Last week the East Lansing City council approved an Amended Settlement and Release Agreement with Adams Outdoor to resolve several matters relating to  three Adams lawsuits over digital billboards.  The lawsuits were settled in 2019 but the amended settlement agreement addressed open items.    The amended settlement includes:

• One 14′ by 48′ double-sided billboard and one 12′ by 24′ double sided billboard on city property at Coleman Road and US 127 in East Lansing.  The billboards can be either static or digital.  The billboards carry 10 year lease terms with a 10 year option by Adams to renew.  Annual rents are $3,000 per static face or $8,000 per digital faces for the 14′ by 48′ billboard and $1,500 per static face or $5,000 per digital face for the 12′ by 24′ billboard.  Rent inflates by 1.5% per year.
• One single face 12′ buy 24′ billboard on property East Lansing leases for its Water Resource and Recovery Facility near I-496.  The billboard will have a 10 year term, extendable at Adams option for an additional 10 years.  Annual rent is $2,500 for a static face, increasing to $6,000 for a digital face.   Rent inflates by 1.5% per year.
• One permit for a 14′ by 48′ digital billboard at 2660 East Lansing Road on the Saginaw Highway.
• Adams will pay a one time permitting and license fee of $15,000 for the four sites.
• Adams is given the right to receive the first three digital billboard permits in the city’s DDA District if East Lansing permits digital billboard in the district.
• Adam gives East Lansing immediate access to digital faces for emergency messaging.
• Adams will donate one spot on each digital face on a space available basis to the city to post promotional messages and community announcements.

Billboard Insider’s take:  Note the annual rent appreciation of 1.5%/year.  Expect sophisticated landlords to start asking for annual rent inflators, especially now that inflation is up.

[wpforms id=”9787″]

Paid Advertisement