Adopt Resolution #21-131 Approving Selection of Dynamic Display Billboard Vendor for Retail Advertising on Highway 10 Near the COR

The purpose of this case is review the proposals submitted by three Dynamic Display Billboard (DDB) companies and to select a vendor(s) and process of action / selection forward. This simply selects a single vendor to begin to negotiate a contract. This does not obligate the City to anything at this time. Terms of a contract would be brought forward at a future date. 

The City received proposals from Clear Channel, iDigital Outdoor and Lamar.  Staff has consulted with each company and has agreement on a preferred sign location at 7443 Highway 10 NW (former M & G Trailer storage site).  Each proposal brings a slightly different approach but all consist of a two-sided dynamic display with rotating advertising opportunities.  All proposals have the private company designing, constructing and maintaining the dynamic display and to lease the property from the City. Under these scenarios the city does not fund any of this project and receives lease revenue. Copies of the submitted proposals and a Staff generated summary and ranking sheets are attached for reference.

It should be noted that the land proposed for this project was purchased with RALF (Right of Way Allocation and Loan Fund) funds by the Metropolitan Council as part of the previous Highway 10 vision established in the early 2000s. This parcel is no longer needed as a full acquisition and will be eligible for this improvement and potential redevelopment in the future.  As such, revenue received from the land lease would need to first pay back RALF obligations. Once those obligations are satisfied, the lease revenue can be received by the City of Ramsey.  

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In an effort to further evaluate the proposals, the EDA put together a simple scoring/ranking system based on some key components of the proposals. The scoring system as a simple 1, 2, 3 rating with 1 being the best and 3 being the worst. The results of the scoring matrix below are not binding and only serve as a comparative tool to further the discussion. The ranking results are as follows:

1st - iDigital Outdoor
2nd - Clear Channel Outdoor
3rd - Lamar

The EDA reviewed all the proposals and used the comparative tool for evaluation.  Based on review of the proposals the EDA focused their discussion on the iDigital and Clear Channel proposals.  The EDA put added value in the pricing for local Ramsey business advertising and the flexibility of the sign company (sign location, willingness to move sign, and sign type) and ultimately recommended iDigital Outdoor. The EDA confirmed commitment to moving forward with a privately owned and operated Digital Billboard on Highway 10 near the COR. If the City Council is in agreement, next steps would be to select a vendor and to begin negotiations on a lease as outlined in the attached Resolution #21-131.

Alternatives:

1. City Council select a single/final vendor to negotiate a Lease Agreement on 7443 Highway 10 NW or a City preferred parcel (Resolution #21-131 as drafted identifies iDigital Outdoor as that vendor)
2. City Council to direct Staff to invite multiple vendor(s) to present to the EDA and / or City Council to select a single /final vendor to negotiate a Lease Agreement on 7443 Highway 10 NW or a City preferred parcel 
3. Something else

This project would be handled under normal staff duties.

There would be no cost to the City at this time. The City would negotiate the terms of a lease agreement and amend the current city ordinance to allow for such signage. The City would not be handling the ad sales. The billboard company would own and operate the sign itself. 

The Ramsey EDA met on April 8, 2021 and made a formal recommendation to recommend to City Council to further investigate and approve the concept of a digital billboard on Highway 10 with the EDA preference for vendor as iDigital Outdoor. An excerpt from the draft EDA minutes from April 8, 2021 is attached for review. 

Motion to adopt Resolution #21-131 approving selection of Dynamic Display Billboard Vendor for Retail Advertising on Highway 10 near The COR.