Arizona Republic from Phoenix, Arizona • Page 25

Saturday July 3. I Tac Arioaa RepaMic A25 TVK owners Former Channel 3 owners revered for human touch 44 ft (dt vffy (Mil This station is a wonderful prototype of how to run a local, news-driven TV station. The smartest thing we can do is to do nothing. Jack Sanders president of a.h. belo broadcast.

group landscape that was squeezing owners of individual stations like his. Among the changes: Digital television, which will requires an investment of about $20 million per station. Channel 3 is required to convert to digital within five years. Syndicated programming, which single stations are finding harder to buy as syndicators sell to group owners. Already, Channel 3 is thought to be spending more on syndicated fare than most stations.

The growth of cable and satellite TV, both of which are draining viewers from free, over-the-air television stations. Such changes would have been too much for the station to overcome, Lewis said, even though it survived and thrived after it lost its ABC affiliation in 1994. It beefed up its local news, aggressively pursued syndicated programs and showed little, if any, drop-off in its audience since that time. It is the local ratings leader in news throughout the day except for 10 p.m., when NBC affiliate Channel 12 (KPNX) knocks it off, thanks to a strong network lineup. The strategy of programming like "a network affiliate without a network" paid off, Miller said.

It hasn't come without substantial costs, for programming and for a news operation that may be the largest in town. "The challenge for us is to demonstrate that what we provide here makes good business sense," said Phil Alvidrez, the station's vice president for news. The sale marks the end of a series of events that started when Channel 3 lost its network affiliation. In attempting to recoup from that loss, Lewis said, the company had to pour more of its resources into television programming. That detracted from its other operations, all of which have been sold in the past two years.

The company was forced to borrow $25 million to cover the costs of new programming, an expanded news operation and a move into new facilities at 5555 N. By Michael Clancy Tha Arizona Republic If Arizona could be personalized in one couple, it would be, Delbert and Jewell Lewis. Practically natives of the the couple met as children, married after World War II and spent their lives in the service of their community. The Lewises, who personified Channel 3 (K.TVK), sold the station in a $315 million deal announced Friday. It was just like them, close friends say, that they passed up a potential opportunity for more riches in order to find a buyer that would be true to their ideals and take care of their employees.

ideals were established by Jewell Lewis father, the late Ernest McFarland, who served Arizona in a variety of roles: U.S. senator, governor and state Supreme Court justice. McFarland was out of office but gearing up to run for governor when he won the license to build and operate Channel 3 in 1954. But the story begins before that, when Jewell and Del were childhood friends. met up in Florence, when McFarland was a judge in the Pinal County Superior Court and the Lewis family had just moved there after a Phoenix car-repair business failed.

It was the depths of the Great Depression. "I was best friends with his sister," Jewell recalled. "We used to do nasty things to Del, hide his books and things like that. He sure didn't like me then." It was a different story after the war. They attended the University of Arizona, starting in 1946, "and we went together practically the whole time," she said.

McFarland wouldn't let them get married until Jewell earned a master's degree. She attended George Washington University, near her family in the nation's capital. Del followed, landing a job in the area. frequently made the Washington scene representing her father, who was Senate majority leader at the time. They married in 1951 and worked on a' farm the family owned outside Florence before entering broadcasting.

"Del had a degree in civil engineering," Jewell said. "He didn't want to run a farm, but now Be is a farm, boy from the heart." pTndeed, the Lewises are considered salt-of-the-earth people, a crerality that stayed with them tKreugh the years, even as they (Jecame wealthy. KXJiey never lost their commit-iient to their employees and to the Causes they have supported ijirough the years. I One of those causes was handed (jown from McFarland, who is known as the author of the G.I. Silf of Rights, which provided durational opportunities to Dldiers after World War II.

Jewell is active in support of all hrw Arizona universities. tjSIf we could get every kid in Irhmnh a collece education, we djjtrjd solve lots of our problems," iasavs. ewell herself taught scnooi ior 1. H'Kr. fj LZ.m affak fuii 1 JilT) Seventh Ave.

The money was paid back when MAC America sold half-interest in its radio stations, KESZ-FM (99.9) and KOAZ-FM (103.5), to Owens Broadcasting. Both stations eventually were resold by Owens. Also shed in the past two years were Phoenix Magazine, which was sold last November, and Desert Production Center, sold earlier this week to Great Scott Productions of Phoenix. The MAC America staff greeted the news with shock but little surprise. Such a sale had been rumored ever since the station lost its affiliation.

The rumors intensified about two weeks ago. "The biggest shock is that for so long, everybody has loved working here because of -the Lewis family," said Marty Velasco Hames, a news reporter. "It's an emotional shock. We've been 'Arizona's Family' for so long." "Arizona's Family" is one of the slogans the station and the company use. Mike Warren, who anchored Friday evening's newscasts, said Patti Kirkpatrick and Liz Habib were on vacation when the deal was announced.

