**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+------------------------------+
| In the Matter of                 | * | File Nos. BAL-990604GE       |
|                                  | * |                              |
| KORTES COMMUNICATIONS, INC.      | ) | BALH-990604GF                |
|                                  | * |                              |
| (ASSIGNOR)                       | * |                              |
|                                  |   |                              |
| and                              | * |                              |
|                                  | * |                              |
| STAFFORD BROADCASTING, L.L.C.    | ) |                              |
|                                  | * |                              |
| (ASSIGNEE)                       | * |                              |
|                                  |   |                              |
| For Consent to the Assignment of | * |                              |
| License of                       | * |                              |
|                                  | ) |                              |
| Stations WPLB(AM), Greenville,   | * |                              |
| MI and                           | * |                              |
|                                  |   |                              |
| WPLB-FM, Lakeview, MI            | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  |   |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  |   |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  |   |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  |   |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  |   |                              |
|                                  | * |                              |
|                                  | * |                              |
|                                  | ) |                              |
|                                  | * |                              |
|                                  | * |                              |
+----------------------------------+---+------------------------------+
|                                  |   |                              |
+----------------------------------+---+------------------------------+

**MEMORANDUM OPINION AND ORDER**

**Adopted: June 20, 2000 Released: June 30, 2000**

Before the Commission:

1\. The Commission has under consideration: (1) the above-captioned
applications for consent to assignment of licenses of Stations WPLB(AM),
Greenville, Michigan and WPLB-FM, Lakeview, Michigan, from Kortes
Communications, Inc. ("Kortes") to Stafford Broadcasting, L.L.C.
("Stafford"); and (2) an unopposed request for a permanent waiver of the
newspaper/radio cross-ownership rule.[^1]

2\. The sole member of Stafford Broadcasting, L.L.C., the proposed
assignee, is John B. Stafford, who is the publisher and Chairman of
Greenville News, Inc. d/b/a Stafford Communications Group, which
publishes [The Daily News]{.underline}, an evening newspaper published
in Greenville, Michigan. Mr. Stafford and his wife, Linda M. Stafford
together own 100% of the voting stock of Greenville News Inc. Neither
Mr. nor Mrs. Stafford currently has any broadcast interests. Stafford
requests a waiver of the newspaper/radio cross-ownership rule because
the 2 mV/m contour of WPLB(AM) encompasses the entire community of
Greenville. The 1 mV/m contour for WPLB-FM does not encompass
Greenville. As such, no waiver is necessary in order for Stafford to
acquire WPLB-FM. Greenville has a population of 8,452, and Lakeview has
a population of 1,235.[^2] WPLB(AM) is a Class B AM station with an
authorized power of 1,000 watts effective radiated power ("ERP") day
(nondirectional) and 500 watts ERP nighttime (directional). WPLB-FM is a
Class A FM station, operating with 3 kilowatts ERP at 100 meters HAAT
nondirectional.

3\. Stafford, in its waiver request, argues that due to significant
financial problems that face the station, and its inability to compete
effectively for advertising dollars, WPLB(AM) risks being taken dark if
the Commission does not grant the assignment application allowing
Stafford to acquire the stations. Stafford cites the current licensee's
previous unsuccessful attempts to sell the station to an entity that
does not have a newspaper. Stafford argues that grant of the waiver will
serve the public interest, including the twin goals of viewpoint
diversity and economic competition. For the following reasons, we grant
Stafford's request for a permanent waiver.

**WAIVER REQUEST**

4\. Stafford asserts that a grant of a waiver would be consistent with
the most recent case in which the Commission granted a waiver of the
newspaper cross ownership rule, *Columbia Montour Broadcasting Co.,
Inc.*, 13 FCC Rcd 13007 (1998) (*"Columbia Montour")*. In that case we
allowed a subsidiary of Press Enterprise, Inc., the publisher of a daily
newspaper in Bloomsburg, PA, to acquire WCNR(AM), a standalone failing
AM station there.

5\. *Financial Losses*. According to Kortes' 1998 corporate tax return
and other financial information provided by Stafford and Kortes, the
licensee has reported total operating losses for the combined operation
of the two stations since at least 1995. In that year, the net loss was
\$1,508. In 1996, \$55,167; in 1997, \$51,311; in 1998, \$28,759. By the
end of 1998, the company's accumulated losses had grown to \$227,750.
The company showed income of \$122,667.96, and total expenses of
\$146,874.65, resulting in a loss of \$20,206.69 for the first three
quarters of 1999.[^3] Jeffrey Kortes, the company's president,
represents that Kortes Communications can no longer afford to sustain
the ongoing losses the stations have generated.

