Stoughton finance committee reviews Adams Outdoor billboard deal, weighs $50,000‑per‑year lease vs. $500,000 easement

The Stoughton Finance Committee on July 14 examined a proposal from Adams Outdoor Advertising to replace an electronic billboard on city property near the Opera House and fire station, debating a 20‑year lease that would pay the city $50,000 per year versus a one‑time $500,000 easement payment.

Nicole Marie, who summarized budget treatment for the offers, said the $500,000 would be a one‑time capital resource while the $50,000 annual rent would go into general revenues and could increase the city’s recurring budget capacity. The committee heard that the incumbent arrangement currently pays roughly $2,000 per year.

The presentation outlined two options from Adams: a 20‑year lease at $50,000 per year with a 3% rent escalator every five years (or $25,000 per year if installation occurs after October) that would include five advertisements per year reserved for the city and the ability to display emergency messaging; or a $500,000 upfront easement in exchange for access and use of the parcel. Presenter (speaker 4) noted the lease versus easement comparison and said the 20‑year lease would exceed $1 million over its term.

On contract status, staff raised a legal complication: the original lease for the sign was executed by the prior landowner (identified in the record as Dave Melton), and the current lease language may limit termination rights to that original signer. Presenter said staff had met Mr. Melton but that he did not indicate willingness to remove the existing sign; the legal detail means the city has negotiation and litigation options to consider.

Staff summarized zoning and ordinance context: the plan commission recommended comprehensive revisions to the sign ordinance that would tightly limit off‑premises billboards to outlots of at least five acres in specific zones, reducing the number of locations that would qualify. A staff member (speaker 7) said that, if approved by council, the revised ordinance would make it difficult to locate additional off‑premises billboards on most private lots.

Committee members focused on location, aesthetics and safety. Presenter described the proposed digital sign as roughly 12 by 24 feet and “less than 30 feet total off the ground,” and noted Adams’ dimming and non‑flashing features. A committee member asked about proximity to an adjacent apartment complex and the potential visual impact on the historic Opera House; staff said decorative treatments and lighting limits could be specified in the agreement.

Members also sought operational details for the five city‑controlled ads. Staff said each city slot would run up to 21 consecutive days and that staff would confirm rotation mechanics and duration. Questions about installation lead time produced a timeline: if a lease were approved by mid‑September, Adams said it could meet the installation deadline needed to secure the higher rent option before the end of October.

No formal action was taken that night. Committee members directed staff to invite representatives from Adams Outdoor Advertising to present at an upcoming meeting (possible dates discussed included July 28 or the August meeting) and to circulate finance‑related questions to staff in advance. Presenter noted that any preliminary approval by finance would still require full council review because of the dollar amounts involved.

The committee closed the discussion after agreeing to gather additional information and to host Adams for a presentation before making a recommendation to council.