Large Format Digital Signage on
City-Owned Property
City Council
Item 8.2
February 25, 2025
Nanci Klein, Director
City Manager’s Office of Economic Development
and Cultural Affairs
Chris Burton, Director
Planning, Building and Code Enforcement
Blage Zelalich, Deputy Director
City Manager’s Office of Economic Development and Cultural Affairs
Kevin Ice, Director of Real Estate
City Manager’s Office of Economic Development and Cultural Affairs
David Keyon, Principal Planner Environmental Review
Planning, Building and Code Enforcement
2 Project Background
December 2015: City Council action to add electronic
digital off-site advertising signs to City Council Policy Priority list following a Chamber of Commerce study
mission to Denver.
2016: Staff initiates scope development, analysis, and stakeholder engagement.
December 2017: City Council directed staff to investigate removing existing barriers to off-site commercial advertising and implement a phased work plan to allow:
Phase 1: New off-site advertising on City-owned sites Phase 2: New off-site advertising for non-City-owned
freeway-facing sites citywide; additional off-site
advertising options for sites in the Downtown Sign
Intensification Zone and within the North San José
Development Area; and signage opportunities within
the public right of-way.
Denver, CO
3 Project Background
September 2018: Approval of new City Council Policy 6-4 allowing programmable signs and signs displaying offsite commercial speech on City-owned property. Staff directed to release two RFPs, one for signs in the downtown core and one for signs outside of downtown.
2019-2021: Staff efforts pivoted to Covid-19 pandemic response. February 2021: City Council directed staff to stop work on Phase 2, signage on non-City-owned property. December 2022: Notice of Intended Award to Orange Barrel Media for 6 signs on 5 City-owned sites downtown, pending project-level environmental clearance.
Denver, CO Denver, CO Denver, CODenver, CO
Denver, CO
Atlanta, GA
Denver, CO
4 Environmental Analysis
May 2023 – October 2024: Project-level
Mitigated Negative Declaration for the
Electronic Signs on City-Owned Property –
Downtown Sites conducted.
October 25, 2024 – November 18, 2024:
Public circulation of the environmental
document.
110 emails and letters received during the
public circulation period.
February 14, 2025: City posted a Response to
Comments document to respond to comments
received during circulation.
No comments raised new issues about the
project's CEQA impacts or provided substantial
evidence supporting a new or more severe
impact that would change the conclusions
disclosed in the IS/MND.
Denver Theatre District
Atlanta, GA
5 Orange Barrel Media, LLC
Founded in 2004 and headquartered in
Columbus, Ohio.
Privately-held company with 150 associates and
offices in New York and Los Angeles.
Signage assets in over 20 of the top-ranked
Designated Market Area cities in the country
including New York, Chicago, Dallas and
Houston.
Largest operator of digital out-of-home media in:
Boston
Denver
Downtown Atlanta
Washington, D.C.
West Hollywood – Sunset Strip
West Hollywood, CA - Sunset Strip
Atlanta, GA
6 Key Lease Terms
Term
The term of each lease is 10 years.
The lease will be extended for up to two additional five-year extension periods if OBM is in good standing with specified renewal criteria.
Payments greater than 120% of the Minimum Annual
Guarantee (MAG).
Rent
33% of gross revenue generated at the Market/San Pedro Garage, the Second and Carlos Garage, and the Center for the Performing Arts
30% of gross revenue generated at the Convention Center Payment to the City shall not be less than the MAG.
Negotiated MAG amounts are 25% greater than in OBM’s
proposal responses.