6\. Kortes is a closely held corporation, owned by Jeffrey Kortes, his
wife, and Mr. Kortes' parents. According to Kortes, none of the
stockholders has been paid any dividends since the corporation was
formed, the stockholders have had loans to the company in excess of
\$42,500 outstanding since 1995, in addition to their initial aggregate
investment of \$60,000 in common stock and paid-in capital, and the
stockholders have personally guaranteed at least \$300,000 in mortgages
held by Old Kent Bank. Jeffrey Kortes is the only stockholder on the
company's payroll, and his salary of \$39,000 has not increased since
1993. The company operates both stations with a total staff of three
full-time and one part-time employees. The stations have different
programming formats. Stafford notes that the "AM station generates
almost no stand-alone revenue (other than a small amount for broadcast
of religious programs on Sunday mornings.)"

7\. *Efforts to Sell Stations*. In July 1996, Mr. Fred Barr,
representing a group interested in buying small radio stations in
Michigan, approached Mr. Kortes about selling the stations. Mr. Kortes
had several meetings with Mr. Barr regarding WPLB financials and
possible acquisition of the station, but at the conclusion of the
meetings, Mr. Barr's group did not "have adequate capital to make the
sale happen." In April 1997, Mr. James McCluskey, who "headed a group
that was interested in buying radio stations and making them
broadcasting schools," approached Mr. Kortes. However, after several
meetings, Mr. McCluskey informed Mr. Kortes that his partners had
"decided it was not monetarily possible for them to make the purchase."
In October 1998, Mr. Barr again approached Mr. Kortes, but he and his
partners "could not see where a stand alone would be able to sustain
itself and passed on the sale." Mr. Kortes' October 1998 listing of the
station on "buysellradio.com", an internet site that specializes in
small market station sales, resulted in no offers or inquiries. Mr.
Kortes approached Mr. McCluskey again in October 1998, to no avail. In
November 1998, Mike St. Cyr, the former general manager of a Grand
Rapids radio station which was being sold, approached Mr. Kortes about
buying the stations. However, Mr. Cyr concluded "he would not be able to
generate the revenue to run the station\[s\] profitably."

8\. In December 1998, Mr. Kortes approached the president of Stafford
about buying the stations. The parties agreed that the acquisition would
benefit the two companies by permitting joint operation of the newspaper
and the radio stations, and a purchase agreement was executed. However,
knowing that the acquisition might not be permitted by the FCC because
of the newspaper/radio cross-ownership restriction, Mr. Kortes once more
approached those individuals who had previously expressed an interest in
the stations, but they declined because they "still were not certain a
stand alone would survive in today's market." Mr. Kortes also spoke with
a new potential buyer, but that group did not have adequate financing.

9\. *Effect of Waiver on Competition and Diversity*. Stafford provides a
study prepared by its consultant to establish that media diversity and
competition would not be harmed by the common ownership of WPLB(AM),
WPLB-FM, and *The Daily News*. The study indicates that a total of 67
broadcast stations provide service[^4] to at least a portion of the area
within the WPLB(AM) 2 mV/m contour. That total includes 19 AM stations,
29 FM stations and 19 television stations. According to Stafford, 43
different licensees own those 67 stations. Stafford also provides a
study showing that 24 stations (6 AMs, 9 FMs and 9 TVs), including WPLB
(AM) and -FM, place a principal community signal over all or some
portion of WPLB's 2 mV/m service area. In terms of cable service,
Stafford notes that Greenville and the surrounding areas are served by a
35-channel cable television system, which sells local advertising. As of
October 31, 1996, the system was listed as having 5,992 subscribers and
passing 9,814 homes. Stafford notes that grant of the assignment
application will not result in any reduction in the number of broadcast
licensees because Stafford, which currently holds no broadcast licenses,
will be replacing Kortes as licensee of WPLB(AM) and WPLB-FM.

10\. With regard to newspapers, Stafford submits that *The Daily News*
faces significant competition from other daily and weekly
newspapers.[^5] Including *The Daily News*, a daily newspaper is
published in each of the three counties that fall within the WPLB(AM)
2.0 mV/m contour. *The Grand Rapids Press* is published daily and Sunday
in Kent County, and the *Sentinel-Standard* is published daily in Ionia
County. Additionally, Stafford submits that there are at least four
weekly newspapers published in Kent, Ionia and Montcalm counties. This
does not include "shoppers" without news content. Other daily newspapers
circulated in the area include the *Lansing State Journal*, the *Detroit
Free Press* and *The Detroit News*, as well as such national papers as
*The New York Times*, *The Wall Street Journal* and *USA Today*.