"I'll have to go on the air and say their absence has nothing to. do with this," he joked. Warren said it was the first ownership change he has experienced in his 10 years in the business. "It's the end of an era," he said. The Belo Corp.

owns 20 TV stations in 16 markets, including -Tucson, as well as eight newspapers and four cable news operations. Its TV stations reach approximately 14 percent of the U.S. market. Sanders, the Belo executive, said the station will keep its current lineup for now. But Belo will bring to the company a more solid financial footing, more strength in dealing with program syndicators and a far-reaching news operation that includes a bureau in Washington, DC.

Channel 3 was established in 1 954 by Ernest McFarland, who was a U.S. senator, governor and chief justice of the Arizona Supreme Court. McFarland was Jewell Lewis' father. Delbert Lewis was 27 years old at the time. The station has remained a family business ever since.

All five Lewis children work there. "Jewell is very remorseful today," her husband said. "She could hardly stand the thought of it." Michael Clancy can be reached at (602) 444-8550 or at mike.clancypni.com via e-mail. Ruled column tahle base Florence saddle chair List hampttwi Lmd mim B.iker5 r.wk Swivel chair I iliss er.igere (2) VilLer finish table (2) Pine antique Knhird Fisher pirk square Limp taMe (4) AdeLikle recliner Pecan infold mim AIUti antiirue sofa Chez nucheOe fchird StTPentine table f.i (2) I Linovcr court end table Sterling recliner k-athcr Ren.ii.ss.ince column he.klKiril kothourd IVessmg chest Ajil cinnami! end t.iHe Palmer naditinul hutch Pahsatka conxt table f2) Basket weave harslool MiBt.uig heacioird I Vessmg chest Fkcnce anticfie tiri Roirid dniing r.ihlc M.inSe end DiHe ICTYK, JivmPuge AI until earlier this week. The sale was announced to the staff in a series of meetings Friday morning.

The sale encompasses all of MAC America's assets: Channel 3, the Internet business azfamily.com, partial interest in a cable news channel and management of Channel 61 (KASW). The deal is expected to be completed in the fourth quarter of 1999 with Federal Communications Commission approval. No immediate changes will be made to the company, said Jack Sanders, president of Belo's broadcast group. The station will continue to air Arizona Diamondbacks games, he added. Sanders said Channel 3 was attractive to Belo because of its news operation, the innovative spirit that enabled it to survive an affiliation change and the growth of the Phoenix market.

"This station is a wonderful prototype of how to run a local, news-driven TV station," he said. "The smartest thing we can do is to do Miller, the Lewises' right-hand man in the company, said, "We picked Belo because they were the most likely to leave the station alone." So convinced was the Lewis family that "we probably left some money on the table" in choosing Belo, he added. "In some ways," he said, "they want to be what we are." That's because network affiliations are not as valuable now as they once were. The expansion of cable and satellite broadcasting has eroded network viewership substantially over the past several years, and network programming has become more and more costly to produce. Belo owns 20 TV stations in 16 markets, all of thern network affiliates.

But Sanders discounted rumors that Channel 3 soon would affiliate with one of the networks, presumably CBS. He said no discussions have been held with CBS or any other network. Reaction inside the station was emotional. "Del and Jewell ran this place and treated people incredibly fairly," News Director Dennis O'Neill said. "It was just like family.

We have been through a tremendous amount together." The sale caps a five-year saga that started when ABC dropped the station as a network affiliate after almost 40 years. Del Lewis said the sale was the result of a changing television NO REASONABLE OFFER REFUSED! Just a Small Sample of Unci Mattrca (2) I kitel box spring Renaissance motle server 1 caniinu suade Kirstinil SarkLstirie end table IVessing mim Antique Grecian ivory aifa tahle Pent hack arm chair Stiwie white square table Stiie white lamp table Timherlakc round taHc Washed oak tahle Washed oik end table Natur.il dining t.illc Wheat Rirstoil hidcsh oik ilesk Oak bid talle Natural rune nidil (2) Rov.iltv sand skle chair filter kothwrd and headlxmrd Mititana dayhed Btittemulk entertainment anrnnrc IVircekfiit Natural Barrel NaturJ ami sii Id) CiLus charaml si.lc chair Lexus tr.twe arfaihair Sm rrmo dark navy chair Kids rettr.it sleeper unit White mirror Whitehtmey Tobacco finish Will recliner dolour sofa table (2) Amber dining (2) Fabric chair Rmihcr Taupe Metal and oak huh. in dimmer (5) Fabric chair (6) Cnmsm red Cherry shaker Potters llrick Srikna skle chair Taupe chair Siiniktuie end Mradnmixi arm Kimtrre cream Leather lamp Pompeii crack (JierrvcTedenai Iris siindstixie irena side chair Amrrdan Oak Saratnsi cherry Metal curio cabinet (irecian lwy Leather cst Original Marked Marked Marked At a 1998 memorial for former Gov. McFarland's daughter, and her husband, hearts during the playing of taps. 20 years, even while serving as an executive with the TV company.

