2025-01063 Railyards Special Sign District (M25-005) & Subdistrict 3 Digital Billboards (M25-010) — Law and Legislation Committee, October 14, 2025

City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01063 10/14/2025
Railyards Special Sign District (M25-005) & Subdistrict 3 Digital Billboards (M25-010) File ID: 2025-01063
Location: Sacramento Railyards Special Planning District, District 4 Recommendation: 1) Review an ordinance deleting and adding section 15.148.193 of the Sacramento City Code, relating to signs in the Railyards; and 2) pass a Motion forwarding the ordinance to City Council for consideration
Contact: Matthew Sites, Senior Architect, AIA, LEED AP, (916) 808-7646, [email protected]; Bruce Monighan, Urban Design Manager, (916) 808-5260, [email protected], Community Development Department Presenter: Matthew Sites, Senior Architect, AIA, LEED AP, (916) 808-7646, [email protected], Community Development Department Attachments:
1-Description/Analysis
2-Ordinance, Clean
3-Ordinance, Redline
4-Planning and Design Commission Resolution 2025-0002
5-Staff Presentation
Description/Analysis
Issue Detail: On April 8, 2025, City Council recognized the strategic and economic importance of establishing a Railyards special sign district by passing a motion directing the Interim City Manager or designee to prepare for City Council consideration an ordinance establishing a Railyards special sign district which would also allow for limited future construction and operation of digital billboards.

The allowance of limited digital billboards would support the success of a privately funded major- league sports facility and other private development in the Railyards addressing gaps in the urban fabric and complement adjacent special planning districts. Building on the proven success of the Entertainment and Sports Complex (ESC) special sign district around the Golden1 Arena, the Railyards special sign district offers an opportunity to extend similar signage to activate the area, reinforce the vitality of the Central Core, and advance focused redevelopment goals.

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File ID: 2025-01063 10/14/2025
The proposed ordinance replaces City Code section 15.148.193 (Railyards SPD) allowing unique signage that will enhance and strategically activate various locations within the 244-acre Railyards Special Planning District and Specific Plan. This will be accomplished through the creation of five subdistricts that will tailor signage requirements to best fit individual goals of each subdistrict while still being complementary to the overall Railyards special planning district. The ordinance before you today establishes the boundaries of the Railyards special sign district and subdistricts and authorizes up to five digital billboards in subdistrict 3. In the future, staff will bring forward one or more ordinances that will provide sign regulations for each of the five subdistricts.

The following five subdistricts are proposed:
· Subdistrict 1 includes the Historic Sacramento Valley Station, auxiliary buildings and train platforms as shown in Attachment 2 (15.148.193.D.1).
· Subdistrict 2 includes the Sacramento Shops Historic District as shown in Attachment 2 (15.148.193.D.2).
· Subdistrict 3 includes all land holdings of Downtown Railyards Venture (DRV) as shown in Attachment 2 (15.148.193.D.3).

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File ID: 2025-01063 10/14/2025
Proposed within subdistrict 3, would be a maximum of five digital billboards to enhance and strategically activate various locations such as freeway-oriented billboards and urban-scaled gateway entrances and focal points within the Central Business District (C-3) and Highrise Residential (R-5) zones only as shown below.
· Subdistrict 4 includes all land holdings of Indomitable Ventures including the approved soccer stadium as shown in Attachment 2 (15.148.193.D.4).
· Subdistrict 5 includes all land holdings of Kaiser Permanente as shown in Attachment 2 (15.148.193.D.5).

Staff have developed this ordinance based on lessons learned on the pilot ESC sign district and through collaboration with property owner needs and desires. This large-scale sign district will be updated based on the future development of each subdistrict. Staff are requesting the Law and Legislation Committee review the Railyards sign district ordinance including the five digital billboards withing subdistrict 3 and pass a motion forwarding to City Council for consideration.

