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TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Jim DellaLonga, Director of Economic Development SUBJECT: Receive and file an update regarding the termination of Lease Agreement AFN 698.1 between Bulletin Displays, LLC and the City of Bellflower, for the lease of public property for digital outdoor advertising.
DATE: June 12, 2023
EXECUTIVE SUMMARY
In September 2018, the City Council approved a lease agreement with Bulletin Displays, LLC (Bulletin Displays) for the lease of public property for the construction, operation and revenue share of digital billboard advertising at five locations in the City.
Due to a lack of perFormance by Bulletin Displays, under Section 10 of the Agreement, the Agreement became null and void.
RECOMMENDATIONS TO CITY COUNCIL
1) Receive and file the update regarding the termination o# Lease Agreement AFN 698.1; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None. It was anticipated that the Agreement might result in annual rent of $75,000 for each of the three freeway locations and $30,000 for each of the two street locations, or 25% of the gross revenue for each location, whichever was greater.
DISCUSSION
On September 24, 2018, the City Council approved Agreement with Bulletin Displays, which allowed Bulletin Displays to use five city owned properties for digital outdoor advertising. The Agreement also required Bulletin Displays to pay annual rental fees of 75,000 for the three freeway locations and $30,000 for the two street locations, or 25% of the gross revenue for each location, whichever is greater.
Staff Report— Lease Termination AFN 698.1, Bulletin Displays June 12, 2023
DISCUSSION — Continued
A schedule of performance was provided in Section 10 of the Agreement, which required Bulletin Displays to submit an entitlement application for the required City planning and building permits within 90-days of the notification of code amendments allowing for the installation of the digital billboard. City Council approved the municipal code amendment creating the Development Agreement Zone Layover (DAZL) on August 10, 2020, which provided a mechanism to entitle the digital billboards. Bulletin Displays was notified shortly thereafter and was provided a draft development agreement on September 8, 2020. Bulletin Displays submitted an entitlement application on September 15, 2021 and was provided an incomplete letter on October 15, 2021. Nothing was resubmitted. Consequently, pursuant to Section 10, the Agreement became null and void.