11\. The *Daily News* has an average paid circulation of approximately
9,000, the great bulk of which is in Montcalm County. According to an
independent audit supplied by Stafford, *The Daily News* had an average
paid circulation as of June 20, 1998 of 7,162 in Montcalm County, 1,136
in Ionia County and 323 in Kent County. According to a report of the
Audit Bureau of Circulations, released May 1998, *The Grand Rapids
Press*' circulation in Montcalm County was 2,992 daily and 5,575 on
Sunday. *The Grand Rapids Press*' overall daily circulation was 138,818,
more than 15 times that of *The Daily News*. In addition, the *Grand
Rapids Press* enjoys a Sunday circulation of 191,518, seventy percent of
which are circulated in the three-county area.[^6] *The Daily News*
publishes on Saturday mornings, but has no Sunday edition.

12\. With regard to the licensee's financial condition and competitive
position, Stafford submits that between 1995 and 1998, gross receipts
for both stations dropped sharply from \$331,774 to \$243,268. This
represents a revenue decrease of 26.7% over three years. The decline
continued into 1999, with the company showing income of \$122,667.96 for
the first three quarters of 1999, and expenses of \$146,874.65,
resulting in a loss of \$20,206.69 for that time period. In contrast to
Kortes' declining revenues between 1995 and 1998, the Grand Rapids radio
market enjoyed revenue growth of 27.3% during that time. According to
Stafford, the 1998 BIA Research Inc. Yearbook lists 31 radio stations as
competing in the Grand Rapids market, and *The M Street Journal* lists
36 radio stations (12 AM and 24 FM) in the Grand Rapids market. Both
sources include WODJ(FM), Greenville, Michigan, the only broadcast
station other than WPLB(AM) and --FM licensed to Montcalm County.
However, WPLB(AM) is not included in either the BIA or *M Street
Journal* listings.

13\. The waiver request included a Declaration from Robert F. Ottaway,
past president of the Michigan Association of Broadcasters, who has
worked in the radio industry in Michigan as an owner, consultant or
broker since 1982, and is very familiar with the Grand Rapids market and
surrounding areas, including Montcalm County. Ottaway states that
Montcalm County is in the Total Survey Area for the Grand Rapids
Arbitron market, but that WPLB(AM) does not have a measurable audience
share in the market. In contrast, he notes that WODJ(FM) does have a
significant audience share. The 1998 Arbitron Radio County Coverage for
Montcalm County reports 26 stations as having a measurable listening
audience in Montcalm County, but WPLB is not among them. According to
Ottaway, "the fact WPLB had no measurable audience share or listening
cume puts it at a significant competitive disadvantage in the
solicitation of advertising." Ottaway's experience suggests that it is
"extremely unlikely that WPLB could be sold as a stand-alone station for
anything other than a "fire sale" price and certainly not for a price
anywhere near what Kortes Communications, Inc. paid for the station in
1992, approximately \$185,000." Ottaway concludes that there is a high
likelihood WPLB will fail and go off the air unless it is sold to an
entity that (a) can effectuate operational efficiencies by running the
station in combination with other media outlets [and]{.underline} (b)
has a strong interest in the community of Greenville itself.

14\. According to Mr. Kortes, competition in the region has become more
intense since 1995, as the market has become more consolidated. Stafford
notes that three group owners (Goodrich Marketing, Capstar TX LP and
Clear Channel Communications) own 12 stations in the market.[^7] Kortes
has not only lost revenues but has lost key employees because of the
consolidation. Stafford states that Kortes cannot offer the benefits
that the consolidated groups can, and that the lack of sales personnel
has severely hampered the company\'s ability to generate revenue. Mr.
Kortes notes that it is very difficult for a stand alone in a small
market to survive, and insists that no independent group will be able to
operate WPLB profitably; that the only options are to allow Stafford to
acquire the station or to take WPLB dark.

