Commission approves settlement keeping PAM billboard with conditions and annual payments to city

The City of Miami on Sept. 25 approved a settlement with Perez Art Museum Miami and Orange Barrel Media to resolve litigation over an oversized LED sign on Biscayne Boulevard. The commission voted 4–1 to accept the settlement as amended; Commissioner Pardo voted no.

Under the settlement terms published with the agenda and amended on the floor, PAM and Orange Barrel Media will operate the sign under stricter hours and brightness limits and pay the city an annual fee. The original fee offered in negotiations was $420,000; the final agreed payment is $500,000 per year with a 2 percent annual escalator and additional limits on hours of operation (dark between 11 p.m. and 7 a.m., reduced brightness at dawn/dusk) and other technical constraints aimed at reducing light exposure to nearby residences and parkland.

Perez Art Museum leaders said the sign funds core free programming and educational outreach across the city; PAM officials described the sign as a “digital canvas” that supports youth programming and outreach to tens of thousands of children and elders annually. PAM counsel argued a court challenge could leave the city liable for damages and legal costs and that a settlement allows the museum to continue funding programs and avoid prolonged litigation.

Opponents — including nearby residents, cultural institutions such as Frost Science and multiple downtown neighborhood groups — said the sign is an illegal, intrusive commercial use of public park frontage and would set a precedent for larger, brighter signs on the waterfront. Critics urged the commission to pursue litigation to remove the sign and restore the status quo rather than negotiate a post‑hoc settlement.

City attorneys told commissioners the permits and approvals, and earlier city actions, had created vested rights and legal risk that, if litigated to judgment, could expose the city to substantial liability. After a closed attorney‑client session (authorized by state statute for settlement discussions), commissioners considered a substitute settlement memo and several floor amendments addressing brightness, hours, and use of the fee funds.

The adopted motion added a 2 percent annual increase to the $500,000 payment and set the sign to be dark from 11 p.m. to 7 a.m.; the commission also clarified language to make certain pending claims dismissed with prejudice. Commissioner Pardo, who pressed for additional public engagement and stronger enforcement mechanisms, voted against the settlement.

City officials said the agreement ends active litigation and creates enforceable operational limits and financial benefits for the city, while critics said it rewards noncompliance and risks encouraging similar projects. City staff will now implement the technical monitoring and enforcement provisions included in the settlement language and report back on compliance as required.