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The Sale of Expiring Construction Permits

R

robroy

Hopefully someone has an answer for me on this. I have heard of Christian ministries doing the following, and just wonder why it's allowed by the FCC. Many radio stations are being transferred from one ministry to another just before the CP expiration date. The FCC rules clearly state that the FCC granting and the parties' consumation of the sale both need to occur BEFORE the CP expiration date. How can there be exceptions to this rule by the FCC when the rule says otherwise? For instance, Edgewater Broadcasting filed on April 14 to transfer to them an FM CP licensed to Romney, West Virginia. THE CP EXPIRES THE NEXT DAY - APRIL 15!! The application (review it on FCC website) says something about how the parties to this application confirm to consummate the transaction BEFORE the permit expiration date, according to the FCC Public Notice in force from April 7, 2009. Obviously, NO WAY this happens in a day! What about the necessary 30 day public objection period before the CP expires? What's going on with this?
 
I thought I read somewhere that the FCC was allowing extensions of CP's in cases where the CP is sold to a second party and that party lacks adequate time to build the CP. I can't recall the source of this and can't guarantee it's not part of a daydream I had while sitting in traffic and inhaling exhaust fumes. :)
 
No, you recall correctly. :D

The 36-month initial CP can be (and often is, now) extended an additional 18 months if the station is sold to a qualifying small business or minority entity.
 
Yes, an additional eighteen months can be granted to the next CP owner but only, according to the FCC's own rules I touched on in my initial post, if the sale is granted by the FCC and closed before the deadline of the original construction permit's expiration date. Basically, what I'd like to know is why would parties (like in the West Virginia scenario I first described) even file for a transfer when it will be too late to have everything regarding the sale be completed by that original CP deadline?
 
The FCC has an exemption for qualifying "small business" entities. This is a real benefit when the original entity can't or won't build. Sometimes this becomes a game in that the real owner removes himself from another entity to allow additional time then re-installs himself after the shell game transfer takes place.'

Changes in March at the Commission indicate this will no longer be allowed as this has turned into a game. From the appearance of this taking place after March I would say things may not have changed.
 
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