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File ID: 2025-01063 10/14/2025
Policy Considerations: Designating the Railyards special planning district as a special sign district allows the city to develop sign regulations specific to the Railyards that would prevent uncontrolled proliferation of digital billboards while also promoting new technology to increase economic vitality for businesses; and promote public health, safety, and general welfare. 2040 General Plan
Goal LUP-8 Placemaking, Green Building, and the Arts A unique and varied sense of place, defined by distinctive natural and urban elements that contribute to local quality of life and hometown pride.

Policy LUP-8.4 Enhanced City Gateways. The City shall ensure that public improvements and private development work together to enhance the sense of entry at key gateways to the city and use gateway design to strengthen the sense of arrival into Sacramento and districts and neighborhoods within the city. Gateway design elements may include the following:
• Streetscape design,
• Signage,
• Building massing, and
• Similarly-themed design elements.

The special sign district serves as a targeted placemaking strategy, focusing new energy and uses within the Sacramento Railyards. Its creation has already supported the development of Republic FC’s soccer stadium and the reactivation of the historic Paintshop building into a live entertainment venue. Strategically incorporating limited digital billboards, within subdistrict 3, will reinforce streetscape and gateway improvements, animate the district, and create a dynamic sense of arrival into Sacramento. Combined with coordinated design elements and high-quality public improvements, these displays will enhance wayfinding, highlight key destinations, strengthen district identity, and support economic development by generating revenue for future projects. Thoughtfully sited and limited in number, they will preserve the area’s visual character, protect property values, and promote a safe, welcoming, and engaging environment for residents and visitors.

Policy LUP-8.8 Iconic Sense of Place. The City shall encourage the development of iconic buildings and sites in key locations with architecture, site planning, and landscaping to enhance gateways and create new landmarks and focal features that contribute to the city’s structure and identity.

The Railyards is one of the last large downtown infill sites on the west coast, which

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File ID: 2025-01063 10/14/2025
makes it unique and an opportunity to apply distinct solutions for City integration. The selective application of signage within the Railyards specific planning district can enhance this former industrial space into a renewed experience of activity and history.

Limited tasteful signage would further facilitate the uniqueness of the area as it would allow signage that is largely only permitted in the ESC Sign District. This could potentially provide complementary downtown beacons as wayfinding for this burgeoning area.

Subdistrict 3 is the largest defined area within the Railyards Special Planning District and is distinguished from other subdistricts by its multiple physical entry points and high visibility from surrounding areas and major transportation routes. Strategically incorporating a limited number of digital billboards at varying scales-pedestrian-friendly, tall enough for freeway visibility, or as focal points in active gathering spaces-can enhance key gateways, support wayfinding, and reinforce the Railyards’ identity as a vibrant and cohesive district.

Policy LUP-8.11 Neighborhood and Transitions. The City shall ensure that development standards facilitate transitions between areas that border one another so that neighborhoods and districts maintain their own unique qualities.

The special sign district will distinguish this area based on the ability to selectively utilize signage allowed only in the ESC Special Sign District. The ordinance will grant allowances for different signage within specific subdistricts to help further delineate the transition into the district and visually articulate the importance and use of each subdistrict.

As the hub of the Railyards, Subdistrict 3’s utilization of digital billboards enables a distinct district aesthetic that identifies not only the identity through the type of sign but scale that isn’t allowed elsewhere.

Sacramento Railyards Specific Plan
The project site is located within the Sacramento Railyards specific plan area, which envisions a dynamic 24-hour mixed-use, urban environment. This environment will provide a broad range of complementary uses, including cultural, office, hospitality, sports and entertainment, retail, healthcare, educational, and open space, along with a variety of housing products, including affordable housing. The Railyards specific plan also aims to protect the historic integrity of the site while fostering connectivity between districts through a pedestrian-friendly environment that integrates a wide mixture of uses. One important aspect of this connectivity is providing wayfinding or landmarks that can be seen by both pedestrians and visiting vehicles as they navigate the area.

