(April 14, 2008) -- LBReport.com has learned, and first flashed this morning on our front page (www.lbreport.com), that Media Management Service, which is proposing to install and operate six electronic signs along LB freeways in Redevelopment areas under a revenue-sharing proposal with City Hall, has modified its proposal and now seeks 14 ft. x 48 ft. signs -- the industry standard billboard size -- instead of dimensions previously indicated.
The letter also includes revised light projection studies [which LBReport.com is in the process of obtaining.]
And the letter includes offered financial specifics (below) which it calls "deal points":
In the letter dated April 10 to LB Mayor Bob Foster and City Councilmembers, Media Management Service, Inc. Principal Michael Pauls writes in pertinent part:
Since our most recent presentation before City Council, technological advancements in digital display technology have virtually eliminated light projection from digital display screens.
We are enclosing revised light projection studies which accurately show the distance light is projected from the proposed six (6) digital display sites.
...Please note that our new 14' x 48' (672 s.f.) proposed display represents a 26 percent reduction in size from our original 30' x 30' (900 s.f.) display format.
We would also like to address the questions of the Long Beach City Council Budget Oversight Committee. To clarify those questions, we have respectfully offered the following deal points:
1. Payment to City: MMSI will pay the City a MAGP of $500,000/year, plus three (3%) percent annual escalators to that amount or thirty-five percent (35%) of the gross annual advertising revenue, whichever is greater.
2. Advertising Time to City: MSI will make available to the City twenty (20%) percent of all advertising time or over 450,000 advertising spots per month, distributed evenly throughout the day, for use by the City as it sees fit.
We recommend that a significant percentage of the Public Service Announcement time be provided to Long Beach Business Districts for the purpose of promoting these districts to the over 750,000 vehicles which pass through our City daily.
The letter proposes an initial ten year term, with an additional ten year option.
The firm also proposes to provide a completion bond to complete build-out within two years and take-down at the end of the agreement. The company says the Digital Display designs' content will comply with LB Muni Code section 16.55 prohibiting references to adult content and use of alcohol, tobacco products or illegal drugs...and will comply with all other applicable local, state and federal laws.
The letter concludes:
"Digital advertising is the future, where today in the City of Los Angeles over 850 outdoor digital advertising displays have been approved and are being built. Today, advertising is critical not only for businesses and business districts to succeed but for cities to succeed in our competitive Southern California market place."
The firm's April 10 letter came just days before the item was agendized for consideration at the April 15 City Council meeting to concur in the recommendation of the Council's Budget Oversight Committee "to consider the potential use of Digital Billboards with the following caveats: 1. Setting a minimum net revenue, if the digital billboards are enacted; and 2. Outline details of revenue sharing with the Arts and Public Safety.".
Reaction is pending. Further to follow on LBReport.com.
