Redwood City will issue a solicitation for one digital billboard as it considers adjusting existing limitations on signs by weighing environmental impact and industrial blight against potential revenue for the city.
For small businesses like auto dealerships, Councilmember Diane Howard said the potential benefit in advertising is worth the consideration, and can positively impact both the city and business community.
“I’d like to study it and see how we can do it the best we could, to provide the revenue to the city, make it safe as best as we can, respect our environment, but also respect our businesses,” Howard said.
As of 2007, city ordinance restricts the installation of billboards, with few exceptions, including the maintenance of five grandfathered-in static ones. All five are east of Highway 101, but bring in no revenue for the city. The intention of the council is to prioritize replacing some of these static billboards.
The exact potential revenue is unknown at this time, but staff has looked to nearby cities with digital billboards for an estimation, Economic Development Manager Amanda Anthony said. In San Carlos, five digital billboards provide a net annual revenue between $500,000 and $600,000; in South San Francisco, four yield between $280,00 and $320,000 annually.
The effort to study billboards was outlined in the city’s Development Work Plan, approved in April, and has been a consideration of the council since the pandemic, Vice Mayor Lissette Espinoza-Garnica said. The revenue, regardless of amount, would provide some relief toward the city’s projected deficit.
“This isn’t going to close the budget deficit,” Espinoza-Garnica said. “We can at least have some certainty of building a billboard when we can’t really have certainty in whether or not we will have a new corporate tax to generate the revenue we need.”
For Councilmember Kaia Eakin, the time and effort put in to study this potential ordinance change, and the multiple obstacles posed by city and state law, is not worth the “paltry” revenue.
“What if we took that staff time and directed it toward processing permits, processing more ADU permits, processing more parklets for the downtown, we have many levers for generating revenue,” Eakin said.
The city currently has very limited areas in which a digital billboard could be erected. Regulations from the California Department of Transportation require placement in industrial and commercial zoning, far enough away from other permitted displays, and is not allowed on landscaped freeway segments.
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All but approximately 0.2 miles of the 101 corridor in Redwood City are considered to be landscaped freeway segments, according to the staff report. A request to declassify the highway segment — which is approximately 10 feet — must be submitted to Caltrans before the city would be able to consider installing a digital billboard.
All of San Carlos’ digital billboards were declassified landscaped freeway segments, but each case is decided upon by Caltrans individually, Anthony said.
“Caltrans regulations are very limiting but we do have a lot of interest from our businesses and property owners in allowing digital billboards,” Anthony said.
Though Eakin voted in favor of the city studying billboard implementation in April, she said she believes these obstacles pose enough reason to not move forward.
“This study really convinced me that billboards is not a good use of resources at this time,” Eakin said.
Generally in support of the solicitation process, Espinoza-Garnica said it will be important to make sure the digital billboards will not be overly concentrated in particular neighborhoods of equity priority concern. Current possible areas for consideration are near the Friendly Acres neighborhood.
Public commenters in particular raised concern over the environmental impact of these billboards, especially in regards to light pollution and possible harm to migrating birds.
So far, staff studies have not required an environmental review, however, if the city ultimately decides to change its ordinance to allow for digital billboards, one would have to be conducted, outlining concerns and possible areas of mitigation.
One suggestion was to consider turning off the billboards between dusk and dawn or for a few hours each night. Anthony said this decision will be considered through cost benefit analysis of potential revenue.
With Eakin opposed, the council voted 6-1 to authorize a phased approach to considering digital billboards and prepare a solicitation to allow for one in the city. If interest is piqued by businesses, staff will evaluate proposals and an environmental review will be conducted before the city would consider ordinance revision.

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