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ARCHIVED -  Decision CRTC 2001-739

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Decision CRTC 2001-739

Ottawa, 30 November 2001

HDL Investments Inc.
Regina, Saskatchewan 2001-0785-6 

15 October 2001 Public Hearing
in Vancouver

Acquisition of assets of CKCK (HDL Investments Inc.)

This decision is one of four issued today that restructure the ownership of the commercial radio stations in Regina. An overview of the implications of these decisions is provided in Public Notice CRTC 2001-118 Introductory statement to Decisions CRTC 2001-738 to 2001-741: Restructuring commercial radio in Regina.

1.

The Commission approves the application for authority to acquire the assets of the radio programming undertaking CKCK Regina from Craig Broadcasting Systems Inc. (Craig), and for a broadcasting licence to continue the operation of the undertaking. The Commission notes that the applicant, HDL Investments Inc. (HDL), has been operating CKCK under the terms of a local management agreement (LMA) which will terminate with the approval of the current application.

2.

The Commission is approving this transaction on the basis that the assets of CKCK will then be sold to Rawlco Communications (Sask.) Limited (see Decision CRTC 2001-740, also issued today). This will ensure that the licensee is in compliance with the terms of the Commission's Radio Policy 1998 which indicates that a single licensee in a market the size of Regina may own a maximum of three radio stations, with a maximum of two stations in any one frequency band.

3.

The applicant indicated that, following approval of the current application, CKCK would exchange frequencies with the HDL's existing AM station CKRM. Thus, CKCK would move from frequency 620 kHz to frequency 980 kHz, while CKRM would move from frequency 980 kHz to frequency 620 kHz.

4.

Upon surrender of the current licence, the Commission will issue a licence expiring 31 August 2008. The licence will be subject to the conditions for AM stations set out in Public Notice CRTC 1999-137.

5.

The Commission notes, however, that it approved a reorganization of HDL earlier this year (Decision CRTC 2001-282 dated 22 May 2001). The reorganization was not implemented at the time of the current application. HDL indicated, however, that it would complete the reorganization prior to the closing of the CKCK transaction. As a result of the reorganization, HDL will no longer operate radio stations but will transfer them to a company to be incorporated. Consequently, the Commission will only issue the licence once it has received complete documentation concerning the ownership of the company to be incorporated.

Benefits

6.

In Decision CRTC 2001-738 also issued today, the Commission also approves an application by HDL to acquire the assets of CFWF-FM Regina from Craig. The total consideration relative to the CKCK and CFWF-FM transactions is $4,200,000. CKCK and CFWF-FM are profitable when considered on an aggregate basis. Therefore, consistent with the requirements of the benefits test outlined in Commercial Radio Policy 1998 (Public Notice CRTC 1998-41), the benefits offered represent the required minimum direct financial contribution to Canadian talent development of 6% ($252,000) of the transaction. This includes:

· 3% ($126,000) to be allocated to the new music marketing and promotion funds (Radio Starmaker Fund and Fonds RadioStar);

· 2% ($84,000) as a contribution to FACTOR; and

· 1% ($42,000) to the Saskatchewan Recording Industry Association (SRIA).

7.

These commitments are over and above CKCK and CFWF-FM's existing commitments and conditions of licence related to Canadian talent development. They are also over and above a commitment that HDL and Rawlco Communications (Sask.) Ltd. have made to allocate an additional $1.5 million for technical upgrades to the transmission and tower facilities of their Regina FM stations.

Other matters

8.

The Commission encourages the licensee to consider employment equity issues in its hiring practices and in all aspects of its management of human resources.

Related CRTC documents

. Public Notice 2001-118 - Introductory statement to Decisions CRTC 2001-738 to 2001-741: Restructuring commercial radio in Regina
. Decision 2001-738 - Acquisition of the assets of CFWF-FM (HDL Investments Inc.)
. Decision 2001-282 - Reorganization of HDL
. Public Notice 1999-137 - New licence form for commercial radio stations
. Public Notice 1998-41 - Commercial radio policy 1998

Secretary General

This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca

Date Modified: 2001-11-30