CC MEETING: February 20, 2024
DATE: February 13, 2024
TO: Erin Rinehart, City Manager
FROM: Kelli Lewis, Marketing Director
Title
Consider A Resolution Authorizing The City Manager To Negotiate And Execute A Contract With OUTFRONT Media For Billboard Rental In an Amount Not To Exceed $179,925.00.
Body
BACKGROUND:
In 2014, Carrollton’s Tax Increment Reinvestment Zone Number One (TIRZ) Board of Directors recommended, and City Council approved the City to utilize funds for billboard advertising space at IH-35E and Belt Line Road. The goals were to help mitigate the effects of road construction near Downtown Carrollton and to provide family-friendly, City of Carrollton messages that appear in the backdrop of all City events held under the board located in Downtown Carrollton. The billboard provides ideal advertising space to increase development, promotion, business, programming, and interest in Downtown Carrollton; thereby working to fulfill a long-standing City Council initiative.
In December 2016, with the decrease in board visibility at the IH-35E/Belt Line Road location due to 35Express construction, City staff successfully negotiated a deal with OUTFRONT Media to make up for lost impressions and maximize City messaging exposure. The existing contract was amended to include a second board adding to message consistency and gaining the southbound audience as well, for the same cost as the Council-approved contract agreement. Over the last few years, the City’s second board has moved from Sandy Lake to Luna Road to now Trinity Mills Road.
In February 2018, requests for funding were moved from TIRZ to the Transit-Oriented Development (TOD) Subcommittee, and funding has been approved through March 3, 2024.
Staff has renegotiated another two-year contract for both the Downtown Carrollton billboard and the supplemental board at Trinity Mills at a rate of $79,430.00 for Year One and $83,395.00 for Year Two, for a total rental cost of $162,825.00. Rental plus vinyl production and installation costs of $8,550.00 per year bring the full requested amount to $179,925.00 for the proposed 2024-2026 contract.
Additional Billboard Information:
The OUTFRONT MEDIA billboard located at IH-35E and Belt Line Road is sought after by local businesses and national advertisers due to consistent traffic and impression numbers. The south-facing board reaches northbound traffic as a right-hand read, and generates 613,929 weekly, 2.46 million monthly, and 31.9 million annual impressions. This averages out to more than 87,707 interactions with a City of Carrollton message per day according to OUTFRONT MEDIA-provided statistics. With nearly 95 percent of right-hand reads under permanent contract and inaccessible for new advertisers, inventory is in high demand.
The Trinity Mills board is also a right-hand read for the southbound audience. It generates roughly 3 million monthly impressions, providing additional exposure from the previous two secondary locations.
FINANCIAL IMPLICATIONS:
Funding to be provided from General Capital Fund contingency funds.
ACCOUNT BUDGET AMOUNT
854102 $79,430.00 (contract year 1)
$83,395.00 (contract year 2)
$8,550.00 (vinyl printing and install charges year 1)
$8,550.00 (vinyl printing and install charges year 2)
Total: $179,925.00 for 2024-2026
At its February 5, 2024 meeting the City Council TOD Subcommittee recommended favorably for extending the billboard contract for another two years.
IMPACT ON COMMUNITY SUSTAINABILITY:
The billboards, used in conjunction with other media, help increase patronage to Downtown shops and restaurants, attendance at Downtown events, and reflect Carrollton branding to actuate a positive community response and greater awareness of Carrollton’s offerings. If funding is approved to continue renting billboard space along IH-35E, the City will maintain branding consistency and message control. Before the end of the proposed 2024-2026 contract, City staff will reexamine the value of the board according to construction-affected visibility, promotional needs, and the desire to have the City’s family-friendly messaging on display.
This communications channel aligns with City Council’s goals to enhance the perception and reputation of the City brand, reflect a positive image of Carrollton, communicate and engage with the community, to increase and stimulate the sales tax base, and to foster a welcoming environment for businesses and residents.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council approval of the attached resolution affirming the action of the City of Carrollton’s Transit-Oriented Development Subcommittee which recommends expenditure of City contingency funds of $162,825.00 for two years, as well as $17,000.00 for production and installation charges for two years, for a total amount not to exceed $179,925.00, for Downtown Carrollton message control via billboard rental.