Council backs creation of Rail Yards Special Sign District and directs staff to draft billboard ordinance; debate centers on boundaries and saturation

The Sacramento City Council voted to direct the interim city manager or designee to prepare an ordinance establishing a Rail Yards Special Sign District that would allow digital billboards within the Rail Yards Specific Plan area, including up to five proposed off-site general advertising digital billboards in Subdistrict 3 as described in a preliminary term sheet tied to planned stadium and entertainment development.

Staff said the proposed special sign district boundary matches the Rail Yards Specific Plan and that creating five subdistricts would provide flexibility for location, time and manner restrictions. The subdistricts shown in staff materials include Sacramento Valley Station; Historic Central Shops; DRV-owned properties (Subdistrict 3); Indomitable-owned properties (Subdistrict 4); and Kaiser Permanente properties. Staff recommended the council direct the interim city manager to prepare an ordinance that would be brought back for council consideration.

"We have to be really careful about how we allow digital sign uses to grow in the city," Bruce Monaghan, the city's urban design manager, said in response to council questions about expansion. He told council the city had previously limited ESC signage and learned lessons about saturation and location that informed tonight's recommendation.

Reclamation District 1000 asked the council to consider two adjacent sites outside the proposed boundary that the district believes could be suitable locations; Councilmember Guerra asked staff to confer with RD 1000 and return with an assessment. "I don't know if it's appropriate to include it in this motion," Guerra said, "but I am willing to amend that motion to include that area or to direct staff to come back with the other parcels that are identified by RD 1,000."

Council members raised concerns about oversaturation and the potential effect on existing city advertising assets. Councilmember Jennings asked staff to show examples of kinds of digital signage other cities use and to include details on dimensions, lighting, and monument vs. elevated forms when the ordinance returns. Several council members emphasized conditions around lighting, maintenance and whether sign locations would be on private or city-owned property.

Outcome and next steps

- Council voted to direct the interim city manager to prepare an ordinance establishing a Rail Yards Special Sign District consistent with the term sheet; the motion passed unanimously on the discussion calendar.

- Council directed staff to confer with Reclamation District 1000 about the two parcels the district proposed and to return with recommendations about whether and how to include them.

- Staff said the ordinance development will include specific standards for sign location, dimensions, lighting levels, and procedures under Sacramento Code chapter 15.148 and Council rules of procedure.

Context

The proposal implements terms from a previously approved preliminary term sheet tied to the planned Sacramento Republic FC stadium and related Rail Yards development. Staff and DRV (the project proponent) have argued digital advertising revenue will be part of the project's financial feasibility; council members acknowledged the revenue argument while asking for limits to avoid visual oversaturation and to protect city-owned billboard revenue streams.

Ending

Council directed staff to prepare an enabling ordinance and return with the draft, including clear standards on locations, lighting, property ownership considerations and revenue impacts. The council also requested staff explore RD 1000's suggested parcels and report back.