Title:
Title
Second Amendments to Digital Billboard Lease Agreements with Clear Channel Outdoor, LLC
End
FileID
File ID: 2020-00989
Location
Location: Citywide
End
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager or the City Manager's designee to execute Second Amendments to four Digital Billboard Leases (City Agreements 2010-0525, 2010-0526, 2010-0527, and 2010-0528) with Clear Channel Outdoor, LLC.
FileName
Contact: Melissa Anguiano, Deputy Director, (916) 808-5864, Office of Innovation and Economic Development Department
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Second Amendment to Billboard Lease (2010-0525)
3-Second Amendment to Billboard Lease (2010-0526)
4-Second Amendment to Billboard Lease (2010-0527)
5-Second Amendment to Billboard Lease (2010-0528)
Description/Analysis
Issue Detail: On May 11, 2010, City Council approved four Digital Billboard Leases (City Agreements 2010-0525, 2010-0526, 2010-0527, and 2010-0528) with Clear Channel Outdoor, Inc., the predecessor in interest to the current tenant, Clear Channel Outdoor, LLC (CCO). CCO operates the four digital billboards on City-owned sites located at the north side of Interstate 80 east of Northgate Boulevard (APN: 237-0031-36), Business 80 and Fulton Avenue (3630 Fulton Avenue, APN: 254-0310-002), west side of Highway 99, south of Mack Road (APN: 117-0170-067), and west side of Interstate 5 south of Richards Boulevard (240 Jibboom Street, APN: 001-0190-015) (the "Digital Billboards"). Each lease term is for 25 years, with an option to extend for five years for 30 years total.
The leases provide for periodic monthly rent adjustments based on lease year revenues. The leases also provide for temporary adjustments in monthly rent during any time CCO's advertising revenues from the Digital Billboards have decreased because of an event as described in the leases, including a force-majeure event. CCO's advertising revenue from the Digital Bi...
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