Various types of signage have been used historically to assist with this conveyance and integrate

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File ID: 2025-01063 10/14/2025
different locations throughout cities. The Railyards could benefit from limited gateway and high- visibility signage locations that complement and enhance these areas, acting as points of interest while strengthening the fabric of the city.

Economic Impacts: Not applicable.

Environmental Considerations: In compliance with the California Environmental Quality Act (CEQA), on November 10, 2016, the City Council certified a Subsequent Environmental Impact Report (SEIR) (Resolution No. 2016-0379) for the Railyards Specific Plan Update, KP Medical Center, MLS Stadium, & Stormwater Outfall Project. The SEIR described the requirement for a master sign program that reflects the character of each district within the Railyards. The proposed action by the Law and Legislation Committee to consider and forward to City Council an ordinance establishing the Railyards special sign district is an administrative activity, such as general policy making, and is not a project pursuant to CEQA Guidelines section 15378(b)(2) and is not subject to CEQA (CEQA Guidelines Section 15060(c)(3)). Any subsequent action to approve any signs within the sign district will be subject to appropriate CEQA Review.

Sustainability: No sustainability considerations apply to the request.

Commission/Committee Action: On July 28, 2025, the Planning and Design Commission adopted a resolution (resolution 2025-002) recommending that the City Council designate the Railyards special planning district as a special sign district with five subdistricts.

Rationale for Recommendation: Designating the Railyards as a special sign district with individual subdistricts and carefully limiting the number of digital billboards, the City can preserve and enhance its visual character, safeguard property values, protect public and private investment, prevent the uncontrolled proliferation of digital billboards, and leverage new technologies to drive economic vitality while promoting public health, safety, and general welfare.

Financial Considerations: None.

Local Business Enterprise (LBE): No goods or services are being purchased under this report.

Background: On April 8, 2025, the City Council reviewed, commented, and passed a motion directing the Interim City Manager or designee to prepare for City Council consideration an ordinance establishing a Railyards special sign district which would include the limited use of digital billboards, consistent with the procedures established in Sacramento City Code chapter 15.148 and the Council Rules of Procedure. The Urban Design Manager considered preliminary areas proposed by the developer, DRV, and had determined that the general areas were suitable to meet the City’s goals and policy direction to activate the Railyards. Staff have since prepared an ordinance to meet the motion from council and have based the ordinance on lessons learned on the ESC special sign

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File ID: 2025-01063 10/14/2025
district.

On June 10, 2025, the City Council approved definitive legal documents identified in the term sheet (Resolution 2025-0152). As part of the term sheet, the city agreed to present to the City Council for consideration amendments to the City Code to create a Railyards special sign district which would include up to five digital billboards. Staff started developing the Railyards special sign district into five subdistricts with subdistrict 3 as the focus for digital billboards. Staff continued developing the new Railyards special sign district through biweekly ownership meetings.

On June 28, 2025, the Planning and Design Commission adopted a resolution recommendation that the City Council designate the Railyards special planning district as a special sign district (Resolution 2025-0002). Since the PDC adopted the resolution, staff have developed the replacement for section

15.148.193 of the Sacramento City Code (Railyards Special Planning District) with the new overall sign district boundaries and five subdistricts to align with development and financial schedules for each subdistrict. As a side note, PDC members frequently noted concerns about potential digital oversaturation, reinforcing the need for strict limits on digital billboards citywide.

In summary, City staff have considered and included comments and directions into the ordinance from all these sources and presents the Railyards special sign district overall boundary to overlay the Railyards special planning district, which will also include five subdistricts to facilitate the unique uses of each area, the first of which includes subdistrict 3 with a maximum of five digital billboards. This approach, utilizing multiple subdistricts, will enable staff to create ordinances that meet specific timelines independently, minimizing delays for other subdistricts' needs and considerations.

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ORDINANCE NO.

