Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
SEPTEMBER 17, 2026
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Motion by:
DIRECTORS YAROSLAVSKY, BASS, PADILLA, MITCHELL, AND HORVATH
Metro Offsite Advertising Motion
Metro owns some of the most visible real estate in Los Angeles County. Many of these properties are located along major commercial corridors, near rail stations, or on sites slated for transit projects or joint development.
As Metro continues to face significant fiscal pressure, the agency should evaluate responsible additional revenue-generating opportunities within its real estate portfolio. Metro’s FY27 budget reflects rising operating costs, capital demands, and lower projected advertising revenue. At the same time, Metro continues to advance major transit construction, station expansion, increased operational expenses and joint development work across the region.
Metro’s advertising program operates through contracted media partners and is governed by the agency’s System Advertising Policy. Metro does not directly sell advertising inventory. Instead, advertising revenue is generated through two contracted media agencies operating under agreements through 2030:
• Intersection - Rail advertising assets including trains, stations, digital displays, and wallscapes
• OUTFRONT Media - Bus fleet advertising (interior and exterior bus wraps)
Both of Metro’s advertising agencies have experience in selling temporary advertising for construction sites, but neither agency currently has construction sites as part of their
scopes of work.
As the agency continues to modernize advertising and commercial partnership opportunities, temporary advertising on construction walls and solid fences surrounding Metro-owned properties should be considered. The City of Los Angeles already allows and regulates signs on temporary construction walls and fences surrounding vacant lots under Los Angeles Municipal Code Section 14.4.17. The City’s framework includes permit requirements, limits on sign area and height, time limits, location restrictions, nuisance abatement obligations, notification requirements, and enforcement provisions.
Metro has a direct interest in testing whether this model could support transit service, station maintenance, public safety, other customer-facing priorities, or open streets events. A limited pilot would allow Metro to evaluate revenue potential, operational requirements, permitting issues, community impacts, and compliance needs before considering any broader program.
Subject
SUBJECT: METRO OFFSITE ADVERTISING MOTION
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RECOMMENDATION
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APPROVE Motion by Yaroslavsky, Bass, Padilla, Mitchell, and Horvath to direct the Chief Executive Officer, in consultation with any relevant County or City of Los Angeles departments, to:
A. Evaluate the feasibility of temporary advertising on construction walls or solid fencing at one Metro-owned property within the City of Los Angeles, including but not limited to the Metro-owned lots on (1) the southwest corner of Wilshire Boulevard and La Brea Avenue; and (2) relevant East San Fernando Valley line parcels. The evaluation should rank candidate sites based on financial feasibility and identify any additional properties that may be well suited for this use;
1. This evaluation should include an estimate of gross advertising revenue, projected net revenue, vendor costs, maintenance costs, permitting costs, enforcement costs to determine whether the program is likely to generate net revenue sufficient to justify implementation. If the analysis shows promise, identify options for dedicating net revenue to Metro priorities such as station maintenance, public safety, graffiti abatement, customer experience, construction mitigation, or service support;
B. Identify all existing policies and regulations related to advertising content, Olympic and Paralympic Games rules, public agency advertising standards, land use approvals, joint development agreements, federal funding requirements, or existing Metro advertising contracts; and
C. Report back in 90 days to the Finance, Budget, and Audit Committee with the findings from the evaluation, and if financially feasible, a proposed pilot framework, including recommended site or sites, legal findings, permitting pathway, revenue projections, maintenance and enforcement plan, community outreach plan, and timeline for implementation.