**Discussion**

15\. In adopting the 1975 rule that generally prohibited the common
ownership of a newspaper and broadcast station serving the same
community, we made it clear that fostering diverse viewpoints from
antagonistic sources is at the heart of our licensing
responsibility.[^8] We concluded that granting a broadcast license to an
entity in the same community as that in which the entity also publishes
a newspaper could harm local diversity.[^9] At the same time, we noted
our expectation that there could be meritorious waiver requests and
specified four circumstances in which waivers would be warranted: (1)
where a licensee is unable to sell a station; (2) where the only sale
possible would be at an artificially depressed price; (3) where separate
ownership and operation of the newspaper and the broadcast station could
not be supported in the locality; or (4) where, for whatever reason, the
purposes of the rule would be disserved by its application.[^10] In
examining waiver requests under the fourth category, the Commission will
consider any "special circumstances" advanced by a party as having
bearing on the appropriateness of granting a waiver.[^11] These waiver
standards were originally designed to govern divestiture of combinations
formed prior to implementation of the rule, but they have also been
applied to "new" combinations such as the one proposed here.[^12]
Because Stafford requests a permanent waiver of the Commission's rule,
it faces a "considerably heavier" burden of justification than if it
sought a temporary waiver.[^13]

16\. As we stated in the *Newspaper/Radio NOI*, "there may be markets in
which allowing waiver of the cross-ownership restriction would be
healthy for the maintenance of diversity. This could occur, for example,
in markets where a newspaper is failing and the only prospective
purchaser is the owner of a local radio station."[^14] The Commission
has only granted permanent waivers of the rule in three instances, two
involving television stations, and one involving a radio station. Each
of those waivers was granted under the fourth "catch all" waiver
category listed above. In *Field Communications Corporation
("Field)*,[^15] the Commission granted a permanent waiver to allow Field
Enterprises, Inc., publisher of two daily newspapers in Chicago, to
reacquire control of WFLD-TV, Chicago. The Commission held that Field's
reacquisition of the station did not constitute a new ownership pattern,
and thus was similar to ownership patterns grandfathered under the daily
newspaper cross-ownership rule. Additionally, the Commission perceived
the need for the UHF station to be maintained as part of a five-station
group of UHF stations (that was being assigned to Field) in order to
ensure the financial viability of the entire group.[^16] In *Fox*, The
Commission also granted a permanent waiver of the rule to allow Rupert
Murdoch to continue to control the licensee of WNYW, New York, New York,
after acquiring the failing *New York Post* in a bankruptcy
proceeding.[^17] There was evidence that Murdoch's ownership might be
"pivotal to the newspaper's survival."[^18] As in *Field,* Murdoch had
previously controlled the entity to be acquired, and had a continuing
financial interest in the property.[^19]

17\. Lastly, in *Columbia Montour*, we granted a permanent waiver of the
rule to allow a subsidiary of Press Enterprise, Inc., to acquire
WCNR(AM), Bloomsburg, Pennsylvania. We were persuaded that a waiver was
warranted based upon: (1) the applicant's documentation of its
unsuccessful efforts to sell WCNR(AM); (2) the financially troubled
status of the small AM station; (3) the fact that the proposed common
ownership involved a newspaper and a single AM station; (4) the
relatively high level of media diversity in the market where the
facilities to be commonly owned were located; (5) the fact that the AM
station was not a significant competitive force in the market; and (6)
our determination that the proposed newspaper/small AM combination was
unlikely to have an adverse effect on media competition in the
market.[^20] Stafford compares its situation to that in *Columbia
Montour*, and argues that the six factors that resulted in grant of a
waiver in *Columbia Montour* are equally applicable in the instant case.

18\. We agree. As in the case of WCNR, the combination of factors
suggests that a review of the waiver request under the fourth waiver
criteria is more appropriate than review under the first three criteria.
We are cognizant that *The Daily News* is the only paper published in
Montcalm County on a daily basis, and that granting a waiver necessarily
decreases the count of media voices by one in this market. However, we
find that the twin purposes of the newspaper/radio cross-ownership rule
-- promoting media diversity and competition -- would be disserved by
denial of Stafford's request. The record suggests that failure to grant
a waiver in this instance would likely lead to a diminution in the level
of competition and diversity among media outlets in Montcalm County,
Michigan, and the surrounding counties, as well as the loss of a
broadcast outlet providing service to its local community, because
WPLB(AM) would probably be taken off the air. We note that a 5 kW AM
station licensed to nearby Ionia, Michigan, was placed in the hands of a
Receiver in March 1998.[^21] Mr. Stafford has a strong interest in the
community of Greenville, and in preserving WPLB as an outlet for local
news and information. To accomplish this, his company is willing to
invest the money, time and energy necessary to revive WPLB(AM),
including the implementation of certain organizational efficiencies to
reduce the operating costs for the station.

