Digital billboard proposed for Millbrae: City could accept nearly $5 million by replacing hotel sign

The digital billboard is proposed to be installed where a current sign stands promoting Millbrae hotels, on a piece of city-owned land located east of Highway 101, south of the Millbrae Avenue exit, near the city’s border with Burlingame.

City coffers stand to receive a windfall of money, should officials approve the digital billboard, as Outfront Media has offered $4.8 million over a 20-year contract to allow the installation.

The advertising company would pay the city a $100,000 signing bonus for approving the lease, as well as $200,000 annually for the first five years of the agreement, with a $25,000 escalation every five years, until it eventually reaches $300,000 per year for any amount of time beyond 20 years.

The contract also includes a contingency which would require Outfront to make additional payments if the lease payment is less than 35 percent of the advertising company’s gross revenue for the year.

Councilman Reuben Holober, who has been involved with the proposal to install the billboard for many years, said he believes it would offer Millbrae a variety of substantial benefits.

“Overall, it would be a nice boost for the city,” he said.

Additional benefits exist beyond the financial gains the city stands to accept by approving the digital billboard as well, according to Community Development Director Deborah Nelson.

Atop the poll holding the billboard will be a graphic design declaring its presence in Millbrae, and all the hotels promoted on the sign at the current site will be featured on an illuminated advertisement below the LED screen.

Nelson said the billboard will enhance the city’s efforts to build its presence and brand.

“The city’s branding, in terms of its logo, is on the sign,” she said. “Branding by a city is a way to distinguish itself.”

Should the digital billboard be approved, the current hotel sign would be moved north along Highway 101 to be mounted on top of the city’s wastewater treatment plant at 400 E. Millbrae Ave. There is a sign already mounted on the plant, which is slated to be moved to a yet to be determined location.

Though the city would have no control over the ads displayed on the billboard, there would be opportunities to promote community activities and events.

Holober said he appreciated the billboard’s potential for drawing more attention to the city.

“Whatever we can do as a community to bring people into Millbrae to visit our city and shop at our businesses is a benefit,” he said.

He also noted tying the city’s logo together with the technological advancement of upgrading a stagnant sign to a digital billboard could supplement Millbrae’s interest in declaring itself a more contemporary community.

“It starts to brand Millbrae in more of a modern way, which will help perception of the city,” he said.

Should the billboard be approved, before it is installed the city needs the blessing of the California Department of Transportation, which has jurisdiction over Highway 101, and the Federal Aviation Administration, due to proximity to San Francisco International Airport.

Nelson said she has not heard any residents express concerns regarding the proposal to install the billboard, and Holober agreed, but said he expects some may be initially bothered by it, should it be approved.

“It may be a shock to people,” he said. “But I don’t see it as something that will be a detriment.”

Ultimately, Holober said he believes the city stands to benefit both fiscally, and from the message the billboard would send to those driving along Highway 101.

“This does symbolize Millbrae entering the 21st century. We are a little behind some of the communities here,” he said. “But this would improve the perception of Millbrae.”

The Millbrae City Council meets Tuesday, Aug. 18, in council chambers, 621 Millbrae Ave. The meeting begins at 7 p.m.

austin@smdailyjournal.com

(650) 344-5200 ext. 105