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Item No: 07D Meeting Date: Oct 24, 2011 Type of Business: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Resolution 7844 Approving an Amended and Restated Lease Agreement between the City of Mounds View, Medtronic and Clear Channel Introduction: The City of Mounds View was approached earlier this year by Clear Channel Outdoors with an offer to convert the existing billboard at the northeast corner of the former City golf course property to an LED display. While the City no longer owns the property, the revenues from the lease are assigned to the City by the property owner Medtronic. Discussion: To allow for the conversion, two things would need to occur—gain the consent of the City and property owner, and amend the City Code to eliminate the two-for-one conversion requirement and reduce the dwell time from 15 seconds to 8 seconds. The City was already intending to modify the sign code regarding dwell times due to timing issues on the sign on City Hall property, thus staff presented the City Council with the proposal from Clear Channel. The proposal, which mirrored that already approved by the City of Blaine, would include the following compensation provisions: • Lease revenue $50,000 per year for one LED face • Lease revenue $60,000 per year if BOTH faces converted • 2,250 eight-second public service message spots (5 hours) per month In return for consenting to the conversion, the City requested, in addition to the revenue and PSA spots, that Clear Channel agree to reimburse the City for its legal fees associated with modifications made to the lease agreement and for the cost associated with the purchase of a luminance meter to confirm light readings from the converted billboard faces. Staff has corresponded with Medtronic, the owner of the land on which the billboard is located, and it is believed that their consent will be provided, perhaps in return for the ability to use a portion of the City’s allotment of 2,250 public service messages. Staff will confirm this prior to the meeting Monday night. The City Attorney has prepared a restated and amended lease document for the Council’s consideration. The changes are few—to reflect the increased annual revenue paid in monthly installments, the public service messaging, the reimbursement of legal fees and reimbursement of the cost to purchase the luminance meter. All other provisions of consequence remain the same.