Adopt Resolution #20-246 Directing Staff to Prepare a Request for Interest/Qualifications for a Dynamic Display Billboard for Retail Advertising Along Highway 10 Near The COR

Staff has received input from developers and potential end-users indicating that it is difficult to been seen from Highway 10 in the COR and surrounding areas.  The City Council and Planning Commission have recently granted approvals for 75 foot tall signage on the land under contract by RGH Ramsey and another parcel owned by PSD LLC to assist in increasing visibility to Highway 10 traffic. 

The EDA met on September 10, 2020 and discussed the possibility of a Dynamic Display Billboard somewhere on Hwy 10 to assist in marketing for the COR and other businesses in Ramsey.  At the EDA meeting a presentation made by Blue Ox Media highlighted the Ramsey market, items to consider when locating a Billboard of this type and experience with a new Dynamic Display Billboard in Champlin. Blue Ox Media is a Dynamic Display Billboard owner and operator.  Blue Ox Media erected the newer billboard on Highway 169 in Champlin, which provides additional advertising opportunities for local and national businesses. The cost of this Dynamic Display Signage was around $500,000.  The consensus of the EDA was to explore this option further and to solicit proposals from interested parties and the minutes from that meeting are attached.

Within the last 1-2 years, the City renovated the Community Sign adjacent to the Northstar Commuter Rail Station. The intent of this sign was clearly defined as a community sign providing community messaging only, not advertising for local businesses. This current discussion is to consider ways to provide an additional signage that is focused on advertising for local businesses; not a community message sign. 

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Blue Ox Media did a great job answering questions and providing some feedback on the prospects of a Dynamic Display Billboard in Ramsey at the September EDA meeting.  Generally speaking, they indicated that Ramsey was a market for consideration and that they would have interest in exploring it further.  In addition, they indicated that often times there are local advertising opportunities for local businesses at reduced rates but that the majority of the revenue was for national advertisers for long term contracts.  All of these items could be negotiated if the City was party to the sign agreement.  Although the preference from Blue Ox Media was to enter into an Exclusivity Agreement, the subsequent discussion by the EDA led to a consensus that the City should let other interested parties pitch their proposals as well.

Staff would like to know if the City Council has interest in exploring the possibility of locating a Dynamic Display Billboard on Highway 10, or another location, to provide opportunities for Ramsey businesses to increase marketing exposure for businesses. If the City Council is in support of moving this forward Staff believes the direction to create a Request for Proposal (RFP), Request for Qualifications (RFQ) or some other solicitation to see if there is interest from the private sector in Ramsey should be given to staff.  This solicitation of proposal document process will require staff time to develop and to bring back to Council for consideration.

Things to consider in a RFP, RFQ or other solicitation for proposals include:

• Location of Dynamic Display Billboard
• Size of Dynamic Display Billboard
• Development Standard and Maintenance
• Duration
• Ad Content (guaranteeing that Ramsey Businesses can advertise)
• Level of City Participation
• Ordinance Changes
• Community Branding (similar to City Signs on Hwy 10?)
• Timing

Alternatives:

1. Direct Staff to draft a formal RFP, RFQ or some other solicitation for proposals for a dynamic display billboard
2. Direct Staff to simply ask for proposals from interested parties, without parameters, and evaluate each proposal and report back to EDA/Council for further direction
3. Do not initiate City involvement in dynamic display billboards in the City of Ramsey and address proposals as they come forward.
4. Something else

This project would be handled under normal staff duties.

There would be no cost to the City at this time. If a parcel owned by the City were selected, the City would receive lease revenue for a ground lease. The City would not be handling the ad sales. The billboard company would own and operate the sign itself. 

The EDA met on September 10, 2020 and the consensus was to solicit a Dynamic Display Billboard proposal from the two parties that had expressed interest as of the meeting date.  Since the EDA meeting on September 10, 2020, the City has been contacted by Clear Channel and I Digital Outdoor (Fargo) and they have expressed interest in the Ramsey Market.  Based on this level of interest, Staff believes that if staff is directed to create a RFP, RFQ or other solicitation proposal, it should be open to all interested parties.

Planning Commission reviewed the concept of a dynamic display billboard at its October 2020 meeting and was supportive to the process moving forward as long is it was consistent with the City Sign plan.

Staff recommendation is to begin preparing a request for interest. 

Motion to adopt Resolution #20-246 directing Staff to prepare a Request for Interest/Qualifications for an advertising billboard along Highway 10.