KQLO / RENO SHUTDOWN BY IRS?

[Joe Piazza]

I heard a rumor that the IRS shut down KQLO/Sun Valley (Reno) on Thursday. According to the source, owner/operator Liriano "Lee" Chavez owes more than $100,000 in back taxes.

If true, how does this affect the FCC license?

 

[Rockin Rob]

At some point, the FCC might mandate the station be put up for sale. Then, more than likely, the IRS steps in and orders the station, license, facilities, equiptment, etc. all put up for auction. Sell to the highest bidder and hopefully that will cover the taxes missing. Otherwise, the owner is still on the hook.

Either way, expect new owners for KQLO and soon.

 

[newsperson]

Newsperson responds:

The FCC never mandates that a dark station be sold, they only approve a sale if an application is put before them.

On the other hand the IRS wants to be paid, therefore there must be an avenue where they could hold a tax lien sale, subject to the FCC approval of the station license transfer.

As far as something happening soon is unlikely, unless a propsed buyer pushes things along. However the owner Lee, does have a prescribed time to cure and whether that time has passed or will pass soon is unknown.

Does anyone know the status of this and what the position of the IRS is?

I will look for your replies.

Newsperson

 

[Rockin Rob]

We had a situation in NEPA 3 years ago (which can be referenced through Scott Fybush's Northeast Radio Watch here: http://www.fybush.com/NERW/2005/051212/nerw.html), and it was a different circumstance (the station owner, Doug Lane, was busted on child molestation charges), but because of the "pending" charges, he was forced to sell off his radio stations (at the time, called WICK. WYCK and WWDL). Actually, the law states the FCC revokes the stations' license, but the county prosecutor allowed the stations to be sold with a stipuation that a certain amount ($300K) be set aside for the victims.

So, in conclusion, I believe that the FCC can, at the least, revoke a station's license if the owner is involved in some shady dealings, if not outright criminal acts.

 

[w9wi]

I heard a rumor that the IRS shut down KQLO/Sun Valley (Reno) on Thursday. According to the source, owner/operator Liriano "Lee" Chavez owes more than $100,000 in back taxes.

If true, how does this affect the FCC license?

In the short term, it doesn't.

Unless there's some kind of criminal tax fraud involved, I think it's unlikely the license will be affected at all. However, the licensee will have to get the station back on the air within a year or the Communications Act will require its license be revoked.

The FCC *can* find a station licensee "not qualified to be a Commission licensee". It seems to require a criminal conviction, but not all crimes seem to be treated as serious enough. I've not heard of it happening for tax offenses. It has happened (as cited by "Rockin Rob") for child sexual offenses - not just in NEPA - three frequencies in Terre Haute, Ind. are still silent after a separate incident. Radio hams have lost their licenses for some kind of telephone-related fraud, and in a separate case, for murder.

Merely being charged isn't enough, a conviction is necessary. However, once you're convicted and your licenses are revoked, the sale value of your station plummets. Basically it's worth only the value of the used physical equipment. The Indiana revocation took place years ago but the Commission has not yet acted on the dozens of applications to reactivate the silent frequencies.

So I could imagine a licensee accused of a serious felony being VERY willing to sell their station in a "fire sale" & get something for the license, rather than wait for conviction & allow the license value to vanish. It's probably a good deal for the community too, as the frequencies remain in operation instead of going silent for years.

 

[newsperson]

Newsperson responds:


What value does KQLO have now? It is off the air with no advertising and a tower site lease that expries in 2009. The studios were dismantled by Lee himself and not any goverment agency.

The IRS has not shut down the station, they are in bankruptcy. The IRS debt is only 40K, however there are some other creditors and it could add up to 100K.

There is an allegation in the file that the bookeeper imbezeled some money, however there are no criminal allegations against Lee himself so we shouldn't be starting any.

In the long run his station just could not survive in this recession.

Mervyn's has just announced that it will close its Reno, Sparks and Carson City stores. There goes another large account from the market. Car dealers are spending 30 per cent less and Lee had some auto accounts.

So what is the future for 1590 Khz? Who should buy it and what could they do?

Would it be just another money looser?

I will look for your replies.

Newsperson

 

[Rockin Rob]

Admitedly, I don't have much knowledge on the Reno market (outside of a brief visit to Lake Tahoe in 1989). That being said, I would imagine the new owners could pick up a format off the bird. I am a big fan of ABC's Timeless, Jones' New Music of Your Life and ABC's Scott Shannon's True Oldies Channel.

I do see KTHO (weren't they once on 560?) is running Standards, according to RadioStationWorld.com. Wikipedia says they use ABC, so there goes that idea (Timeless). KPLY has ESPN, while KHIT secured FOX, so it seems sports is off the table. Hmmmm, mabye some sort of brokered format? Or, "dollar a holler" preachers. Is anyone doing Classic Country?

 

[newsperson]

Newsperson responds:

KTHO has always been on 590 Khz. Although they run timeless favorites, Reno is way outside the area of protection. Other shows such as Rush and Kim Komando run in both South Lake Tahoe and Reno. Regardless a straight music format on AM is a tough go against all those FMs.

