Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
SEPTEMBER 19, 2018
Subject
SUBJECT: LICENSE AGREEMENT WITH CLEAR CHANNEL OUTDOOR FOR CONSTRUCTION AND OPERATION OF A DIGITAL BILLBOARD ON METRO PROPERTY
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the CEO to execute a license agreement with Clear Channel Outdoor for a digital billboard on Metro Parcel 7406-026-915 for a term of thirty years upon commencement with guaranteed revenue of $4,365,000.
Issue
ISSUE
The digital billboard will replace a Clear Channel Outdoor static board on a Metro property adjacent to the northbound side of the Harbor 110 Freeway (see Exhibit A) in the City of Carson. The proposed license agreement will grant a fixed 30-year term to Clear Channel Outdoor after which time Metro can cancel the license and instruct Clear Channel Outdoor to remove infrastructure without cost to Metro.
Background
BACKGROUND
The existing static billboard predates the agency's acquisition of the land in the early 1990s from the Atchison-Topeka Santa Fe Railroad. At the time, billboards existing on railroad land were assigned to the Los Angeles County Transportation Commission. The assignment includes the associated revenue for licenses but also obligates Metro as landowner to terms and conditions contained within the license agreement at the time of assignment. These terms and conditions include:
* Undefined period for license holder
* Potential for payment of any lost revenue from cancellation of the licenses
* Potential for costs to relocate the billboard to a site of equivalent revenue earnings
* No definition of acceptable content for advertisements.
The license agreement before the Board today will provide a definite time horizon for the license with a term of 30 years and will allow Metro to terminate without significant outlay of capital.
Discussion
DISCUSSION
This billboard will continue Metro's efforts to remove and replace static billboards wi...
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