The overview
Known as the Loop 1604 Urban Sign Corridor Plan, the ordinance allows city officials to negotiate with prospective bidders to construct three digital billboards within the Loop 1604 corridor.
City Manager Bill Hill said city attorneys have been working with the landlord Rogers Chevron Ranch on the terms of the lease.
“The lease is a draft and the agreement has been signed by the landlord’s representative Bitterblue Group. [The agreement is] awaiting consideration from the City Council,” Hill said.
Hill said the agreement sets forth an initial 25 year lease, extending 25 years up until 99 years, and includes a monthly rent payment from the city of 50% of all revenue minus deductions.
Additionally, city officials said rent from the city will cease if payments from the subtenant stops.
Sign locations:
- Near the intersection of Loop 1604 and Northwest Military Drive
- Near the intersection of Loop 1604 and Paesanos Parkway
- Near the intersection of Loop 1604 and Napier Park
The digital billboards also need to meet a series of city requirements.
After a short executive session, city council voted 4-0 to proceed with the plan, with Alderman Lee Powers absent.
The options
Hill said prospective billboard partners have been narrowed down to Lamar Advertising Company, Outfront Media, Clear Channel Outdoor and Kenjoh Outdoor Advertising. These companies were ranked according to four criteria.
Ranking criteria:
- Company’s ability to construct, operate and maintain digital billboards
- Company’s experience with large, multiple digital billboard development
- Alignment with design requirements and Shavano Park aesthetic
- Financial contractual terms and projected revenue
Upon city officials’ recommendation, City Council chose to move forward with Lamar Advertising Company.
Going forward
The city will enter into negotiations with Lamar Advertising Company and keep Outfront Media as an alternate in case the terms with Lamar are unacceptable.
The final agreement will be signed by Mayor Bob Werner.
