ARCHIVED -  Decision CRTC 98-195

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Decision

Ottawa, 30 June 1998

Decision CRTC 98-195

Jim Pattison Industries Ltd., on behalf of 549501 British Columbia Ltd.

Kelowna, British Columbia - 199800024 - 199800032 - 199800313

Acquisition of assets and transfer of control - approved

1. Following Notice of Public Hearing CRTC 1998-2 dated 20 March 1998, the Commission approves the applications by Jim Pattison Industries Ltd. (Jim Pattison), on behalf of 549501 British Columbia Ltd. (549501), a wholly owned subsidiary of Seacoast Communications Group Incorporated (Seacoast), for authority to acquire the assets of the radio programming undertakings CKLZ-FM and CKOV Kelowna from Seacoast, and for broadcasting licences to continue the operation of these undertakings.

2. The Commission will issue licences to 549501, expiring 31 August 2004, upon surrender of the current licences. The licences will be subject to the same conditions as those in effect under the current licences, as well as to any other condition specified in this decision and in the licences to be issued.

3. The Commission also approves the application by Jim Pattison, on behalf of 549501, for authority to transfer effective control of 549501 through the transfer of all the issued and outstanding shares held by Seacoast to Jim Pattison. This transfer will take place immediately following completion of the transaction under which 549501 will acquire the assets of CKLZ-FM and CKOV.

4. Jim Pattison will pay approximately $4 million to purchase 100 common shares of 549501 and to retain Seacoast's management services and non-competitive agreements with its employees. Based on the evidence filed with the applications, the Commission has no concerns with respect to the availability or the adequacy of the required financing.

5. The Commission notes that CKLZ-FM and CKOV combined have been unprofitable over the three years preceeding filing of these applications. In accordance with its policy, first enunciated in Public Notice CRTC 1993-68 dated 26 May 1993 and most recently reiterated in Public Notice CRTC 1998-41 dated 30 April 1998, the Commission will forego benefits requirements for these stations. Nevertheless, the Commission notes the commitments made by Jim Pattison, as part of these applications, to continue support for the community charitable event "Kid's Care" and for scholarships for two secondary school students pursuing musical education. Jim Pattison also stated that it will improve each station's on-site technical operations, as resources permit. In addition, the applicant stated that its expertise in broadcasting, as demonstrated by its successful television and radio operations in nearby Kamloops, will benefit CKLZ-FM and CKOV.

CKLZ-FM

6. It is a condition of licence that CKLZ-FM not be operated within the Specialty format as defined in Public Notice CRTC 1995-60, or as amended from time to time by the Commission.

CKOV

7. Consistent with Decisions CRTC 94-574 and 97-585, it is a condition of licence that in those periods of category 2 music consisting exclusively of music composed before 1956, the Canadian content level is not less than 2% on a weekly basis; and in those periods of category 2 music consisting of 90% or more, but not exclusively, of music composed before 1956, the Canadian content level shall be not less than 10% on a weekly basis.

CKLZ-FM and CKOV

8. The licensee is required, by condition of each licence, to make payments to third parties involved in Canadian talent development at the level identified for it in the Canadian Association of Broadcasters' (CAB) Distribution Guidelines For Canadian Talent Development, as set out in Public Notice CRTC 1995-196 or as amended from time to time and approved by the Commission, and to report the names of the third parties associated with Canadian talent development, together with the amounts paid to each, concurrently with its annual return. The payments required under this condition of licence are over and above any outstanding commitments to Canadian talent development offered as benefits in an application to acquire ownership or control of the undertakings.

9. It is a condition of licence that the licensee adhere to the guidelines on the depiction of violence in television programming set out in the CAB's Voluntary Code Regarding Violence in Television Programming, as amended from time to time and accepted by the Commission. The application of the foregoing condition of licence will be suspended as long as the licensee remains a member in good standing of the Canadian Broadcast Standards Council.

10. In view of the approval granted herein, it would appear that no further action is required on application 199708848 submitted by Seacoast for the renewal of CKLZ-FM's licence which was announced in Public Notice CRTC 1998-51 dated 19 May 1998.

This decision is to be appended to each licence.

Laura M. Talbot-Allan
Secretary General

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