19\. Montcalm County is located within the Arbitron Total Survey Area
for the Grand Rapids Michigan market, but WPLB(AM) has no measurable
audience share therein, in contrast to WODJ(FM), which has a significant
audience share in the market. The 1998 Arbitron Radio County Coverage
for Montcalm County report lists 26 stations as having a measurable
listening audience in Montcalm County, but WPLB(AM), which is one of
only three stations licensed to Montcalm County, is not listed. Although
Montcalm County is not located within the Grand Rapids Arbitron Radio
Metro Market, WODJ(FM) had a 4.3 share of that market's audience during
the Summer 1999 reporting period,[^22] and 4.2% of the market revenues
for 1998.[^23] Neither WPLB(AM) nor WPLB-FM appear in BIA's or
Arbitron\'s research for the Metro Market.[^24]

20\. Kortes has been struggling financially in recent years with
declining sales revenues, at the same time that radio revenues in the
nearby market have increased. Kortes' accumulated losses stood at
\$227,750 in its 1998 tax return, and those losses continued into 1999.
Jeffrey Kortes, the licensee's president has not had an increase in his
\$39,000 annual salary since 1993. The two stations are operated with a
bare-bones staff of just three full-time and one part time employees,
who are running two 24-hour radio stations with different formats
licensed to communities approximately 20 miles apart. None of the
stockholders has been paid any dividends since the corporation was
formed, and the stockholders have had loans to the corporation in excess
of \$42,500 outstanding since prior to 1995. They have personally
guaranteed at least \$300,000 of the corporation's mortgages with Old
Kent Bank.[^25] Moreover, the inability to attract any interested buyer
in several years underscores the economically precarious position of
WPLB(AM). Given Kortes' dire financial situation, combined with its
inability to compete for listeners and advertisers, we believe there is
a high probability that WPLB is faced with going dark.

21\. The Commission has determined in cases such as this that the
relevant market for analyzing the effects of a newspaper/radio
cross-ownership waiver on diversity and competition is the common area
served by the newspaper and the 2 mV/m contour of the AM station.[^26]
According to Stafford's engineering analysis, WPLB's 2 mV/m contour
encompasses approximately half of each of the three counties of
Montcalm, Ionia and Kent, and *The Daily News* is circulated to homes
within each of those counties. Because we are convinced that *The Daily
News* serves portions of all three counties, we accept the applicant's
characterization of the relevant geographic market.[^27]

22\. For its diversity analysis, Stafford has counted the number of
radio and television stations providing service to the area within
WPLB(AM)'s 2 mV/m daytime contour, and asserts that this area has a
wealth of broadcast services. Although Greenville is located in the
Grand Rapids DMA, Stafford limits the count of television stations that
serve the relevant market to those which provide service to the overlap
area.[^28] Considering the impact of the proposed combination on local
diversity, our analysis indicates that the relevant market is served by
a wide variety of media. Specifically, Stafford has shown that all eight
of the commercial television stations licensed to the Grand
Rapids-Kalamazoo-Battle Creek DMA clearly place a Grade A signal over
substantial portions of WPLB's 2 mV/m contour area, given that they each
provide a City Grade signal to that area. In *Columbia Montour*, all
four of the commercial television stations licensed to the Wilkes-Barre
DMA provided Grade A service to the relevant market (Columbia County).
According to Stafford, an additional ten television stations provide
Grade B service to the overlap area, and some of those stations likely
provide Grade A service, as well. Aural service to the overlap area is
also substantial. Stafford has shown that at least 14 radio stations
(including WPLB(AM) and -FM) place a principal community contour over a
portion of the area within the WPLB 2 mV/m contour. In *Columbia
Montour*, 11 radio stations (including WCNR) placed a principal
community contour over at least a portion of Columbia County.[^29]
According to Stafford, 24 broadcast stations, representing 18 different
"voices," provide City Grade service (in the case of television) or
principal community service (in the case of radio) to at least a portion
of the area within WPLB's 2 mV/m contour. This number exceeds the number
of voices that provided comparable service in *Columbia Montour*. We
also note that even the portions of WPLB's 2 mV/m contour which are
furthest away from Grand Rapids (the source of most of the voices
referred to herein), receive protected service from five or more
additional

radio stations, which is our traditional measure of a well-served
area.[^30] Given this information, we are satisfied that there is
substantial diversity of viewpoint within the relevant market.

