In December 2019, the City entered into a Billboard Removal and Relocation Agreement (“Agreement”) for the permanent removal of two existing billboard structures owned by Outfront Media, LLC (“Outfront”) within the City and to permit a new electronic billboard to be erected along the Garden Grove (22) Freeway Corridor.  The Agreement provides for an initial 15-year term with an option for an additional 15-year term extension (for a total of thirty (30) years).  A City mitigation fee is to be paid by Outfront on an annual basis to assist in mitigating the aesthetic, cultural, economic, and other impacts of the project on the City.  The mitigation fee total is not to exceed $2,718,769.82, paid out annually over the 30-year period.

Due to unforeseen delays, the property owner of the site where the electronic billboard will be placed requested modification to the lease terms with Outfront.  The property owner requested an option be added to the lease to allow it to terminate at the seventh year.  

In order to make the Billboard Removal and Relocation Agreement consistent with the underlying lease, the First Amendment provides for an option to terminate the Agreement at the seventh year.  In the event the seven-year termination provision is exercised, Outfront is required to remove the electronic billboard from the property.  Except as modified by this First Amendment, all other terms and conditions remain in full force and effect.

Revenues generated from the First Amendment for the seven-year period will be in the amount of $637,607.

It is recommended that the City Council:

• Adopt a Resolution to approve the First Amendment to the Billboard Removal and Relocation Agreement with Outfront Media, LLC; and

• Authorize the City Manager to execute the First Amendment and make minor modifications as needed on behalf of the City.

By:  Paul Guerrero, Sr. Program Specialist