Adopted by the Sacramento City Council
Date Adopted

AN ORDINANCE DELETING AND ADDING SECTION 15.148.193 OF

THE SACRAMENTO CITY CODE, RELATING TO SIGNS IN THE

RAILYARDS

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

Section 15.148.193 of the Sacramento City Code is hereby deleted.

SECTION 2.

Section 15.148.193 is hereby added to the Sacramento City Code to read as follows:

15.148.193 Railyards sign district.

A. Definitions. In addition to the definitions in sections 1.04.020 and 15.148.1170 and chapter 17.108, the following definitions apply in this section.

1. "City-leased property" means real property in which the city has a leasehold interest.

2. "City-owned property" means real property the city owns in fee.

3. "Freeway-oriented digital billboard" means a digital billboard that is oriented toward Interstate 5 and is within 660 feet of the Interstate 5 right-of-way, determined by measuring 660 feet from the edge of the right-of-way along a line perpendicular to the center line of the main traveled way.

4. "Grade" means the lowest point of elevation of the finished surface of the ground, paving, or sidewalk within the area between a building and the property line or, when the property line is more than 5 feet from the building, between the building and a line 5 feet from the building. Light wells, stair wells, and driveways will not be considered in determining the lowest point of elevation.

5. "Large entertainment venue" means a permanent building or structure that is used primarily for entertainment (such as music, cultural, performing arts, and similar events); is the primary use of the site; and has a maximum occupant load determined by the chief building official to be at least 2,000 persons, but which has fewer than 10,000 fixed permanent seats.

6. “Marquee” means a permanent, three-sided roof-like structure that projects from and is supported by a building, extending over a public right-of-way to provide shelter from the elements which incorporates signage, such as the name of the establishment or current show playing.

7. "Primary user" means the person who has the right to use the largest portion of a large entertainment venue, measured in square feet of floor area.

8. “Railyards” means the Railyards special planning district established by chapter 17.440.

9. “Railyards sign district” means the special sign district with the boundary shown on this map:

10. "Static digital display" means a sign face that displays images through the use of grid lights, cathode-ray projections, light-emitting diodes (LEDs), plasma screens, liquid-crystal displays (LCDs), fiber optics, or other electronic media or functionally equivalent technology that does not change more than once per day.

11. “Subdistrict 1” means the area of the Railyards sign district shown in subsection D.1 below.

12. “Subdistrict 2” means the area of the Railyards sign district shown in subsection D.2 below. The boundary of subdistrict 2 corresponds to the boundary of the Central Shops Historic District in exhibit A of Ordinance No. 2023-0016.

13. “Subdistrict 3” means the area of the Railyards sign district shown in subsection D.3 below.

14. “Subdistrict 4” means the area of the Railyards sign district shown in subsection D.4 below.

15. “Subdistrict 5” means the area of the Railyards sign district shown in subsection D.5 below.

B. Purpose. The Railyards sign district is intended to establish an iconic civic environment that integrates the Railyards into the downtown area by linking the Golden 1 Center and Downtown Commons to the historic Central Shops and soccer stadium through enhanced pathways and digital wayfinding. Signage is a key element in achieving this goal; therefore, this section establishes a dynamic and creative sign program for the Railyards special planning district, preserves the district’s character, implements the adopted Railyards development guidelines, and authorizes types and locations of signs that would otherwise be prohibited under chapter 15.148 (Signs) or title 17 (Planning and Development Code) -- in sum, to authorize types and location of signage that will enhance the public's overall experience at the Railyards and complement the buildings, structures, and public spaces within the Railyards. This section is also intended to protect public health and safety by regulating the type, number, and location of signs within the Railyards that might distract motorists and pedestrians or be a nuisance for the occupants of buildings near the Railyards.

C. Except as provided in this section, signs within the Railyards sign district must comply with all provisions of this chapter.

