I've seen that happen in much larger markets as well. Back in the 90's Cox had a REALLY good, all-local sports station on a great signal, AM 600. It needed to do $50k per month because they were paying a lot of local TV people and sportswriters to do the shows, but that wasn't unreasonable considering it had some ratings.
The FM reps selling Rock 105 and WAPE, the powerhouse classic rock and CHR franchises, gave all the spots on 600 away, and eventually AM 600 became Radio Disney (we've heard that ending, haven't we?).