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Council reviews DOT requirements for highway business signs; attorney flags gifting concern
Summary
Staff summarized New York DOT rules for highway signage and noted city could be asked to install or reimburse backer boards; the city attorney advised against paying for private-business signs as a potential gift of public funds, and council members proposed further research and a small subcommittee.
Members of Olean’s committee reviewed state Department of Transportation materials describing how businesses may obtain highway directional signage and the city’s possible role if it supports such signage.
Staff explained DOT requires businesses to apply for logo/directional signs; municipalities typically do not apply on behalf of a private business. The DOT materials cited five business categories (gas, food, public phone, camping, attractions) and listed minimum operating standards for eligibility (for example, service hours and facilities). Staff said DOT requires engineering-reviewed plans, that DOT charges $100 per year per sign (and an additional $50 per year for certain sign types), and that the city could be asked to furnish backer boards or reimburse a portion of existing backer-board costs. The staff presenter said the city can have three backer boards (18 total business logo slots) on a ramp.
The city attorney advised caution: she said the city should not use public funds to pay for private-business signage because that could be construed as an impermissible gift of public funds. Committee members suggested alternatives: businesses fund signs themselves or the Chamber/bed-tax funds help offset costs where the expense is directly tied to economic development.
Next steps - Staff to research typical models (business consortiums, Chamber-supported efforts, or bed-tax funding) and to obtain cost estimates from DOT-listed contractors for sign fabrication and installation. - Councilmembers Jen and another alderman volunteered to serve on a small subcommittee to engage downtown businesses and the Chamber on possible funding models.
Limits - No agreement to fund private signs was made; the city attorney’s advice to avoid gifting public funds was recorded. Staff said further legal and financial analysis is needed before any commitment.
