The Daily Journal reports that San Carlos, California is set to approve a lease at 815 American St with Clear Channel Outdoor to permit construction of a digital billboard. Key terms of the lease include:
- A 20 year term.
- An upfront payment of $100,000.
- Lease payments equal to 30% of ad revenue with minimum guaranteed lease payments of $200,000.
- An increase in rent of 12.5% every five years. Insider notes that this is a rent increase of 2.5%/year which is above past and projected inflation.
- Allocation of one of the signs 4 week flips four times a year to the city.
- A requirement that Clear Channel Outdoor pay the city $30,000 to allow the city to buy and install a new digital sign at the city’s Adult Community Center.
- A requirement that Clear Channel Outdoor remove a static billboard at 171 Industrial Road. San Carlos requires the removal of an existing billboard for every new billboards which is constructed.
- A prohibition on marijuana, obscene, tobacco, adult entertainment or false advertising.
Insider’s take: Another city approves a digital sign to help fund city services. This is a pricey lease, but the project will generate $4.8 million over the lease’s 20 year term. “This is going to be a buffer for us to weather the storm” says the town’s Mayor.
The staff report, billboard relocation agreement and lease are on page 125-186 of the meeting packet for the August 27, 2018 San Carlos council meeting.
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