23\. Cable television penetration throughout the Grand
Rapids-Kalamazoo-Battle Creek DMA is 61%.[^31] There are 6 cable
television systems serving communities in the three counties of Kent,
Montcalm and Ionia, and two cable systems serve Montcalm County.[^32]
The 35-channel system serving Greenville has 6,174 subscribers and
passes 9,814 homes. The system sells local advertising, and serves all
three counties.[^33]

24\. Stafford has also shown that there are 9 daily newspapers
circulated within the 2 mV/m contour. The *Grand Rapids Press*' overall
daily circulation is 138,818, more than 15 times that of the *Daily
News'* circulation.[^34] Within Greenville alone, the *Grand Rapids
Press* was distributed to 25.95% of the homes on weekdays, and 45.30% on
Sundays.[^35] The *Daily News* is circulated to 62 % of the households
within the Greenville corporate limits, and to 33.94% of the households
within Montcalm County.[^36] Overall, the *Grand Rapids Press'*
circulation, expressed as a percentage of households, in the three
counties is as follows: Montcalm, 14.45% evenings, 26.93% Sunday; Kent,
48.75% evenings, 62.74% Sundays; and Ionia, 14.86% evenings, 25.04%
Sundays.[^37] There are no morning dailies published in Montcalm County.
Similar to the situation in *Columbia Montour*, the *Daily News* is the
only locally-based daily newspaper published in its home county, where
its daily circulation exceeds its closest competitor. However, the
*Press-Enterprise* had a daily circulation in Columbia County of 58%;
the *Daily News* has a daily circulation in Montcalm County of only 34%.
In *Columbia Montour,* the *Press-Enterprise* faced competition in
Columbia County from approximately 10 competing newspapers with a
combined daily circulation of 10% of households, and Sunday circulation
of 22%. In contrast, the *Grand Rapids Press* is circulated to 14.45% of
the households in Montcalm County, and at least six other papers are
circulated therein. We also note that, unlike the situation in *Columbia
Montour*, the *Daily News* is not published on Sundays, a day on which
the *Grand Rapids Press* faces no competition in Montcalm County. In
sum, we find that the *Daily News* faces substantial competition from
the *Grand Rapids Press.*

25\. Although a waiver is not required to allow Stafford to acquire
WPLB-FM, we think it important to consider this station, given that the
result of our action is to allow a single entity to own an AM, FM and a
daily newspaper in the same area. We do not believe that this makes the
instant situation so different from *Columbia Montour* or other cases in
which waivers have been granted, as to warrant denying the request.
Notwithstanding the efficiencies that the licensee has achieved through
joint station operations, the financial condition of Kortes continues to
deteriorate. In addition, WPLB-FM faces substantial competition from
stations licensed to the Grand Rapids Metro Market, but does not
currently garner a measurable share in that market. Lastly, a waiver is
not required to allow Stafford to own WPLB-FM. For these reasons, we
find that grant of the assignment of WPLB-FM to Stafford is in the
public interest.

26\. In conclusion, we believe that grant of the requested waiver is in
the public interest as it ensures that WPLB will remain on the air and
continue to serve the needs of the community of Greenville and the
surrounding areas. Any impact on competition will be minimal, given both
stations' inability to garner any measurable share in the Grand Rapids
market, as well as the diversity of media outlets serving the
newspaper/radio overlap area. Finally, Stafford appears to be a
financially viable company with the ability to infuse needed resources
into the operation of these stations and to maintain their service to
Greenville.

27\. Accordingly, IT IS ORDERED, That a permanent waiver of the
Newspaper/radio cross-ownership rule, 47 C.F.R. Section 73.3555(d)(2),
IS HEREBY GRANTED to Stafford Broadcasting, L.L.C., to permit common
ownership of WPLB(AM), Greenville, Michigan, and *The Daily News*.

28\. IT IS FURTHER ORDERED, That, having found the parties fully
qualified, the application to assign the licenses of WPLB(AM),
Greenville, Michigan, and WPLB-FM, Lakeview, Michigan, from Kortes
Communications, Inc., to Stafford Broadcasting, L.L.C., is HEREBY
GRANTED.

