Report to Mayor and City Council
Tuesday, October 18, 2022
Discussion
SUBJECT:
Title
CONSIDER A TERM SHEET WITH 3M BILLBOARDS, LLC FOR THE PLACEMENT OF NETWORKED DIGITAL BILLBOARDS LOCATED ALONG FREEWAYS THROUGHOUT THE CITY
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I. SUMMARY
3M Billboards, LLC (the "Proposer") has made a proposal to the City for a system of networked digital billboards to be located in Carson along the freeways. There are issues to be worked out through the negotiation process, including securing (privately-owned) sites for the billboards, design and entitlement, and approval by Caltrans of their location. The City would receive fees from the Proposer for the right to locate such signs, as it currently does from all billboard owners, and such fee structure is also to be negotiated. Given the number of issues to resolve and to further the negotiation, the Mayor created an ad hoc subcommittee comprised of herself and the Mayor Pro Tem to meet with Staff and the Proposer to gather more detailed information about the proposal. The Term Sheet represents the Ad Hoc Subcommittee's recommendations outlining the major deal points to be included in a Development Agreement or other appropriate agreement to be negotiated.
The resulting agreements would be a Public Private Partnership ("P3"), with each sign subject to City Council approval.
II. RECOMMENDATION
Recommendation
1. APPROVE a Term Sheet with 3M Billboards, LLC in a form acceptable to the City Attorney.
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III. ALTERNATIVES
TAKE another action the Council deems appropriate.
IV. BACKGROUND
In 2021, the Proposer approached the City about installing four digital billboards on the District at South Bay ("157 Acre") property, currently owned by the Carson Reclamation Authority ("CRA"). The City's and CRA's ability to negotiate for a third party to take over the billboard development on the property was limited because of the rights of CAM-Carson, LLC (Simon and Macerich) and Carson Goose Owner, LLC, which are contai...
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