Thank you so much to everyone who has responded so far! This has been one of the most educational threads I've read on this site in a while. I really appreciate everyone giving their feedback and appreciate everyone sharing their knowledge. I did try to keep the initial question as open-ended as possible — while still keeping specifically to Alabama — to generate a broad array of responses.
My first question is "What are they doing now and how well does that work?"
Second question: Is there room for improvement, and if so, given the state of local radio, the listener and advertiser base in the town, the condition of the facility and other listening options, is it likely to attain that improvement?
Third question: How much will it cost to attain that improvement? Equipment, repairs, promotion?
Michael, you offered a ton of useful advice, but I want to focus on these three questions. I'd say, in a typical smaller Alabama town, the station is either going to be voicetracked or a music jukebox, but also with a reasonable local spot load. There is definitely room for improvement in both the programming (lack of locality) and in the transmitter plant itself. That seems to be all too sadly common outside of our major metros. Stations that are more or less afloat but doing so on borrowed time with some maintenance being neglected.
Find some religious broadcaster. You can probably sell the station for more than it's worth.
For the sake of argument, let's say this is not a viable option because it's an area that's already saturated with a mix of noncommercial religious broadcasters, on both AM and FM, some locally licensed and some not, but all satellite-fed and not local. This is extremely common everywhere in the state already.
I work for a station that was insignificant 15 years ago and high on the AM dial. With a translator, the station is consistently #1 by a longshot. In my years here, 1 in 8 listen and an average 1/3rd of radio listeners. We're ultra local. Local news, weather, high school sports. If some event happens, we're there. Totally voice-tracked. I was told by KOTO in Telluride, Colorado when they were a 10 watt FM the plan was to involve someone in every home with the station. The idea was if they could reach one person, they had a household that was aware of KOTO and likely listened. To bolster that, they placed fish bowls at store counters for customers to give their change to KOTO because it produced money and the station logo was seen everywhere in town.
Warning: My owner told me he went 5 years without a paycheck building the station to the point he could get a paycheck from the station.
Doing all that work, do you think the station would have seen even a fraction of its success if it lacked the FM translator? I hear a lot of radio people say that "people will listen if the content is compelling, even on AM" but I am not sure that's true anymore outside of a few high powered big city stations.
I'd only accept it if it was an FM station. If it were an AM station, even with a translator in a smaller town, I wouldn't. I'd also get to know the local emergency services chiefs or community liason officers (not every police department has one but they're becoming more popular), so you could possibly get more info than what's in dispatch reports if there's a fire, robbery, etc.
Any particular reason why you'd pass on an AM with translator? I know plant maintenance for a directional array is insane and the people with the knowledge to keep them running well are few and far between, but the majority of small town AMs with translators are pretty simple setups with one tower and the translator on said tower.
Unfortunately some emergency services departments have gone to encrypted communications and have changed their public facing websites with reports that just give the bare bones information of where a call was dispatched and a few words for the reasons, knowing local news has been so hollowed out that nobody is going to bother trying to sue the city to get access to the full written emergency dispatch reports, so their attitude seems to be, "you get what you get and kick rocks if you don't like it".
As a lifelong scanner enthusiast I can certainly relate to this, but luckily, at least in Alabama, many of the smaller town public safety offices are still unencrypted. They're just scattered out on multiple digital systems that may require an expensive scanner to monitor. Just where I live we have a P25 phase 2 trunked system, a NXDN trunked system and several standalone P25 phase 1, DMR and a few analog holdouts. It's a mess.
It's also been my experience that outside of bigger cities, police don't even really post anything online at all about crime statistics or incidents. Small town police Facebook pages tend to be hit and miss for content, the same as small town radio station Facebook pages. I know far too many of each that are just "one post every 6 months with 1 like", showing a total lack of engagement or effort.
Based on the description in the first post, it sounds just like a station where I worked and being sold out to a religious broadcaster is what happened (not long after I moved on). The same thing happened to other stations in the region that match the description. Now all they do it take religious programs off a satellite.
I'm not one to yuck anyone else's yum, but the sheer number of religious broadcasters in Alabama who just pull programs off the net or satellite is disheartening. Now, granted I live in a larger metro area, but there's only one locally owned/operated/programmed religious station in this entire area. Two if you're willing to count a far-far-far rimshot from outside the DMA. Even the LPFMs owned by churches have zero local programming. The simple opportunity of broadcasting their own services live? Nope, too much work I guess.
But for the purposes of this discussion we'll say that all the religious bases are covered so selling or doing that format aren't an option.