Large-Format Digital Displays
Study Session
January 10, 2025
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Purpose of Tonight’s Study Session
Receive Council direction on whether to proceed with the proposed DA applications for Large Format Digital Displays at 301 Arizona Avenue and 1202 Third Street Promenade
If authorized, receive input on what community benefits should be included in DA
DA’s are negotiated contracts and therefore, Council has more discretion in imposing conditions and requirements on a project
Seek Council direction on program parameters for considering future off-site digital displays, including establishing a pilot program limiting such signage to the Third Street Promenade Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Background Information
• Signage regulations
Regulated under Chapter 9.61 of the Santa Monica Municipal Code Billboards and off-site digital advertising prohibited • City has received 4 DA Applications for Digital Signage Santa Monica Place - DA application submitted for 4 digital displays on February 7, 2024 (paused in June 2024)
301 Arizona Ave – DA application submitted for digital display on November 21, 2024
1202 Third Street Promenade – DA application submitted for digital display on January 30, 2025
1310 3rd St Promenade – DA application submitted for digital display on May 28, 2025
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Background Information
• March 22, 2000 – designation of over 100 meritorious non-conforming signs
• September 13, 2022 - Council directed staff to explore establishing a large-format digital signage pilot program at Santa Monica Place • February 7, 2024 - DA application submitted for digital displays at Santa Monica Place (paused in June 2024)
• January 10, 2023 – Adoption of Ordinance to award a franchise to BIG Outdoor for digital kiosk network
• March 25, 2025 - Emergency Ordinance to increase flexibility for signage in the Bayside Conservation District and Third Street Promenade. • May 13, 2025 - Council adopted an emergency ordinance to establish the Third Street Promenade Entertainment Zone
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Proposed Digital Displays
301 Arizona Avenue/1253 3rd Street 1202 Third Street Promenade • Approximately 820 sf
• Full motion
• On/off-site Advertising
• 24/7 operation to be dimmed at night
• Content restrictions
• Approximately 800 sf
• Full motion
• On/off-site Advertising
• 24/7 operation to be dimmed at night
• Content restrictions
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Financial Considerations for the DA’s
• One Time Contribution $500,000 per display at CofO or final building permit • Proposed 20% revenue share or Minimum Annual Guarantee (MAG) Year(s) Min Annual
Guarantee
1 $500,000
2 $750,000
3-4 $850,000/yr
5-9 $935,000/yr
10-14 $1,028,500/yr
15-19 $1,131,350/yr
20-24 $1,244,485/yr
25-29 $1,368,933.50/yr
30-34 $1,505,826.85/yr
35-39 $1,656,409.54/yr
40-44 $1,822,050.49/yr
45-49 $2,004,255.54/yr
50-55 $2,204,681.09/yr
• Potential concerns on advertising saturation (i.e., digital kiosks, other digital displays)
• Valuation Study and Fiscal Impact Study to be conducted if Council authorizes negotiations
$
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Community Content
Allocated community content (e.g. civic news, PSA, emergency notifications, cultural arts)
Proposed 20% of total annual operating time – City has latitude to decide what content should be displayed
In emergencies, City immediately may display emergency announcements
Proposal – Operator to provide curated art content in coordination with Arts Commission, subject to City approval
San Jose (2nd/San Carlos Parking Garage)
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Other DA Considerations
Terms, Other Community Benefits
Length of Agreement
• Applicant has proposed 55 years
• Other cities: 20-30 years
Urban Placemaking
• Physical improvements
• Alternatively, contributions to Business Improvement District Building Occupancy Requirement
• Applicant has proposed 50% occupancy of ground floor
• Example: WeHo – 50% of building or entire ground floor Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Potential Issues/Concerns
• Driver Distraction & Light Spillage
Can be mitigated through standards such as refresh
rates, illumination levels, restrictions on strobe/similar effects
• First Amendment Considerations and
Future Applications
Off-Site digital signage on private property is currently prohibited
Signs are protected under the First Amendment, and
regulation of off-site digital billboards is subject to Constitutional scrutiny.
Relaxing the existing prohibition may have future
implications
Denver, Colorado
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Questions for Consideration
TOPIC QUESTIONS
Terms What terms and conditions should the agreements contain (length, options for extensions, etc)?
Community Benefits
Financial • Is the proposed financial benefit structure appropriate? • Other considerations in terms of payment timing?
Community /Art
Content
• How should public art content be curated?
• As part of the community content benefit, should there be benefits for local businesses or other programs?
Other • What other community benefits should be considered? (urban placemaking, building occupancy)
Location • Are the locations for the two proposed digital displays appropriate? • Should the City establish a guiding program/policy for future applications of digital displays?
Performance
Standards
• What operating conditions should be applied to the proposed digital displays? • What other performance standards should be established (other than brightness, refresh rates, etc.)?
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Potential Pilot Program Parameters
Should the City draft an ordinance establishing a pilot program for large format digital displays on Third Street Promenade?
Staff recommends the program be
limited to Promenade based on:
General Plan consistency
Unique urban character
Minimal impacts on sensitive uses
Economic opportunity
Consistency with Third Street
Promenade Stabilization and
Vitality Plan
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Potential Pilot Program Parameters
Program Parameters
Development Agreements required to be
proposed for each proposed display
Location limited only to Third Street Promenade
(staff recommendation)
Design Standards – lighting, brightness levels
Proposal Requirements
Operational Hours – should these be
limited?
Size and Type
Proposed Community Benefits – are there
minimum categories that DA must propose?
Fiscal Impact Analysis
SUNSET BOULEVARD ARTS AND
ADVERTISING PROGRAM
City of West Hollywood
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Recommendation
1. Discuss the approach for future large-format digital signage with off-site advertising, including the adoption of an ordinance to establish a pilot program to limit this signage to the Third Street Promenade area
2. Authorize City staff to initiate negotiations with the applicant for the Development Agreements for new outdoor digital
displays located at 301 Arizona Avenue and 1202 Third Street Promenade
3. Provide direction to Staff regarding desired project parameters and approach to community benefits for both
DAs
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025
Recommended Action
Thank you!
Item 7-B
June 10, 2025
Item 7-B
June 10, 2025