Agenda - Economic Development Authority - 02/10/2022

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Economic Development Authority (EDA) 4. 2. Meeting Date: 02/10/2022 By: Sean Sullivan, Community Development Title: Consider Recommendation of Lease Structure for Dynamic Display Billboard with iDigital Media Purpose/Background: The purpose of this case is the review the terms of the proposed lease with iDigital Media and the draft sign Ordinance and ultimately make a recommendation to the City Council on how to proceed with this project. The request for to explore and ultimately construct a Dynamic Display Bill Board originated in the EDA. Feedback from proposed developers and end users in regards to visibility from Hwy 10 in the COR prompted the discussion. On May 11, 2021 The City Council adopted Resolution 421-131 directing staff to begin work on negotiation for a ground lease on 7443 Hwy 10 (Former M&G Trailer RALF Site), or another City preferred location and to work on an ordinance amendment for digital billboards. Staff has been working with iDigital Media, City Attorney Langel, City Attorney Knaak, RALF, and the Planning Commission to put together the framework of a lease and ordinance. Dynamic Display Billboard Location and Design Staff has originally identified 7443 Hwy 10 NW as the proposed site for the billboard. Upon further discussion with the RALF program it was determined that the City would need to acquire the site before it would be able to enter into a lease with iDigital Media. The estimated cost for the entire site would approach 1.3M according to discussion with RALF. In addition erecting a sign prior to the new frontage road being built as part of the Hwy 10 project is problematic. Staff began searching for a better alternative near this location. Staff Identified a City owned parcel across the Hwy 10 in front of the old Diamond site and presented it to iDigital for consideration. In order to make the project work on this site,the power lines will need to be put underground and a vertical billboard would be needed. Discussions with Connexus Energy have been productive and iDigital Media is comfortable moving forward with this site. (See Site location Map) Terms of the Lease The terms of the lease are generally the terms reviewed by the City Council and EDA last year. The City attorney has reviewed the draft lease and does not have any objections at this point. Ramsey businesses are given a preferred rate, 8 slots of advertising availability if they are willing to buy, and the city is given access to post Public Service Announcement based on ability and an opportunity to advertise city events in the St Could and northern Minnesota networks. Political advertisements are an item that still needs to be refined. iDigital has asked the City to consider the ability for political advertisement under the conditions in the language below: "In light of Lessor's status as a governmental entity,Lessee agrees political advertisements, meaning advertisements appealing for votes for or against a candidate or issue in any election campaign will be treated with equal opportunity and be unbiased to any one party. This will include equal inventory offerings and equal rates to all political parties. Lessee further agrees toprohibit advertisement of'adult use businesses orproducts sold or marketed by adult use businesses as such businesses are defined in Section 117-1 of'the City Code, as well as advertisement of'tobaccoproducts, including cigarettes, e-cigarettes, chewing tobacco, cigars and vapor products, and any advertisement that promotes the use or consumption of such products" A recommendation by the EDA in regard to this language and other items in the draft lease would be requested before bringing this to the City Council for consideration of approval.