Las Vegas seems to do so much better with AMs, even the lower power stations like 1230, 1340 and 1400 Khz. Moving up the dial (and power) to 1460 Khz. KENO runs lots of spots.

Back to Reno and 1590 Khz., what a financial and legal mess. Bankruptcy can protect a business for a while, except in this case the court has come back and bitten Lee in the ass (by sutting down the station).

Any possibility that Lee or one of his relatives will buy the station?

I will look for your replies.

Newsperson

 

[Joe Piazza]

KQLO stopped being relevant around 2000 when other Spanish-language stations popped up in Reno. Lee always refused to do anything realistic with the format. He would play only the music he liked, a lot of it from his native Dominican Republic (not too many Dominicans in Reno to support this logic).

He would do his one-hour mornig talk show only when he felt like it. And during the rest of the day he would open the mic at any time he felt like talking. No real format or organization. That is only okay if you're a millionaire and are only in radio to play radio, but I don't think Lee was ever in that great of a financial situation.

An English-language format was never an acceptable option for him, even when there were AM format holes in Reno. It's sad when an owner/operator finds himself in this situation, but in this case Lee pretty much dug his own grave by refusing to follow advice and alienating many clients and friends in the process.

 

[maximumradio]

Any time a radio station goes down is a sad event. There are several formats in English for a future KQLO licensee to consider and I will not give any perspective on them or guess as to market viability..I want your feedback.

1) Extreme conservative talk as in Accent Radio Network/Genesis Communications Network including Alex Jones.

2) Adult standards--Of course Bob Carol is in the market on 1550 with his Music of America for a number of hours daily--Anyone know how many?

3) Urban Adult using everything from Tom Joyner to Wendy Williams, Michael Baisden, and The Sweat Hotel (Keith Sweat) with some "Old School" mixes thrown in for good measure.

4) Pay for play: Totally brokered programming with a combination of colon cleansing and vitamin offerings as well as offering paid time to every local who ever wanted access to a mic and a potential audience.

5) Ownership by a non comm organization so that the NPR/PRI/etc or even Pacifica talk programming could be moved to an AM stick as is done in Oregon and Georgia among other areas.

6) Tourist radio-all tourist all the time..Been done successfully in Niagara Falls and Branson and died in Las Vegas and Florida.

Comments?

 

[newsperson]

Newsperson responds:

I like the idea of all tourist radio, except the casinos are all so focused on themselves, would they ever co-operate on with joint sponsorships? Since the rules have changed, could a station run direct gaming programs that would sound interesting?

As far as Bob Carroll is concerned his program does have some foollowing, however the new studio would need to have a large enough door for him and his ego.

Pay for play is always a good way to go. Who else would be out there besides the colon cleaners?

During Hot August Nights I noticed that KKOH did a one-day of oldies and they sound OK. They talked about re-wind, however the only music 780 ever played was classical and country. On the FM side KODS 103.7 sounds more like a classic rock station. Is there a void for oldies in the market?

I will look for your comments.

Newsperson

 

[Rockin Rob]

Any time a radio station goes down is a sad event. There are several formats in English for a future KQLO licensee to consider and I will not give any perspective on them or guess as to market viability..I want your feedback.

1) Extreme conservative talk as in Accent Radio Network/Genesis Communications Network including Alex Jones.

First, you box yourself out with stations that carry any form of conservative programming. Next, you need a big name. Michael Savage comes to mind. Maybe not a straight-line conservative, but his views do skew right and is enough of a kook to be a building block. A format like this would need a lot of nurturing and sales support.

2) Adult standards--Of course Bob Carol is in the market on 1550 with his Music of America for a number of hours daily--Anyone know how many?

Not sure of the number, but if a bad song comes on 590, then they would have an alternative. One good source would be Jones' "Music of your Life". Plus, ever see their talent roster? Peter Marshall, Wink Martindale, Gary Owens. People remember them!

3) Urban Adult using everything from Tom Joyner to Wendy Williams, Michael Baisden, and The Sweat Hotel (Keith Sweat) with some "Old School" mixes thrown in for good measure.

All syndie, which is cost effective. In hours where you need to fill with music, you can pick up ABC's "The Touch". Again, it needs to be supported with the sales staff.

4) Pay for play: Totally brokered programming with a combination of colon cleansing and vitamin offerings as well as offering paid time to every local who ever wanted access to a mic and a potential audience.

Easiest way to turn a buck. Easiest way to guarantee no one outside of the host's friends will listen, either. In this case, you need to find enough unique programming to get the casual listener to punch it up.

5) Ownership by a non comm organization so that the NPR/PRI/etc or even Pacifica talk programming could be moved to an AM stick as is done in Oregon and Georgia among other areas.

I suppose that's better than cluttering up the FM band with numerous space-wasting translators.

6) Tourist radio-all tourist all the time..Been done successfully in Niagara Falls and Branson and died in Las Vegas and Florida.