FEDERAL COMMUNICATIONS COMMISSION

Magalie Roman Salas

Secretary

[^1]: Section 73.3555(d) of the Commission\'s rules, 47 C.F.R. Section
    73.3555(d), prohibits the grant of an AM broadcast station licensed
    to "any party (including all parties under common control) if such
    party directly or indirectly owns, operates or controls a daily
    newspaper and the grant of such license will result in . . . \[t\]he
    predicted or measured 2 mV/m contour of an AM station . . .
    encompassing the entire community in which such newspaper is
    published." In 1996, the Commission initiated an inquiry concerning
    proposed changes to the newspaper/radio cross-ownership waiver
    policy and invited public comment. *See Newspaper/Radio
    Cross-Ownership Waiver Policy, Notice of Inquiry*, MM Docket No.
    96-197, 11 FCC Rcd 13003 (1996) ("*Newspaper/Radio NOI").* The
    comments filed in that proceeding were considered in the
    Commission's 1998 Biennial Regulatory Review, wherein we sought
    comment on whether the newspaper/broadcast cross-ownership rule
    should be retained, modified or eliminated. *See 1998 Biennial
    Regulatory Review of the Commission's Broadcast Ownership Rules and
    Other Rules Adopted Pursuant to Section 202 of the
    Telecommunications Act of 1996*, *Notice of Inquiry,* 13 FCC Rcd
    11276, 11288 (1998)*.* On May 26, 2000, the Commission adopted the
    Biennial Review Report, in which we determined that, as a general
    matter, the rule should be retained because it continues to serve
    the public interest by furthering our important and substantial
    policy of viewpoint diversity. However, as we stated in the Biennial
    Review Report, "we believe that there may be circumstances in which
    the rule may not be necessary to achieve its intended public
    interest benefits. We, therefore, will initiate a rulemaking
    proceeding to consider tailoring the rule accordingly." *See
    Biennial Review Report*, MM Docket 98-35, FCC 00-191, at ¶ 88 (rel.
    June 20, 2000).

[^2]: According to US Census Bureau population estimates as of July 1,
    1998.

[^3]: See letter to the Commission from Jeffrey Kortes, President of the
    Assignor, filed on November 17, 1999 (*"Kortes Letter")*.

[^4]: Stafford determined the number of stations providing service
    within the overlap area based on the use of stations' protected
    contours: for AM stations, the 2 mV/m contour was used; for FMs, the
    1.0 mV/m contour was used; and for TV, the Grade B contour was used.
    Both commercial and non-commercial stations were counted. Waiver
    request at n.7. In its waiver request, Stafford also notes the
    number of stations whose principal community contours overlap the
    relevant market.

[^5]: *The Daily News* and its largest competitor, *The Grand Rapids
    Press*, are both evening papers during the week. Stafford notes that
    it publishes a weekly newspaper in Carson City, Michigan, which is
    outside of the 2 mV/m for WPLB(AM).

[^6]: Audit Bureau of Circulation statistics for period ending December
    31, 1997, released May 1998, p. 5

[^7]: We note that since the WPLB assignment application was filed,
    WODJ(FM) was acquired by Michigan Media, Inc., and an application to
    assign WODJ(FM) to Citadel Broadcasting Co. was granted on April 7,
    2000 (FCC File No. BALH-20000315ABC). In addition, there is pending
    an application proposing the transfer of control of AMFM, Inc.
    (including Capstar stations) to Clear Channel. The transfer of
    control application indicates, however, that Clear Channel will be
    required to divest stations in order to comply with the multiple
    ownership rules.

[^8]: *Multiple Ownership of Standard, FM, and Television Broadcast
    Stations, Second Report and Order*, 50 FCC 2d 1046, 1079 (1975)
    ("*Second Report and Order*"), *recon*., 53 FCC 2d 589 (1975)
    ("*Recon. Order*"), *aff'd sub. nom. Federal Communications
    Commission v. National Citizens Committee for Broadcasting*, 436
    U.S. 775 (1978).

[^9]: *Second Report and* Order, 50 FCC 2d at 1075.

[^10]: *Second Report and Order*, 50 FCC 2d at 1085.

[^11]: *See Columbia Montour*, 13 FCC Rcd at 13012.

[^12]: *See Columbia Montour*, 13 FCC Rcd at 13012; *Fox* 8 FCC Rcd at
    5348 & n.19; *Newspaper/Radio NOI*, 11 FCC Rcd at 13004-05.

[^13]: *See Fox Television Stations, Inc.*, 8 FCC Rcd. 5341, 5348 (1993)
    *aff'd sub nom. Metropolitan Council of NAACP Branches v. FCC*, 46
    F.3d 1154 (D.C. Cir. 1995) ("*Fox*") (citing N*ews America
    Publishing, Inc. v. FCC*, 844 F.2d 800, 803 (D.C. Cir. 1988);
    *Health and Medicine Policy Research Group v. FCC*, 807 F.2d 1038,
    1042-43 (D.C. Cir. 1986).

