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Imlay, Esq. Booth, Freret, Imlay, & Tepper, P.C. Suite 204 1223 20th Street, N.W. Washington, D.C. 200362304  S-x` `  hh@In re: hNEW Commercial FM Translator, East x` `  hh@h Tawas, Michigan x` `  hh@hEric Redd x` `  hh@hBPFT970224TD Gentlemen:   |xThis letter refers to: (1) the captioned application of Eric Redd ("Redd") for a new commercial  xFM translator on Channel 248 (97.5 MHz) in East Tawas, Michigan; and (2) the May 1, 1997 petition  xto deny that application, filed on behalf of Carroll Enterprises, Inc. ("Carroll"), licensee of stations  SF- xWIOS(AM) and WKJC(FM) in Tawas City, Michigan.'F7# yO-#X\  P6G;gP##C\  P6QgP#э#C\  P6QgP#Redd filed an opposition to the petition on May 13, 1997, to which Carroll replied on May 29, 1997.#K\  P@Q P#' For the reasons set forth below, we will grant Carroll's petition in part and dismiss Redd's application.   lxRedd's translator proposes to rebroadcast station WBMI(FM), West Branch, Michigan; it will be  xlocated beyond WBMI(FM)'s primary coverage (60 dBu) contour. Carroll notes that the proposed  S~- x[translator violates 47 C.F.R. 74.1232(d)~X7# yOv!- x#C\  P6QgP##X\  P6G;gP##C\  P6QgP#э#C\  P6QgP#Section 74.1232(d) indicates that an authorization for a commercial FM translator station whose coverage  xhcontour extends beyond the protected contour of the primary station to be rebroadcast by that translator will not be  xgranted to the licensee or permittee of the primary station or to any person or entity having any interest in or  xconnection with such primary station. Similarly, Section 74.1232(e) prohibits such "other area" commercial FM  xtranslators 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. because Redd has an impermissible business relationship with  x=the owner of WBMI(FM). Specifically, Carroll states that: (1) Redd's retail carpet sale business, Judd's  x[Carpeting, buys advertising time on WBMI(FM); and (2) Redd's proposed transmitter location is atop a  xbuilding at 130 Newman Street, East Tawas, which is leased by Ives Broadcasting, Inc., WBMI(FM)'s licensee, for use " ,**qq8""Ԍ S-in operation of its other station, WHST(FM) in Tawas City.#4 yOh- xK#C\  P6QgP##X\  P6G;gP##C\  P6QgP#э#C\  P6QgP#Redd does not deny these contentions. Rather, he admits that he does buy advertising on WBMI(FM), as he  x"is trying to expand [his] business into West Branch," although he believes that he pays the station's regular  xadvertising rates and receives no special discount or consideration from the station. Additionally, Redd notes that  xthe WHST(FM) studio "is a logical place for me to locate my translator," because, among other reasons, WHST(FM)  x"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.  S-  xDiscussion. In MM Docket No. 88140,@#4 yO - x#C\  P6QgP##X\  P6G;gP##C\  P6QgP#э#C\  P6QgP##C\  P6QgP#Notice of Inquiry, 3 FCC Rcd 3664 (1988); Report and Order, 5 FCC Rcd 7212 (1990); Memorandum Opinion  yOX -and Order, 8 FCC Rcd 5093 (1993).#K\  P@Q P# the Commission tightened and/or clarified several  x.technical and operational requirements for FM translator stations after affirming that the proper role for  xthat service was to supplement the service provided by fullservice FM radio broadcast stations. The  xamended regulations prohibit the licensee of a commercial FM station, or any entity "interested or  xconnected with" the licensee of such a primary station, from owning an FM translator if the translator's coverage area extends beyond the primary  xstation's coverage contour. "Interested or connected" parties include group owners, corporate parents,  xshareholders, officers, directors, employees, general and limited partners, family members, and business  Sr- x[associates. See 47 C.F.R. 74.1232(d). Because of the potential for abuse, the Commission intended for  SJ - xzthis restriction to be read very broadly. Report and Order in MM Docket No. 88140, 5 FCC Rcd at  x7244, note 25 (1990). The underlying rationale for this prohibition has been to prevent FM station  xklicensees from using FM translators as a competitive means for extending their stations' service areas.  S -Id., at 7213.   lxWe conclude that the facts presented in this case violate the commercial FM translator ownership  SZ- xrestrictions contained in Section 74.1232(d).XZ#4 yO- x#C\  P6QgP##X\  P6G;gP##C\  P6QgP#э#C\  P6QgP#Given the facts and our finding here, we need not consider Carroll's claim that Redd is merely a "straw person"  xJfor Ives' broadcasting interests or that he has somehow lacked candor with the Commission in disclosing his business  yO"-relationships with Ives.#K\  P@Q P# As noted, the Commission will not issue a commercial FM  xtranslator authorization to any person or entity having "any interest whatsoever [in] or any connection  xwith" a primary FM station. Redd has evidenced several business connections with Ives' buying  xadvertising on the primary station and leasing transmitter site from the primary station's owner that we  xbelieve are the types of relationships that the Commission anticipated and forbade in MM Docket No. 88 S-140.u@ #4 yO- x#X\  P6G;gP##C\  P6QgP#э#C\  P6QgP#In Letter to Mr. P. Anthony Reed et al., reference 1800B2DEB (Chief, Audio Services Division, Mass Media  xBureau, September 5, 1995), the staff approved Mr. Reed's application for a new FM translator at Rawlins,  x,Wyoming, notwithstanding that Mr. Reed's employer, the Fremont Beverage Company, bought advertising time on  xthe primary station to be carried on Mr. Reed's translator. There was no other nexus between Mr. Reed and the  xprimary station. Here, Mr. Redd himself runs the company placing the advertisements, and he has contracted with  yO#- xthe primary station owner to lease space for his translator. The instant case therefore is distinguishable, and Reed  xis 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.u ",7)7)qq5"Ԍ  ԙxAccordingly, in light of the above discussion, the petition to deny filed by Carroll Broadcasting,  xInc. IS GRANTED to the extent indicated above, and the application (File No. BPFT970224TD) of Eric Redd for a new FM translator station on Channel 248 in East Tawas, Michigan, IS DISMISSED. x x` `  hh@hSincerely, x` `  hh@hLinda Blair, Chief x` `  hh@hAudio Services Division x` `  hh@hMass Media Bureau  S -#&J\  P6Q/&P#