Denver Theatre District
Atlanta, GA
Miami, FL
Denver, CO
7 20 Year Revenue – Minimum Guarantee and Lessee Projections Location
20 Year Total
Minimum
Guarantee
Years 1–10
Minimum
Guarantee
Option 1
Years 11–15
Minimum
Guarantee
Option 2
Years 16–20
Minimum
Guarantee
20 Year Total
Projected
Revenue Share
Center for the
Performing Arts
(2 signs)
$8,722,292 $3,827,075 $2,267,066 $2,628,151 $15,595,313 McEnery
Convention Center $6,728,625 $2,952,315 $1,748,880 $2,027,431 $9,924,106 Market/San Pedro
Garage $3,115,104 $1,366,812 $809,666 $938,625 $8,945,959 Second and
San Carlos Garage $2,492,083 $1,093,450 $647,733 $750,900 $3,046,413 Total $21,058,104 $9,239,652 $5,473,345 $6,345,107 $37,511,793 8 Lease Terms - General Sign Operations
Sign operation must abide by City Council Policy 6-4. Prohibits illumination between midnight and 6:00 a.m. Motion, or any effect that gives the appearance of movement is not permitted. OBM is responsible to pay for all utilities, maintenance, repair, and site restoration. City will receive free use of 15% of time to present non-commercial messages. City will receive all unsold advertising time to present non-commercial messages. Typically, 10% to 35% of the total time
City may assign its messaging time to promote events at Team San Jose-managed facilities. City may exercise “black-out” periods prohibiting competing advertising for any national or international championship event, three times in a five-year period.
City shall control use of the signs in any local, state, or national emergencies. 9 Advertising Content Prohibitions
Violence, unlawful goods or services, unlawful conduct, demeaning or disparaging material Profanity, obscenity, nudity, or “Adult” goods or services Firearms, tobacco, or cannabis related products
False, misleading or deceptive content
Political content
Religious content
Content adverse to the commercial interests of the City of San José; or that disparages the City City graphics, logos or representations without the express written consent of the City 10 Site Specific Considerations
The Tech Interactive – Not Recommending Lease Approval Provision in Tech Interactive’s lease gives them exclusive use/control of the site with certain exceptions carved out for City use.
City use does not include placement of signage on the exterior of the building. Concessions offered to the Tech Interactive did not result in agreement to install a digital sign with off-site advertising on the building.
Staff recommendation is to proceed with CEQA site approval but not to pursue digital signage at this location.
Center for Performing Arts
Building name incorporated into the two on-site signs. No advertising allowed that competes with the types of live performances scheduled at the Center for the Performing Arts, Montgomery Theater, San José Civic, and California Theatre to the extent the advertising promotes shows in another Bay Area jurisdiction. 11 Site Specific Considerations
San Jose McEnery Convention Center
15 total visual takeover days annually, during which CC clients shall have 100% of all advertising time on-site at no charge.
CC clients may purchase up to 15 additional days of total visual takeover at 30% discounted rate. 15 days in which advertising from competitors of designated clients will be prohibited. Market/San Pedro Garage
Contribution to an artistic sign enhancement will be re-directed toward City’s currently planned installation, Lineal by Brian Brush.
Second and San Carlos Garage
City has the right to terminate the lease at the Second and San Carlos garage in the event of a sale of the property.
If property is redeveloped, OBM to take down, store, and reinstall the sign at its own expense.
Center for Performing Arts
San Carlos St. view Park Ave. viewSign rear view 12
McEnery Convention Center
Almaden Blvd view, double-faced sign
13 Almaden Blvd view, Feelings installation
Market/San Pedro Garage
Market/St. John St. view, original proposal Market/St. John St. view, revised proposal 14 Second and San Carlos Garage
3rd Street view looking west2nd/San Carlos looking north Market/San Carlos view 15
Large Format Digital Signage on
City-Owned Property
City Council
Item 8.2
February 25, 2025
Nanci Klein, Director
City Manager’s Office of Economic Development and
Cultural Affairs
Chris Burton, Director
Planning, Building and Code Enforcement
Blage Zelalich, Deputy Director
City Manager’s Office of Economic Development and Cultural Affairs
Kevin Ice, Director of Real Estate
City Manager’s Office of Economic Development and Cultural Affairs
David Keyon, Principal Planner Environmental Review
Planning, Building and Code Enforcement