Large Format Digital Electronic Signs on
City-Owned Property
City Council
Item 8.7
June 17, 2025
Blage Zelalich, Deputy Director
City Manager’s Office of Economic Development and Cultural Affairs
Kevin Ice, Assistant to the City Manager, Director of Real Estate City Manager’s Office of Economic Development and Cultural Affairs
2 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 freeway-facing signs. December 2022: Phase 1 – Notice of Intended Award to Orange Barrel Media for six signs on five downtown City-owned sites.
March 2023: Phase 2 - Notice of Intended Award to Clear Channel Outdoor, LLC for Hwy 87 and W. Mission St. and 1404 Mabury Rd. sites and Outfront Foster Interstate, LLC for Hwy 87, 65 feet north of Willow St., pending project-level environmental clearance. February 2025: City Council approved Phase 1, signs in downtown core. Today: City Council action on Phase 2, freeway-facing signs.
3 Media Company Background
Clear Channel Outdoor, LLC
Bay Area roots dating back to 1901
Longest-serving outdoor advertising company in
California
200+ municipal contracts and 16 transit contracts in
the United States
370 airport contracts worldwide, including San José
Mineta International
Outfront Foster Interstate, LLC
Joint venture of Outfront Media LLC and Foster
Interstate Media Inc. formed in 2018
Outfront Media operates 56 digital billboards in the
Bay Area, 2,300 nationwide
Foster Interstate is a leading developer of billboard projects throughout the United States
Outfront Media is publicly traded with $6.9B
Enterprise Value, $1.8B Revenue, $302M Cash Flow
Hwy 280, Daly City
US 101, Santa Clara
4 Environmental Analysis and Public Notice
February 2024 - January 2025: Project-level Initial Study/Mitigated Negative Declarations for Electronic Signs on City-Owned Property - W. Mission St., Mabury Rd. and Willow St. prepared. February 5 - March 7, 2025: Public circulation of CEQA documents for Willow St. site. February 12 - March 21, 2025: Public circulation of CEQA documents for the W. Mission St. and Mabury Rd. sites.
No comments received raised new issues about either project's CEQA impacts or provided substantial evidence supporting a new or more severe impact that would change the conclusions disclosed in the IS/MNDs.
May 2025: A notice of the public hearing was published in the San José Post - Record on May 7, 2025 and mailed to owners and tenants of all properties located within 1,000 ft. of each proposed sign on May 9, 2025.
June 6, 2025: City posted Response to Comments documents for both projects online to respond to comments received during circulation of environmental documents.
Site Location: Clear Channel Outdoor, LLC
Hwy 87 and W. Mission St.
5 Single-faced proposed billboard, view north
Site Location: Clear Channel Outdoor, LLC
1404 Mabury Road
6 Photo 2 - Proposed billboard, view west
Photo 1 - Proposed billboard, view east
Site Location: Outfront Foster Interstate, LLC
7 Hwy 87 and Willow St.
View 2
View 3
View 1
Proposed Sign Designs
Clear Channel Outdoor, LLC
8 Clear Channel Outdoor, LLC OutFront Foster Media
9 Key Lease Terms
Term
Initial term of 10 years.
Two additional five-year periods, at City's option.
Companies must meet renewal criteria.
Companies cannot transfer ownership of the signs without City approval.
City will assume ownership of signs in the event of
abandonment.
Rent
Payment to the City shall be a percentage of gross revenue, established via RFP responses.
Clear Channel paying 45% of gross revenue.
Outfront Foster paying 40% of gross revenue and $100k start up fee.
Payments must meet the Minimum Annual Guarantee.
MAG escalates starting in year 6.
Outfront Foster paying higher annual escalation rate.
Denver Theatre District
Atlanta, GA
I-880, Oakland
US 101, San Carlos
10 20 Year Revenue – Minimum Guarantee and Lessee Projections Location
20 Year Total
Minimum
Guarantee
to City
Years 1–10
Minimum
Guarantee
Extension 1
Years 11–15
Minimum
Guarantee
Extension 2
Years 16–20
Minimum
Guarantee
20 Year Total
Projected
Revenue Share
to City
Hwy 87 and
W. Mission St. $4,980,643 $2,267,787 $1,289,331 $1,423,525 $6,459,784 1404 Mabury Rd.
(double-sided sign) $8,999,220 $3,573,508 $2,578,662 $2,847,051 $12,919,567 HWY 87 and
Willow St.
(double-sided sign)
$7,398,690 $3,325,000 $1,886,601 $2,187,088 $8,650,000
Total $21,378,552 $9,166,294 $5,754,594 $6,457,664 $28,029,351 11 Key Lease Terms - General Sign Operations
Sign operation must abide by City Council Policy 6-4. Prohibits illumination between midnight and 6:00 am.
Prohibits motion.
Certain content prohibitions.
Media company is responsible to pay for all utilities, maintenance, repair, and site restoration. Requires graffiti removal within 48 hours and all other repairs within 7 days of notice.
Signs will be independently metered and powered using 100% renewable energy. City will receive free use of 12.5% of time to present non-commercial messages. City shall control use of the signs in any local, state, or national emergencies. 12 Key Lease Terms - Advertising Content Prohibitions
Violence, unlawful goods or services, unlawful conduct, demeaning or disparaging material. Profanity, obscenity, nudity, or “Adult” goods or services. Alcohol, firearms, tobacco, or cannabis related products. False, misleading or deceptive content.
Political content.
Religious content.
Content adverse to the commercial interests of the City; or that disparages the City. City graphics, logos or representations without City’s express written consent. 13 Community Benefit
Billboard removal at 6:1 ratio
Clear Channel Outdoor proposes
takedown of 12 structures, 19 faces in
CD 1,3, 4, 5, 6 and 9 and proximate to
CD 7
Outfront Foster proposes takedown of 12
structures, 16 faces, in CD 3, 5, 6 and 7
Requirement for existing signs to be
taken down before or at the same time as
installation of new signs
Tree replacement at 5:1 ratio
Potential removal of two trees at Hwy 87
and W. Mission St.
Ten replacement trees will be planted
14 Staff Recommendation
Adopt a resolution certifying the Initial Study/Mitigated Negative Declaration for the signs on the West Mission Street and Mabury Road Road sites;
Adopt a resolution certifying the Initial Study/Mitigated Negative Declaration for the sign on the Willow Street site;
Adopt resolutions authorizing the City Manager, or her designee, to negotiate and execute lease agreements with Clear Channel Outdoor, LLC and Outfront Foster Interstate, LLC.
Large Format Digital Electronic Signs on
City-Owned Property
City Council
Item 8.7
June 17, 2025
Blage Zelalich, Deputy Director
City Manager’s Office of Economic Development and Cultural Affairs
Kevin Ice, Assistant to the City Manager, Director of Real Estate City Manager’s Office of Economic Development and Cultural Affairs