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Work Session Memo <br />April 2, 2010 <br />Page 4 <br />by CBS Outdoors (CBS) requesting additional time. Staff sent a letter to CBS on June <br />23rd that the billboard had to be removed. <br />In the months that followed, Clear Channel, Inc. became involved in the process and <br />again requested an extension or some other arrangement to keep the billboard. Staff <br />met with Rich Sonterre in September 2009 and repeated the City's contractual <br />obligation. Mr. Sonterre persisted and outlined an arrangement whereby the City and <br />Transoma could share in potential revenues. Staff was not comfortable with re -opening <br />negotiations and advised Mr. Sonterre that he would need to take the lead and craft a <br />proposal with Ryan and Transoma, since the removal of the billboard was their demand. <br />As the situation now stands, the License Agreement has expired and the deadline for <br />removing the billboard is six months overdue. Clear Channel has no right to be on the <br />property and is not paying the City any rent. Staff has not pursued removal of billboard <br />because of intimations by some on Council that there might be an opportunity for <br />revenue. In reality, the City would need to renegotiate its redevelopment contract with <br />Ryan and DSI with regard to the billboard. If that were successful, a lease agreement <br />would be required with Clear Channel. <br />As a final note, Clear Channel has indicated on several occasions that it desires to <br />upgrade many of its freeway signs in the metro area to the new 14' x 48' <br />electronic/digital billboards. These billboards are twice the size as the one near <br />Transoma. Since 1996, the City's zoning code has prohibited the construction or <br />expansion of existing billboards. <br />Conclusion <br />Hopefully, this provides some sense that we have our arms around the important issues <br />impacting the Northwest Quadrant. We look forward to a good discussion on Tuesday <br />night. <br />0 <br />