Comments?

Might be unique enough to get the job done. "X and Y casino now sponsors this Reno Traffic Report on 1590AM".

 

[radiofreqk1]

I'm not sure the courts ordered 1590 off the air or that the "owner" Lee - just took the station dark. But there is alot more to the story. While the FCC gave the OK to transfer (buy) the station -- there appears that the "sale" might not have taken place. No notice was filed with the FCC of the transfer -- nor is it on file. No application for renewal was filed. An offer to buy the station was withdrawn because of some FCC status problems. Lee still wants to hold on to the station some how. Maybe the site lease has something to do with the problems. It was to be a ten year "buy out" that was signed back in 1999 -- so 2009 would be ten years. It could be that IHR still owns KQLO -- just because they have never "signed off" of the license or were not "paid off". The real problem is when the attorneys get involved. Once that clock starts ticking -- the fees will kill off any chance to save KQLO.

 

[Rockin Rob]

So, because of the lawyers, the listening public gets shrimped out of another radio station. Oh, that's just wonderful [end sarcasm].

The one good thing is that the station might be offered up as part of an auction, which would allow another broadcaster, perhaps with a fresh idea, to come in and rescue KQLO.

 

[Power107]

Sam has a good point. During my short stay at the now defunct Q102.9 in Reno (circa 2002) I spoke to someone from IHR (Doug something) who mentioned IHR still owned KQLO, although that was 6 years ago.

 

[newsperson]

Newsperson responds:

sam; The US Bankruptcy Trustee ordered the station off the air by ordering Sierra Pacific to turn off the power a the transmitter site. Although this was not the leagl way to do it, the FCC is very forgiving of what Federal and State Courts do.

The sale took place and the FCC has Universal Broadcasting listed as the owner. Yes Lee never filed the consumation letter, however the FCC knows the transfer took place. IHR has been fully paid.

Rockin Robin;

Yes we don't need any more right wing programs on in Reno. I just remembered that 99.1 licensed to Minden-Gardnerville is now on McCullen Peak with right wing FM talk. Their afternoon show is hosted by Ira Hansen (not to be confused with IRA Littman the consultant for KXTO. Ira Hansen is one of the beyond right wing guys doing the same thing that Bill Manders does on KKOH.

Some music on AM might be a relief especially if its live. How about Vince Scully and a season of the L.A. Dodgers in Reno?

The clock has already been ticking on attroney fees and Lee has paid an attorney. The attorney for the trustte is paid by the court. The site lease is not cheap either so the days of running a station on bare bones may be gone.

At one time Radio Disney wanted an affiliate in Reno except how are you going to make money targeting the tween market?

Remember when 1590 was talk and there were two Andy Anderson's in town? One went to puch the other at the station because of his views?

Can anyone refresh us on those details?

Newsperson

 

[RadioStarOne]

Re: KQLO / RENO SHUTDOWN BY IRS? The 780 formats....

When 780 KROW signed on the air they were a Star Station affiliate.

 

[newsperson]

RadioStarOne;

Do you mean that when 780 KCRL changed its call letters to KROW they started out as a Starstation format and not country?

When did they change to Country? What year did they drop country in favor of news-talk? 1993 or 1994?

KCRL 780 signed on around 1971 as a classical format. Citadel seems to flasely claim that their station (KKOH 780)has been around since 1922 and we know that is not true.

Only the current KPLY AM 630 has been around since 1922.

Citadel loves to distort the facts don't they?

Newsperson

 

[RadioStarOne]

KOH was on 630 prior to Citadel buying the 780 station and changing the calls to KKOH and the change to News/Talk. So I guess it could be said the the call letters have been in Reno since 1922, but I don't know about the year or frequencies used since then. I remember listening to KOH back in the summer of 1968 and hearing Durwood Kirby (Candid Camera Fame) doing a top five (or something like that) feature on the CBS Radio Network or was it Mutual Radio Network? Hows that for a time capsul bit? Anybody remember that feature? But from 83-86 I worked for that station in the foothills with the Star Station Format and I remember listening to KROW while out driving in the valley after reading in the trades that the legendary? KROW calls were put on a Reno radio station. The format didn't last too long on the station before the switch to country but a look in a Broadcasting and Cable Yearbook would tell the tale on the calls history.

Durwood Kirby how many of you even remember who he was? When you least expect it, you're elected your the star today, SMILE! Your on Candid Camera! Sorry couldn't help myself...lol

 

[davideduardo]

KOH was on 630 prior to Citadel buying the 780 station and changing the calls to KKOH and the change to News/Talk. So I guess it could be said the the call letters have been in Reno since 1922, but I don't know at the year or frequencies used since then.

The first reference I see to KOH or any station in Reno is in the post-reassignment of frequencies in the 1929 White's Radio Log where it was a 100 watter on 1370. None of my lists from 1926 to 1929 show any active Reno station.

http://www.davidgleason.com/Radio_Archives.htm has over 100 listings of radio stations from 1926 to the mid-70's.