System/Policy
Minnesota net endows itself with sale of mail-order firm
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With the $120-million sale of for-profit sister company Rivertown Trading to Dayton Hudson, Minnesota Public Radio (MPR) gains a secure subsidy while ridding itself of a longtime public relations problem. The Minnesota Communications Group–parent of MPR and the for-profit Greenspring Co.–announced March 23 it was selling the catalog business to the Minneapolis-based retail giant, parent of department store chains including Target and Marshall Field. MPR and Greenspring President Bill Kling and two other top execs share the bulk of $7.3 million in payouts under a plan previously laid down by their boards of directors. But the big beneficiary is MPR, which gets about $90 million of the net proceeds to add to its existing $19 million endowment fund, giving it by far the largest endowment in public radio. The endowment should give MPR annual income equal to the average $4-million-a-year contribution Rivertown made to the network over the last 10 years of its existence.