ARCHIVED - Decision CRTC 2001-738

Decision CRTC 2001-738

Ottawa, 30 November 2001

HDL Investments Inc.
Regina, Saskatchewan 2001-0786-4

15 October 2001 Public Hearing
in Vancouver

Acquisition of assets of CFWF-FM (HDL Investments Inc.)

This decision is one of four issued today that serve to 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.

The Commission approves the application for authority to acquire the assets of the radio programming undertaking CFWF-FM 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 CFWF-FM under the terms of a local management agreement (LMA) which will terminate with the approval of the current application. HDL indicated that the type and level of local programming would not change with approval of the present application.

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

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 CFWF-FM 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

In Decision CRTC 2001-739 also issued today, the Commission also approves an application by HDL to acquire the assets of CKCK Regina from Craig. The total consideration relative to the CFWF-FM and CKCK transactions is $4,200,000. CFWF-FM and CKCK 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).

These commitments are over and above CFWF-FM's and CKCK's existing commitments and conditions of licence with respect 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 transmission and tower facilities of their Regina FM stations.

Other matters

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

Related CRTC documents

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