From the Totally Obscure Facts Department:
Throughout most of the 1960’s, KAAY held an FCC Construction Permit for an FM station on 98.5 with the call letters KAAY-FM, but never actually put the station on the air. In early 1971, they let the CP go back to the FCC. Whether that was a local or corporate decision, I have no idea. The KAAY sales manager at the time, Joe Dickey, seized on this as an opportunity, and hooked up with Danny Garner, at that time the owner of Carrousel Attractions, the local rock concert promoter.
Danny provided the financing...about $150,000 including construction of studios and transmitter site, and KLAZ went on the air July 7, 1972. I just think it’s ironic, and sad, that the station which brought the FM revolution to Little Rock and started sounding the death knell for KAAY should have been KAAY-FM. Who knows? Maybe those legendary calls would live on today.