[^14]: *Newspaper/Radio NOI*, 11 FCC Rcd at 13009.

[^15]: *Field Communications Corp*., 65 FCC 2d 959 (1977)("*Field"*).

[^16]: *Field,* 65 FCC 2d at 961*.*

[^17]: *Fox*, 8 FCC Rcd 5341.

[^18]: *Fox*, 8 FCC Rcd at 5350.

[^19]: *See Fox*, 8 FCC Rcd at 5342; *Field*, 65 FCC 2d at 961.

[^20]: *Columbia Montour*, 13 FCC Rcd at 13013.

[^21]: See BAL-980511GF (involuntary assignment from Rhoden Enterprises,
    Inc. to Agricultural Resource Group, Inc., Receiver, granted May 21,
    1998). Stafford notes that WION should have been in a better
    position to prosper than WPLB(AM), because of WION's superior
    authorized daytime power of 5 kW. WION's authorized nighttime power
    was 330 watts, slightly below WPLB's authorized 500 watts. See
    waiver request at 10 & n.19.

[^22]: Duncan's Summer 1999 ratings report.

[^23]: Investing in Radio 1999, 1^st^ edition. Copyright 1999 BIA
    Research, Inc.

[^24]: Investing in Radio 1999, 1^st^ edition. Copyright 1999 BIA
    Research, Inc.

[^25]: Contrast Kortes' failing financial situation with lack of such a
    showing in *Hopkins Hall*, wherein we stated "there was no question
    concerning the financial viability of any of the media properties."
    *Hopkins Hall Broadcasting, Inc.*, 10 FCC 9764, 9766 (1995).

[^26]: See *Columbia Montour*, 13 FCC Rcd at 13015. *Also* s*ee
    Newspaper/Radio NOI*, 11 FCC Rcd at 13011; *Capital Cities/ABC,
    Inc.*, 11 FCC Rcd 5841, 5890 (1996); *Hopkins Hall Broadcasting,
    Inc.*, 10 FCC Rcd at 9766.

[^27]: This is consistent with our decision in *Columbia Montour*,
    wherein we accepted the applicant's description of Columbia County,
    Pennsylvania, as being the relevant market because the boundaries of
    Columbia County approximated the common area served by the newspaper
    and the 2 mV/m contour of WCNR. Similarly, in *Stockholders of
    Renaissance Communications Corporation*, we concurred in the
    applicants' contention that the relevant geographic market was Dade,
    Broward and Palm Beach counties, because WDZL(TV)'s Grade A contour
    (the relevant contour when testing a newspaper/television cross
    ownership waiver) included portions of each of these counties, and
    the *Sun-Sentinel* was distributed in each county. *Stockholders of
    Renaissance Communications Corporation*, 12 FCC Rcd 11866 (1997).

[^28]: In contrast to the instant case, the applicant in *Capital
    Cities/ABC, Inc.* sought to include in its count of "voices" all of
    the television stations in the DMA. However, we rejected this
    attempt, stating "the relevant market for our diversity and
    competition analyses remains the common areas served by the
    newspaper and the 2 mV/m and 1mV/m of the AM and FM stations,
    respectively, not the DMA." 11 FCC Rcd 5841, 5891 (1996).

[^29]: *Columbia Montour*, 13 FCC Rcd at 13015.

[^30]: *See 1998 Biennial Regulatory Review \-- Streamlining of Radio
    Technical Rules in Parts 73 and 74 of the Commission's Rules*,
    Notice of Proposed Rulemaking, 13 FCC Rcd 14849, 14857 (1998) citing
    *Table of Allotments, FM Broadcast Stations, Bay City, Texas*, 10
    FCC Rcd 3337(1995) (in which we stated that the Commission considers
    areas receiving at least five aural services to be adequate
    service).

[^31]: Television & Cable Factbook 1999, Cable Vol. at D-753.

[^32]: Warren Publishing 1999 Cable and Station Coverage Atlas, pp.
    302-306.

[^33]: Television & Cable Factbook 1999, Cable Vol. at D-753.

[^34]: Audit Bureau of Circulation statistics for the period ending
    December 31, 1997, p. 5. The *Grand Rapids Press*' Sunday
    circulation is 191,518.

[^35]: Audit Bureau of Circulation statistics for period ending December
    31, 1997, page 16.

[^36]: Audit Bureau of Circulation statistics for the period ending June
    30, 1998, page 5.

[^37]: Audit Bureau of Circulation statistics for the period ending
    December 31, 1997, p. 5.