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Mendota Heights council weighs digital billboards as potential revenue source
Summary
City officials heard proposals for digital monument signage on Highway 494 that an operator says could generate roughly $75,000–$100,000 annually; councilors raised concerns about driver distraction, equity and MnDOT permitting and asked staff to evaluate zoning and sites.
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Mayor Stephanie B. Levine opened a Mendota Heights work session on Jan. 20, 2026, where the council heard a proposal to allow large digital monument signs on Highway 494 as a potential revenue source for the city.
City Administrator Cheryl Jacobson introduced Melissa Reed of Resolve Strategies and Jeff Gerber of Interstate Outdoor Advertising. Community Development Manager Sarah Madden told the council it would need to adopt new code language to permit large digital displays if the council wanted to move forward.
Melissa Reed, who identified herself as a Mendota Heights resident and government-relations specialist, said monument display signs could “generate revenue for the City without increasing taxes” and suggested the city could partner with nearby St. Thomas Academy for advertising and announcements. Reed and staff identified Highway 494 and a site east of Kensington Park as possible locations.
Jeff Gerber of Interstate Outdoor Advertising told the council a sign’s minimum annual revenue would likely be “approximately $75,000 and could be as high as $100,000, depending on various factors.” He also said leases are typically about 20 years in length.
Several councilors raised concerns. Councilor Lorberbaum recalled that the Planning Commission previously opposed digital signs over “concerns about driver distraction.” Councilor Paper asked whether nearby institutions, including the Convent of Visitation, could also install signs if St. Thomas Academy did; Gerber said MnDOT regulations would likely prevent duplicate installations. Mayor Levine said she was interested in the concept but worried about equity between adjacent properties and noted that Two Rivers High School had been denied permission for a digital sign in the past.
The council did not take formal action to change the city code but expressed general opposition while also requesting staff review. Madden said staff would evaluate both proposed sites and draft an ordinance if the council wishes to proceed; Jacobson cautioned that the item would be a lower priority behind other staff work.
The work session concluded with the council adjourning later in the meeting.
