Comparison of Billboard Proposals
Brendan Moriarty, Real Property Asset Manager, City of Oakland Community & Economic Development Committee
May 23, 2023
Process
● Resolution 88463, December 2021
● Planning Commission and Zoning Update Committee
● Stakeholder meetings
● Oakland Billboard Economic Development Coalition
● Initial Outfront proposal
● City hired billboard consultant
● Three current proposals
○ Becker-Outfront
○ Clear Channel Outdors
○ Champion Outdoor
Map of Locations
Policy Objective
● Maximize support for the Coalition and the City
● By matching Coalition and City with the proposal that generates the most support
Proposal Comparison
Faces Revenue/
face
Revenue/
year
Escalation Term Takedowns
(SF)
Becker-
Outfront
20 $75,000 $1,500,000
1 4.5% every five
years starting in
year 11,
equivalent to 0.6%
annually
31 years +
10 year
option
0.18:1
Clear
Channel
18 $128,333
2 $2,310,000 2.5% annually 30 years 4:1 to 2:13
Champion 10 $85,0004
($125,000 if new
Ordinance)
$850,000
(1,250,000 if
new Ordinance)
3% annually 25 years 2:1
(none if new
Ordinance)
Revenue Comparison
● Substantially more revenue in the Clear Channel proposal ○ Greater starting point ($800,000 more in year 1)
○ Greater escalation (2.5% vs 0.6% annually)
Total revenue
over Extended
Term
Total revenue
over Base
Term
Annual
revenue in year
1 Annual
revenue in year
30 Annual
revenue in
year 41
Becker-OFI $68 million $49 million $1.5 million $1.8 million $2.0 million Clear
Channel
$156 million $101 million $2.3 million $4.7 million $6.2 million
Free Advertising
● Similar offerings
● Becker-Outfront offering one guaranteed free advertising spot on each face (12.5% of 20 faces guaranteed)
● Clear Channel offering one free advertising spot on each face, subject to availability, as well as on all existing digital faces in Alameda County (12.5% of 35 faces estimated)
● Champion offering free advertising spot on each face, subject to availability, with a minimum guarantee of 10%
Visual Impact
● Less visual impact in Clear Channel proposal
● Fewer new signs: 2 new structures vs. 10 new structures ● Much more takedowns:
○ 76 large faces vs 50 small faces
○ 20,664 SF vs 2,750 SF
○ 244% reduction in ad space vs 555% increase in ad space citywide Location Considerations
● Locations of concern with both proposals
○ 2 Clear Channel locations are in residential areas
○ 2 Becker-OFI locations in residential areas
○ 1 Becker-OFI location has potential driver safety consideration ● May be remedied through further discussion and substitution of alternative sites
Policy Alternatives
2. Authorize Becker-Outfront relocation
agreements
$1.5 million/year to Coalition & City
Growing at 0.6% annually
$88 million less over lifetime
Fixed 12.5% free advertising
Greater visual impact
4. Authorize a combination
Combine portions (not all) of proposals
Multi-party negotiation
Individual terms likely won’t hold
Outcome uncertain
1. Authorize Clear Channel relocation agreement
$2.31 million/year to Coalition & City
Growing at 2.5% annually
$88 million more over lifetime
Estimated 12.5% free advertising + countywide
Lesser visual impact
3. Require better terms from Becker-Outfront
Substantial increase in revenue/face and annual
escalation
Staff unsuccessful negotiating for this to date