• San Carlos to approve new digital billboard.

    Proposed site for Clear Channel Outdoor Billboard at 815 American St, San Carlos, CA

    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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