Adopt Resolution #21-027 Approving Request for Interest (RFI) for a Dynamic Display Billboard for Retail Advertising on Highway 10 Near The COR

The purpose of this case is to seek authorization at the recommendation of the EDA to publish a request for interest in developing a dynamic display billboard on Highway 10 in Ramsey. The City would not own the sign, but facilitate the location of a sign by a private billboard company. A request for interest is a shorter, more simplistic version of a request for proposals to gauge interest before investing significant staff time in the endeavor. A request for proposals is a more involved and detailed process. Either way, this process is to simply seek interested parties. It does not obligate the City to move forward with a project itself. 

Staff has received input from developers and potential end-users indicating that it is difficult being seen from Highway 10 in the COR and surrounding areas.  Due to this issue, 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 Highway 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.
 
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.

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. 

The City Council met on November 10, 2020 and directed staff to draft a Request for Interest for a Dynamic Display Billboard on Highway 10 near the COR.

N/A

Staff has prepared a Request for Interest/Proposals for a Dynamic Display Billboard for Retail Advertising on Hwy 10 Near the COR.  

Items further defined in the RFI  include:

• Proposed Location of Dynamic Display Billboard
• Size of Dynamic Display Billboard
• Development Standard and Maintenance
• Duration of Agreement
• Ad Content 
• Ordinance Changes
• Community Branding (similar to City Signs on Hwy 10?)
• Timing

Alternatives:

1. Adopt Resolution #21-027 Approving Request for Interest/Proposals for a Dynamic Display Billboard for Retail Advertising on Hwy 10 Near the COR as presented
2. Adopt Resolution #21-027 Approving Request for Interest/Proposals for a Dynamic Display Billboard for Retail Advertising on Hwy 10 Near the COR with changes
3. 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 negotiate 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 recommends that the City Council begin a process seeking interest in construction a dynamic display billboard on Highway 10. 

Motion to adopt adopt Resolution #21-027 approving Request for Interest for a Dynamic Display Billboard for Retail Advertising on Highway 10 near The COR.