Alternatives to Compensation in Billboard Removal

PRESENTED BY: MARNIE CHRISTINE CODY, ESQ.

AND DONNA DESMOND, ASA

Billboards in the Way

Eight – Sheets Poster Panels

Billboards in the Way

Bulletins - Static Digitals

What’s the Problem?

 Billboards have significant value  Value is locational dependant  Local ordinances restrict relocation/replacement  State restricts location of billboards  Property owners may not approve

Controlling Authorities

City or County   Issues building permit Regulates placement or relocation of billboards within area of jurisdiction Caltrans   Outdoor Advertising Act controls placement and operations of all billboards within 660 ft. of and visible from state and federal controlled right of way and in many instances, billboards beyond 660 ft. that are or would be primarily visible from the right of way Regulates size, placement, illumination, distance between billboards and proximity to commercial/industrial areas

Cal Bus. & Prof Code §5412 – The Bible of Relocation … “no advertising display which was lawfully erected anywhere within the state shall be compelled to be removed” … ... “without payment of compensation, as defined in Eminent Domain Law” … ... “The compensation shall be paid to the owner or owners of the advertising display and the owner or owners of the land upon which the display is located.”

Cal Bus. & Prof Code §5412 – The Bible of Relocation ‘Relocation,’ as used in this section, includes removal of a display and construction of a new display to substitute for the display removed. It is a policy of this state to encourage local entities and display owners to enter into relocation agreements which allow local entities to continue development in a planned manner without expenditure of public funds while allowing the continued maintenance of private investment and a medium of public communication. Cities, counties, … are specifically empowered to enter into relocation agreements on whatever terms are agreeable to the display owner and the city, county …

Alternatives to Compensation

What are the parties goals?

 Sign operator’s goal = preservation of asset & income  Agency’s goal = development in a planned manner without expenditure of public funds

Reaching the Parties’ Goals: It all starts with communication Can the sign’s removal be avoided?

Is there any rush to clear the property?

Is it only an encroachment issue?

Considerations When Sign is Compelled to be Removed  Potential for Same-Site Relocation   Sign In-Kind Sign Upgrade  Alternative Site Relocation  What is a comparable site?   It is not “relocation” if the sign operator already could have constructed there.

Build new or modify existing signs & expand entitlements?

Single 12’ x 24’ sign showing to Hwy 126 Condemned for redevelopment purposes ED filed and settled by negotiated agreement Sign owner has continued possession Parties in cooperation toward relocation, site selection & agency approvals Right to compensation secured in amount to be determined if possession is ended w/in 15 years with no relocation

Case Study #1

Case Study #2 – A 7½ Year Odyssey

 14 signs acquired through eminent domain for roadway construction  All conventional static billboards of varying size showing to greatly traveled high demographic thoroughfare  Valued at $14,000,000  Result: sign company relocated 4 billboards including 2 electronic displays adjacent major freeway on property owned by condemning agency

Case Study #2 – A 7½ Year Odyssey

   It takes a village: Local Transportation Authority  City Council District  Mayor Dept. of City Planning, Community Planning Bureau & Dev. Services  Public Work Bureau of Engineering   EIR Consultant Community Redevelopment Agency  Bureau of Street Services   Department of Building & Safety State Department of Transportation