D. Subdistrict maps.

1. Map of subdistrict 1.

2. Map of subdistrict 2.

3. Map of subdistrict 3.

4. Map of subdistrict 4.

5. Map of subdistrict 5.

E. Subdistrict 1. [Reserved]

F. Subdistrict 2. [Reserved]

G. Subdistrict 3.

1. Agreements for digital billboards. Notwithstanding anything to the contrary in this chapter (including section 15.148.640) or in any ordinance not codified in this chapter (including Ordinance No. 2007-079), the city council may approve agreements that authorize the construction of digital billboards on city-owned or city- leased property within subdistrict 3 of the Railyards sign district, subject to the following provisions:
a. No more than five digital billboards may be authorized. b. Digital billboards are allowed only on city-leased property or city- owned property in the C-3-SPD and R-5-SPD zones.
c. The following provisions apply to all digital billboards other than freeway-oriented digital billboards—
i. Except as provided in subsection G.1.c.ii below, the maximum height of a digital billboard structure, measured from grade to the top of the digital billboard structure, is 70 feet.

ii. If a digital billboard is adjacent to subdistrict 2, the maximum height of the digital billboard structure, measured from grade to the top of the billboard structure, is 45 feet
iii. Except as provided in subsection G.1.c.iv below, the maximum area of each digital-display face of a digital billboard is 700 square feet, and each digital billboard may have either one or two digital-display faces, except that digital billboards in the R-5-SPD zone are limited to one digital-display face, which must be oriented away from the Railyards sign district.
iv. If a digital billboard is adjacent to subdistrict 2, the maximum area of each digital-display face of the digital billboard is 500 square feet, and each digital billboard may have up to three digital-display faces. v. The hours of operation for a digital billboard are from 6 a.m. to midnight.

d. The following provisions apply to freeway-oriented digital billboards—
i. The maximum height of a freeway-oriented digital
billboard structure, measured from grade to the top of the billboard structure, is 100 feet; and
ii. The maximum area of each digital-display face of a
freeway-oriented digital billboard is 1,200 square feet, and each freeway-oriented digital billboard may have either one or two digital-display faces. e. A digital billboard may display only a series of still images, each of which is displayed for at least eight seconds. The still images may not move or present the appearance of motion and may not use flashing, scintillating, blinking, or traveling lights or any other means not providing constant illumination. Transition or blank screen time between still images may not exceed one second.
f. The owner of the digital billboard or billboards authorized by the agreement (or an affiliate of the owner) must agree to, among other things, at no cost to the city, remove the digital billboard or billboards from the city-owned or city-leased property at the expiration of the agreement's term, which may not exceed 35 years, and restore the property to its pre-agreement condition.
g. The owner of the digital billboard must comply with all applicable federal, state, or local laws when constructing, operating, improving, maintaining, repairing, and removing the digital billboard, including the Highway Beautification Act of 1965 (23 U.S.C. § 131), the Outdoor Advertising Act (Cal. Bus. & Prof. Code, § 5200 et seq.), the regulations promulgated to implement the Outdoor Advertising Act (4 Cal.

Code Regs. § 2242(c) et seq.), and this chapter.

h. The city council must find that each digital billboard identified in the agreement satisfies the following:
i. It complies with the requirements of this section and this chapter.
ii. It is compatible with the uses and structures on the city-owned or city-leased property and in the surrounding area, including parks, trails, and other public facilities and amenities.
iii. It will not interfere with on-site access, circulation, or visibility. iv. It will not create a traffic or safety hazard.
v. It will not result in any undue or significant increase in visual clutter in the area surrounding the city-owned or city-leased property.

2. The city must comply with the California Environmental Quality Act (Cal.

Pub. Resources Code, § 21000 et seq.) before approving an agreement that authorizes a digital billboard.

3. Site plan and design review under chapter 17.808 for digital billboards is subject to staff-level review as provided in section 17.812.010.D. Deviations may be approved under section 17.808.120.

H. Subdistrict 4. [Reserved]
I. Subdistrict 5. [Reserved]
ORDINANCE NO.