Her community activities range from the Arizona Perinatal Trust, which works to ensure good care for babies before and at birth, to the Center for Developing Older Adult Resources, which provides services to help the elderly stay in their homes. She was the first Phoenix woman inducted into the Arizona Broadcasters Association Hall of Fame. She was recognized by the National Association of Women Business Owners' Phoenix chapter, which gave her its annual Angel Award in 1997. She now has an award named after her that Channel 3 will give out later this year to Dr. Dosia Carlson of Developing Older Adult Resources.

The Lewises have won numerous other awards for their community involvement. One of their most recent accomplishments was their leadership in the campaign to restore downtown Phoenix's Or-pheum Theatre by donating $700,000 of their own money. "They stepped up to the plate, not only with lead gift, but they stood behind it, putting their heart and soul into the restoration of the theater," said Joan Weil, executive director of the Orpheum Theatre Foundation. At the busiest time of the campaign, she said, Jewell Lewis offered to come down to answer phones. Former Phoenix Mayor Terry Goddard said the Lewises always got involved.

"They didn't have someone go out to make the contributions, they'd sit around the dinner table and do what they care about," he said. "They are extraordinary people. They bring an extraordinary hu be I to Final Qoseoit of All a 1 Tom TingleThe Arizona Republic Ernest McFarland, Jewell Lewis, Delbert, put their hands over their I man touch with what appears to a massive business. And that is pretty rare." Right behind them have been their five children, Kara, Bill, John, Leah and Del with whom they shared the naming of the Orpheum 's auditorium. Jewell looked back on it all Friday with pride and what she calls a "bittersweet" feeling.

"When I was quite ill a few years ago (in 1993), I realized that almost died, and I thanked the Lord I got another chance," she said. "It made me know that I had work harder for the things I really believe in. "I haven't finished my job yet." Back at the station, general manager Bill Miller lamented the passage of an era. "It will never be the same," he said. "Del and Jewell are very special.

They are the best people I've ever known. "They are one of Phoenix's greatest assets'." Reporter Laura Trujillo contributed to this article. Limp taHc end liihlc tcfi Chestnut Kfliare Limp tNe TimhcrLikc cntcrminment center l.iWW box on suind 1 imherl.ikc arm chair SnKike green arm crtiir Pine Quit Pr.urie green arm cfuir Crinmm ml lc ckiir M.iln jny desk chair RIik 30" H.xJ Parchment nrmoire 1 ltncrin side chair Game t.JJe LikeUiinc square taMe IV.hs ptmi htse Otmian Utiit metal end tahle ljjjhl metal i talile lWillnnw screen (2) Green chair (2) ftiskct weave cudilnv Misty Hue Rmkct cheM Pine desk chair Cherry desk M.ihdKany desk chair Sume terrace marNc Chestnut lump hne Free Kccnwks iJU AV rr8S0rVWKn 4r anvrurcn Thomasville Wing-Backed Recliners Price .71,025 Otllv Down to a Down to Down to 3389: Our Clearance Inventory aa a I I in HUiiimrLiibf afkaac: I'lTVtiHiTTJTT tMIMifijUliil'llH ACJt-J I Milill III lil Palmer tradithml dresser mirn Palmer Vertical mirror I1)) Fabric chain Cilana white square lamp table Atrium sofa table GJmi.il curio Saratoga cherry comer unit (4) dub chairs Adelaide manilla sofa Sunburst cafe aat-c bench (2) Andromeda si fa Cherry Literal file GLw shelves book shelf Napa valley audio unit Terrace garilcn stai headboard Earth Anthiuc gokl talJc Painted ice box armoir Oittagc iik wixxkn shelf Hutch with liidit Manna iik dresser Oviaigr wmch chair Natural pine coLsolc (2) Hisket weave timanvo ale chiiir Stux- terr.Ke kit Kml (2) Oil sak-m chair skle Grand tourdreer Hack aim chair tangcr skle chair oak wmlen slielf chest mim table chair table chair skle chair heailhnrd Settee table clu.ir hirtool table mils r.i chest base piLisier i raHe chair I IL mm I Superstition Ffwy. ARIZONA Is lii I II II HOfrlE FURNISHINGS Bring Your Pick-Up Truck -'rantc ccnter Plww "llV-M Ph AliwrcJ lhin 7 4 fmUt ft 4tt.