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Committee approves revocable permit for off‑site wall sign at 1650 Mission Street
Summary
The Budget & Finance Committee approved a revocable permit with Total Outdoor Corporation to occupy a billboard space at 1650 Mission Street. The permit sets a $63,000 annual minimum guarantee, a $30,000 initial bonus and higher rates if illumination rights are later obtained.
The Budget & Finance Committee voted to forward a resolution authorizing a revocable permit for an off‑site wall sign at 1650 Mission Street to the full Board of Supervisors.
John Updike of the City’s Real Estate division told the committee the city acquired the building in February and assumed existing leases, including one with CBS Outdoor that lapsed on March 31, 2011. After a spring 2011 solicitation that excluded alcohol and tobacco advertising, negotiations with the top bidder failed on minimum‑guarantee terms and the city pursued the second‑ranked proposer. The permit before the committee would be issued to Total Outdoor as successor to West Coast Media, Updike said.
The permit’s baseline payment structure includes a $63,000 minimum annual guarantee, a $30,000 initial bonus amortized over the permit’s initial term, and a revenue share (35% above a specified threshold). Updike said the permit is revocable and that the Port does not currently have illumination rights; if lighting rights are obtained in the future the minimum annual guarantee would rise to $105,000.
Budget analyst Mr. Rose told the committee the package would generate about $93,000 in the first year (the $63,000 minimum plus the $30,000 bonus) and roughly $324,000 over the 4‑year, 8‑month initial term. He noted those figures are materially lower than the prior $240,000 annual minimum the city had received at the site under CBS Outdoor and recommended approval.
A member of the public, Douglas Yip, suggested the city consider reserving the space for public service announcements and nonprofit messaging targeted to the Mission Street neighborhood. After brief public comment and a motion to approve (mover and seconder not identified in the transcript), the committee moved the item forward without objection.
The resolution now goes to the Board of Supervisors.
