare? Happy with bloated federal government?
Thank the MSM!!!
God help America, MSM and Con-regress won’t.
I don’t know from Oklahoma. I thought jumping the gun was a Mother Superior thing.
“Jumping the gun” was a phrase used for cheaters who left early before the official start of the Oklahoma land rush 4/22/1889. They were called “sooners” bec/ they left too soon. Now the term “Sooners” is an accepted nickname.
bang, bang, shoot, shoot
Another Saturday Night…..
Police officers responded to a report of shots fired at about 1:47 a.m. on Richmond Avenue near Briggs Avenue, according to Pittsfield Police Capt. John Mullin.
Free Ranging is TEs’s form of chicanery!
Dan: I was watching a show on CSPAN at noon, today. The program had to do journalism and newspapers, etc., etc., etc. What I got out of the program was the “HOT” thing for local newspapers is “Local Investigative journalism”. I thought that you would be interested. Check it out if you have a chance. Sorry I didn’t get the full title of the show.
Planet will have to do some investigation to find out what you’re talking about?
PITTSFIELD — City Veterans Officer Rosanne Frieri has been fired by Mayor Daniel L. Bianchi, according to her attorney, who said that details concerning her pension or any severance agreement have yet to be discussed.
Albert J. Cimini, of Pittsfield, also termed the firing “wrongful and actionable,” and said he and Frieri are considering a lawsuit.
Cimini also said he will attempt this week to meet with city Personnel Department officials about the status of any benefits due Frieri, who was suspended on Aug. 5 without pay after failing to attend a meeting with Bianchi to discuss her job performance.
Frieri has said she would not attend a meeting without an attorney or independent third party because of what she termed “badgering” by the mayor during a meeting in his office in March. She said there had been a series of disagreements in recent months with the mayor and other officials at City Hall over aspects of the operation of her department.
In a letter Cimini said was sent to Frieri and dated Aug. 5, titled “First Written Warning,” the mayor cited among reasons that the department head had failed to prepare a fiscal 2015 budget for the office, was late for work without giving proper notification, and did not follow a directive to attend a July 15 City Council meeting to speak about deficits in the fiscal 2014 veterans office budget.
City officials could not be reached immediately Monday for comment.
This article will be updated.
To reach Jim Therrien:
That chickens–t mayor we have “could not be reached for comment.” What a loser. Get him outta there. Were with you Ro and Mr. Cimini. Hit him and hit him hard.
Dear Mr. Mrs. Ms. or Miss GEE Whiz,
If you live in Pittsfield, when you advocate hitting “him” and hitting “him” hard, the “him” to whom you refer might actually be “us”, the taxpayers. And have you had any dealings with Ms. Frieri that you can share? I have. She was hired to photograph my daughters wedding and was very nice. She was not as nice when I dealt with her as a veterans’ agent. Not nice at all and not very knowledgeable.
The him I refer to is the mayor. I have had dealing with Ro Frieri and they were good ones.
As a veteran? If so, why don’t you have the courage to identify yourself?
Thanks for the info Bill S….
http://www.c-span.org/video/?320077-1/discussion-future-news
A picture speaks a thousand words, Ed.
No comprende, Pussy. Finally. Someone using their real name.
I am very disappointed by the firing of Rosanne Frieri as Pittsfield’s Veterans Director. Non-Veteran Jack Downing and the other Good Old Boys behind Mayor Dan Bianchi’s decision must be wringing their hands over this. Shame on you, Dan Bianchi! You have demonstrated, once again, just how much Pittsfield politics SUCKS!
– Jonathan Melle
NEWS ARTICLE:
“Pittsfield Veterans Officer Rosanne Frieri’s firing by Mayor Dan Bianchi confirmed”
By Jim Therrien, Berkshire Eagle, August 25, 2014
PITTSFIELD — City Veterans Officer Rosanne Frieri has been fired by Mayor Daniel L. Bianchi, according to her attorney, who said that details concerning her pension or any severance agreement have yet to be discussed.
Albert J. Cimini, of Pittsfield, also termed the firing “wrongful and actionable,” and said he and Rosanne Frieri are considering a lawsuit.
Al Cimini also said he will attempt this week to meet with city Personnel Department officials about the status of any benefits due Rosanne Frieri, who was suspended on August 5 without pay after failing to attend a meeting with Dan Bianchi to discuss her job performance.
Rosanne Frieri has said she would not attend a meeting without an attorney or independent third party because of what she termed “badgering” by the mayor during a meeting in his office in March. She said there had been a series of disagreements in recent months with the mayor and other officials at City Hall over aspects of the operation of her department.
In a letter Cimini said was sent to Rosanne Frieri and dated August 5, titled “First Written Warning,” the mayor cited among reasons that the department head had failed to prepare a fiscal 2015 budget for the office, was late for work without giving proper notification, and did not follow a directive to attend a July 15 City Council meeting to speak about deficits in the fiscal 2014 veterans office budget.
City officials could not be reached immediately Monday for comment.
This article will be updated.
To reach Jim Therrien: jtherrien@berkshireeagle.com, or (413) 496-6247.
On Twitter: @BE_therrien
Nice Ed, very clever also!
Why was it acceptable for Ms.Frieri to publicly advertise on local billboards that her private photographic business did photo work for veterans who were honored on the billboards as part of the
” Welcome Home ” campaign ? Seems like double dipping to get
free advertising at the very least for work honoring local service men and women when she in fact was the administrator running the ” Welcome Home ” campaign in the first place. Perhaps she
didn’t consider the free advertising to be in bad taste..