Last week out of home leasing and development expert Andy Goodman talked about how cities and land owners are asking for signing bonuses and rent increases. Today he talks about three types of builds which are exempt from the California sign code.
What’s new with California Billboard Regulations?
Caltrans is increasingly making it difficult for both established and new billboard companies to operate. Speaking for myself—not the industry at large—I believe Caltrans is now interpreting longstanding billboard laws in ways that diverge from their original intent and historical enforcement. Rather than applying the law as written, they seem to be relying on ambiguous interpretations that benefit their position. It feels as though Caltrans is effectively telling the billboard industry, “If you don’t like it, sue us”—a stance that runs counter to how government should operate.
Exemptions from Sign Code Regulations
University Property
A local university in Southern California recently had a billboard company install two double-faced digital billboards along the freeway without obtaining approval from the local municipality. At the time, local regulations prohibited digital signage. The university bypassed the city entirely and moved forward, which generated significant tension between the city, the university, and the billboard company involved.
Tribal Lands
Tribal lands are sovereign and thus exempt from both local and state billboard regulations. I’ve had extensive experience building billboards on tribal property across Southern California during my time with Martin Communications and CBS Outdoor. Generally, my interactions with tribal governments have been positive. However, there are two notable challenges:
- Many tribes insist on a 30-day termination clause, meaning they can require removal of the billboard with just 30 days’ notice at any point during the lease.
- Some tribes also require ownership of the billboard at the end of the lease term, so it’s crucial to negotiate a solid lease agreement.
MTA Properties
A decade of two ago, MTA (Metropolitan Transportation Authority) properties were exempt from both city and state billboard regulations. Several billboards were installed on MTA land, which sparked controversy. In response, Caltrans revised the regulations, effectively removing MTA’s exemption.
You can reach Andy at Andy goodman.age@gmail.com or 310–721–8422.
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