Seems like an odd choice since the market has never been able to support 2 oldies stations for very long...
If they try 50s-60s oldies, the audience for that has aged out the demos advertisers want (thus the mass shift of oldies stations like KLUV away from it over the last couple of years).
If they opt for less-old stuff, they'll end up playing the same thing as KLUV does now. If they lean a little more rock, it'll be a classic hits outlet like the old KRRW, which again runs into the same problem as KRRW of being squeezed on one side by KZPS and the other by KLUV...
I think it would be interesting to relaunch the country format into something more interesting -- either classic country or Americana. Based on their performance with signals that each basically cover only about a 1/4th of market, either KTFW 92.1 or KHYI 95.3 would clearly do better than what KTYS is doing on the 96.7 facility.
Or maybe try AAA again...KKZN was a pretty mediocre station and 93.3 a poor choice for a facility with that format. If done right, the format might be more viable on something like 96.7.