In a November article, with Richard Rothfelder, on a 55 year look at the Houston billboard market, Insider expressed our surprise that there was no discussion of digital billboards.  Rothfelder indicated that unlike many cities across Texas and the country, Houston still doesn’t permit digital displays for off-premise signs.  A follow up email from Richard this week indicates that Houston is changing their mind on digital billboards.

Proposals are due by December 30th as the City of Houston is soliciting proposals, from qualified entities, to install double sided digital message display signs to be located at sites within city limits in the city right of way or on city property.  You can see a copy of the RFP at this link.

While the City does not provide a specific number of signs, they are indicating that City approval for each site will be required.

How big is the City of Houston thinking?  Here are some details on the proposal.

• Revenue to the City –  “For context, the City seeks an initial fee of no less than $10 million plus annual fees of $2 million or 40% percent of revenues, whichever is greater.”
• Condition for Installation of Digital Signs – “For each digital sign it erects, Vendor(s) will remove, at a minimum, three static billboard structures in the City of Houston city limits. Vendors are encouraged to propose higher removal ratios.”
• Right to Display Messages – “The City shall have the right to display City messages for at least 10% of the total display time and the ability to preempt Vendor’s advertising during declared emergencies.”
• Contract Length – “The successful proposer(s) may receive a 15- or 20-year contract, as negotiated.”

In a climate where cities are seeking new revenue sources, this would be a win for the Houston community.  The assistance digital messaging provides to an urban community is already well documented. The ability to add digitals while reducing the overall number of structures in the city makes sense.

The City of Houston’s time schedule estimates notification of Intent to Award on March 5, 2021, City Council Approval on April 30th and a Contract Start Date in May. Insider imagines that Scenic Houston and other community groups will want to provide their input.  We will monitor the process and provide updates as they are available.

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