Pico Rivera council approves development agreement for digital billboard at 3900 Bay Bar Road

The Pico Rivera City Council on May 20 approved a development agreement to allow construction of a digital billboard at 3900 Bay Bar Road, with an upfront payment to the city and annual revenue sharing.

Council approval came after staff described revenue terms and answered council questions about city messaging and possible branding on the billboard frame. The agreement, as described at the meeting, provides an upfront payment to the city and guaranteed annual revenue for the first 10 years, with a higher annual amount if the agreement is extended.

City Manager Steve Carmona told the council that roughly 5% of display time on the digital board would be allocated for city public-service announcements, safety messages and community notices. “About 5% of the time is allocated for the city to promote various special announcements, safety announcements, or public information,” Carmona said during the hearing. He also said the agreement includes an upfront payment and ongoing annual revenue.

During the hearing the city’s staff described the financial terms: an initial upfront payment of $35,000 and recurring revenue described in staff comments as about $100,000 per year for the first 10 years. Economic development staff later clarified the multi-decade structure, saying the first 10 years are guaranteed at $100,000 per year paid quarterly; if the agreement is extended, the annual amount for the subsequent 10 years would increase to $110,000 per year.

Council members asked staff to explore whether the city’s name or logo could appear on the billboard framing, noting nearby cities sometimes include municipal branding on similar signs. Staff said they would look into that request and consider adding a district tab and regular updates on the city website and newsletters to notify residents about the billboard’s public-service rotation.

The motion to approve the development agreement was moved by Council member Dr. Sanchez and seconded by Council member Laura. The council carried the motion in a roll-call vote recorded as 5-0.

The decision allows the developer to proceed under the terms presented at the hearing; the council did not adopt an ordinance at this meeting. Staff indicated the city will receive the upfront funds and the scheduled revenue payments per the contract terms described to the council.

For residents: staff said about 5% of the display time will be available for city messages and urged residents to use the district’s service-request channels for questions about content or operations.

Votes at a glance: the council voted 5-0 to approve the development agreement for the digital billboard.

(Reporting note: Quoted figures and contract terms in this article are based on statements and clarifications read into the public record at the May 20 council meeting. Where staff gave multiple figures, the article reports both the initial description and the staff clarification.)