ARCHIVED -  Decision CRTC 85-147

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Ottawa, 27 March 1985
Decision CRTC 85-147
Gateway City Broadcasters Limited
North Bay, Ontario - 840446900
Following a Public Hearing in Sudbury on 1 December 1984, the Commission approves the application by Gateway City Broadcasters Limited (Gateway), licensee of CHUR North Bay, for authority to transfer effective control of the company through the issue of shares from Treasury, representing 75% of the resultant total voting shares, to Mid-Canada (45%) and Richard Donnelly (30%). As a result of this transaction, the shares of Gateway currently held by Harvey Ellis (Sid) Tomkins representing 100% of the total vote will be diluted to 25% of that total, and the ownership structure of Gateway will be such that no single shareholder will have clear-cut control.
Gateway's application is based on the urgent need for financial restructuring and additional shareholder investment in order to establish the North Bay station. CHUR was licensed in 1981 (Decision CRTC 81-875); in its decision, the Commission stated it was satisfied "that the applicant's well developed programming proposals, particularly the undertaking to produce a variety of programs directed to various segments of the North Bay community, will add significantly to the diversity of radio broadcasting services currently available in North Bay". Since that time, Gateway has experienced a series of financial setbacks, including the withdrawal of participation by all but one of its original shareholders. Although Mr. Tomkins has invested a significant amount of his own savings in the station, he indicated that the proposed financial restructuring and the participation by Mid-Canada offer the only viable means of ensuring that CHUR is established without further delay. The Commission notes that Mr. Tomkins will continue as Chairman and President of Gateway.
In its application, the licensee requested an amendment to its licence to allow it more time to establish the station. The Commission approves the licensee's request, and accordingly amends the licence for CHUR North Bay by deleting the existing condition of licence concerning the deadline for implementation of its authority, and by substituting the following therefor:
It is a condition of licence that construction of the station be completed and that it be in operation within twelve months of the date of this decision or such further period as the Commission may, upon receipt of a request for extension before the expiry of the said twelve months, deem appropriate under the circumstances.
At the hearing, the licensee of CHUR mentioned possible plans to incorporate Gateway as a limited partnership. The licensee is reminded that any such change would require the prior approval of the Commission.
Fernand Bélisle Secretary General

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