1. Assign competitive teams to cover each area of the city. Cover those areas as if each were small towns (which, in a way, they are.) Find positive stories and human interest stories and print them, not just crime reports. Include pictures. People will start to buy a paper if they recognize their neighbors in it, or if their kids get a mention for their participation in Community Service or sports or something.
2. Make a true, concerted effort to make your reporting impartial. Political viewpoints should go to the editorial and op ed pages.
3. Find a non-partisan cause to support...cleaing up litter, Boys and Girls Clubs, tree-planting, etc. and get the community involved. Devote your efforts to this cause instead of constant snarky comments about Republicans.
4. Require all reporters to spend 2 weeks each year riding with a cop, working construction, following a small businessman around, etc. They need a dose of the real world. Better yet...require all reporters to take their vacations in small Midwestern towns. In the winter.
Their editorializing of the war in Iraq alone just proves they may not be able to turn things around. How does a newspaper become fair and balanced when everything they stand for is antiwar and anti American? If they really believe a lie is the truth, there's no way they can become fair or balanced.
.... Assign competitive teams to cover each area of the city.....
You should apply for the consultant's job. Your insight should be worth $$$$