San Antonio City Council approves digital billboard pilot program

Program requirements and guidelines:

• Pilot term: The initiative would be a two-year pilot program, which, at its conclusion, will be evaluated by city officials to determine whether the program should be expanded.
• Display cap: There will be a limited number of digital signs allowed on existing buildings that permit off-premises advertising. The city will receive both revenue and time share on these displays.
• Art requirement: Each digital display permit must include a $100,000 monetary contribution. Additionally, art must be approved by the Arts and Culture Department.
• Size restrictions: The display size may not exceed 25% of the building’s side. Signs on regulated streets must comply with the Texas Department of Transportation’s requirements.
• Sustainability: All displays must be carbon-neutral.
• Lighting regulations: The signs must adhere to specified maximum lighting intensity standards.
• Location restrictions: The signs will be prohibited on the Riverwalk, on historically designated structures, in the river improvement overlay district and any historic areas, with approval from the Historic and Design Review Commission.
• A maximum of 10 signs citywide.
• Up to three signs in each of the eight designated areas.

District 9 council member John Courage expressed reservations about the proposed program, including that the plan was not fully approved by the Planning and Community Development Committee, the revenue share of 10% was too low, the designated districts would be too spread out to be effective and that there was no public support for the program.

He also noted that there were no provisions in place in case the program failed.

“One factor that was just mentioned that isn't considered is that if these go up and the pilot becomes a failure, or the company goes under, then they're stuck there. If there's an arrangement with the company to put them up on the building, and the owner of that building grants that permission, there needs to be something in that agreement that talks about removing those in the event that the project fails for whatever reason. Otherwise, we get a bunch of dead billboards [on buildings,]” Courage said.

District 10 council member Marc Whyte supported the proposal as it was presented. Prior to giving his approval, he questioned city officials on whether or not the signs would be near residences, or affect any San Antonians’ quality of life.

City officials said that the sign districts are not near any neighborhoods, and that any approved signs would have to meet stringent lighting and safety standards, so as to prevent any disruption.

Whyte also questioned officials regarding whether or not the city will do everything possible to restrict advertising harmful products, such as alcohol, drugs and vapes.

Though officials explained that there were limits on the kind of speech that could be restricted on billboards, the city would work to ensure that products displayed on the billboards had appropriate content.

Whyte pointed out that these funds were much needed as the city may be moving into tight budgetary times in the future.

Additionally, with an estimated budget of $1.5 million of general budget funds spent on art maintenance a year, Whyte said the funds, which would be deposited into the Hotel Occupancy Tax funding for the arts, would free up much-needed funds for other expenses.

“To me, we've got a spending problem,” Whyte said. “And I think I've been pretty clear on that, but having additional revenue created by this program could be helpful.”

The vote passed 7-3, with District 1 council member Sukh Kaur, District 5 council member Teri Castillo and District 7 council member Marina Alderete Gavito voting against the item.

Backstory

The San Antonio Development Services Department, or DSD, was first approached by Outfront Media and Urban Activation Institute to discuss the creation of art and entertainment districts that would permit digital advertising in 2022. According to city documents, the parties presented the proposal as part of the 2023 Sign Code Update process.

In March 2023, the request to create a proposal for a Digital Media and Arts Pilot Program was discussed at the March 2023 Planning and Community Development Committee, or PCDC. At the meeting the PCDC instructed city officials to continue working with Outfront Media and Urban Activation Institute to develop options for this program.

A stakeholder survey consisting of 544 respondents was conducted in March 2025 and showed that 75% of respondents were against the program, while 25% were for it.

Proposal timeline:

• March 2023: PCDC requested staff to continue working with Outfront Media and Urban Activation Institute to review and develop options for the program
• January 2024: DSD recommended holding additional community meetings over several months, engaging key stakeholders and developing potential program parameters
• March 2025: DSD presented results from stakeholder surveys, which included responses. Committee recommended staff develop 2-3 options to consider and coordinate with TxDOT
• April 2025: PCDC recommended pilot program to move to City Council for consideration