FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C. 20554
                                May 4, 1998
                                                            In Reply Refer to:      
                                                                    1800B3-MFW

Mr. Eric Redd
724 East Bay Street
East Tawas, MI  48730

Christopher D. Imlay, Esq.
Booth, Freret, Imlay, & Tepper, P.C.
Suite 204 
1223 20th Street, N.W.
Washington, D.C.  20036-2304

                                             In re:         NEW Commercial FM Translator, East
                                                       Tawas, Michigan
                                                    Eric Redd
                                                    BPFT-970224TD

Gentlemen:

       This letter refers to: (1) the captioned application of Eric Redd ("Redd") for a new
commercial FM translator on Channel 248 (97.5 MHz) in East Tawas, Michigan; and (2) the
May 1, 1997 petition to deny that application, filed on behalf of Carroll Enterprises, Inc.
("Carroll"), licensee of stations WIOS(AM) and WKJC(FM) in Tawas City, Michigan.
(Footnote 1).   For the reasons set forth below, we will grant Carroll's petition in part and
dismiss Redd's application.

       Redd's translator proposes to rebroadcast station WBMI(FM), West Branch, Michigan;
it will be located beyond WBMI(FM)'s primary coverage (60 dBu) contour.  Carroll notes
that the proposed translator violates 47 C.F.R. §74.1232(d) (Footnote 2) because Redd
has an impermissible business relationship with the owner of WBMI(FM).  Specifically,
Carroll states that: (1) Redd's retail carpet sale business, Judd's Carpeting, buys advertising
time on WBMI(FM); and (2) Redd's proposed transmitter location is atop a building at 130
Newman Street, East Tawas, which is leased by Ives Broadcasting, Inc., WBMI(FM)'s
licensee, for use in operation of its other station, WHST(FM) in Tawas City.  (Footnote 3).

       Discussion.  In MM Docket No. 88-140 (Footnote 4), the Commission
tightened and/or clarified several technical and operational requirements for FM translator
stations after affirming that the proper role for that service was to supplement the service
provided by full-service FM radio broadcast stations.  The amended regulations prohibit the
licensee of a commercial FM station, or any entity "interested or connected with" the licensee
of such a primary station, from owning an FM translator if the translator's coverage area
extends beyond the primary station's coverage contour.  "Interested or connected" parties
include group owners, corporate parents, shareholders, officers, directors, employees, general
and limited partners, family members, and business associates.  See 47 C.F.R.
§74.1232(d).  Because of the potential for abuse, the Commission intended for this
restriction to be read very broadly.  Report and Order in MM Docket No. 88-140, 5
FCC Rcd at 7244, note 25 (1990).  The underlying rationale for this prohibition has been to
prevent FM station licensees from using FM translators as a competitive means for extending
their stations' service areas.  Id., at 7213.

       We conclude that the facts presented in this case violate the commercial FM translator
ownership restrictions contained in Section 74.1232(d). (Footnote 5).   As noted, the
Commission will not issue a commercial FM translator authorization to any person or entity
having "any interest whatsoever [in] or any connection with" a primary FM station. 
Redd has evidenced several  business connections with Ives' -- buying advertising  on the
primary station and leasing transmitter site from the primary station's owner -- that we believe
are the types of relationships that the Commission anticipated and forbade in MM Docket No.
88-140. (Footnote 6).

       Accordingly, in light of the above discussion, the petition to deny filed by Carroll
Broadcasting, Inc. IS GRANTED to the extent indicated above, and the application (File No.
BPFT-970224TD) of Eric Redd for a new FM translator station on Channel 248 in East
Tawas, Michigan, IS DISMISSED.

       
                                                    Sincerely,


                                                    Linda Blair, Chief
                                                    Audio Services Division
                                                    Mass Media Bureau


__________________________________________

Footnote 1:  Redd filed an opposition to the petition on May 13, 1997, to which
Carroll replied on May 29, 1997.   

Footnote 2:  Section 74.1232(d) indicates that an authorization for a commercial FM
translator station whose coverage contour extends beyond the protected contour of the primary
station to be rebroadcast by that translator will not be granted to the licensee or permittee of
the primary station or to any person or entity having any interest in or connection with such
primary station.   Similarly, Section 74.1232(e) prohibits such "other area" commercial FM
translators from receiving support, directly or indirectly, from the primary station or any
person or entity having any interest in or connection with the primary station.

Footnote 3:  Redd does not deny these contentions.  Rather, he admits that he does
buy advertising on WBMI(FM), as he "is trying to expand [his] business into West Branch,"
although he believes that he pays the station's regular advertising rates and receives no special
discount or consideration from the station.  Additionally, Redd notes that the WHST(FM)
studio "is a logical place for me to locate my translator," because, among other reasons,
WHST(FM) "has trained personnel at the studio site who could assist in the event of an
emergency."  Redd states that, when his facility is constructed, he will pay rent for the roof
space his facility will occupy.

Footnote 4:  Notice of Inquiry, 3 FCC Rcd 3664 (1988); Report and
Order, 5 FCC Rcd 7212 (1990); Memorandum Opinion and Order, 8 FCC Rcd
5093 (1993).

Footnote 5:  Given the facts and our finding here, we need not consider Carroll's
claim that Redd is merely a "straw person" for Ives' broadcasting interests or that he has
somehow lacked candor with the Commission in disclosing his business relationships with
Ives.

Footnote 6:  In Letter to Mr. P. Anthony Reed et al., reference 1800B2-DEB
(Chief, Audio Services Division, Mass Media Bureau, September 5, 1995), the staff approved
Mr. Reed's application for a new FM translator at Rawlins, Wyoming, notwithstanding that
Mr. Reed's employer, the Fremont Beverage Company, bought advertising time on the
primary station to be carried on Mr. Reed's translator.  There was no other nexus between
Mr. Reed and the primary station.  Here, Mr. Redd himself runs the company placing the
advertisements, and he has contracted with the primary station owner to lease space for his
translator.  The instant case therefore is distinguishable, and Reed is not controlling. 
In any event, we note that the Rawlins, Wyoming proceeding is the subject of a pending
application for review and is not yet a final decision.