August 23, 1999

To:Economic Development and Parks Committee

Administration Committee

From:Joe Halstead, Commissioner Economic Development, Culture and Tourism

Brenda Glover, Acting Commissioner Corporate Services

Subject:Third Party Outdoor Advertising on City Property and Assets - All Wards

 Purpose:

The purpose of this report is to examine issues relating to the development and implementation of a third party outdoor advertising program for City of Toronto properties and assets. We are also seeking Council's authorization to conduct a public consultation process regarding such advertising. The draft objective and principles for third party outdoor advertising contained in this report will form the basis for discussion during the community consultation process. The report also recommends that Council defer consideration of unsolicited proposals for third party outdoor advertising until Council has adopted a formal process for receiving, evaluating and making decisions on such proposals as part of a comprehensive third party outdoor advertising program.

Source of Funds:

Other than minor advertising expenses regarding public consultation, which will be accommodated within existing departmental budgets, there are no immediate financial implications.

Recommendations:

It is recommended that:

1. City Council endorse the draft objective and principles for third party outdoor advertising contained in this report, and authorize the Commissioner of Economic Development, Culture and Tourism, and the Acting Commissioner of Corporate Services, to commence a public consultation process regarding third party outdoor advertising, utilizing the draft objective and principles set out in this report as a basis for discussion;
2. the Commissioner of Economic Development, Culture and Tourism, and the Acting Commissioner of Corporate Services, report back to the Economic Development and Parks Committee, and the Administration Committee, respecting Recommendation 1, including in the report a draft third party outdoor advertising program which takes into consideration the input gained from the public consultation process;
3. Council's consideration of unsolicited proposals for third party outdoor advertising on City-owned property and facilities be deferred until Council has adopted a formal process for receiving, evaluating and making decisions on such proposals as part of a third party outdoor advertising program, subject to the deferral not including the proposed litter bin program which is currently under consideration, or any signage associated with City partnership or promotional initiatives; and
4. this report be forwarded to each Community Council for information purposes.

 Background:

City Council, at its meeting on July 29, 30 and 31, 1998, recommended the adoption of a report from the Commissioner of Corporate Services to terminate existing signboard agreements for certain non-conforming signboard locations, and to issue a tender to lease certain other locations. At the same time, Council recommended that a similar report be provided for former Metropolitan Toronto signboard agreements. City Council, at its meeting on November 25, 26 and 27, 1998, recommended that the existing signboard agreements continue until Council has adopted a City-wide policy. Council also directed a report be prepared regarding policies, process and criteria for tendering signboards, and that this report ensure that there will be more than one provider of these advertising services.

At its meeting on December 16 and 17, 1998, Council considered a report from the Commissioner of Economic Development, Culture and Tourism regarding outdoor advertising at City Parks and Recreation facilities. The report was prepared in response to several enquiries the Department had received from companies interested in placing outdoor advertising on City properties, buildings, facilities and equipment. Council adopted a recommendation that called for the establishment of a staff project team to examine issues related to this matter.

In addition, Council, at its meeting on March 2, 3 and 4, 1999, adopted a recommendation contained in a report from the Commissioner of Economic Development, Culture and Tourism to include the feasibility, planning criteria and revenue potential of billboard advertising on City-owned or maintained properties as part of the mandate of the staff project team noted above. The report was prepared in response to a communication from Councillor Silva respecting opportunities for revenue generation through billboard advertising.

In keeping with Council's direction, a staff project team was established in February of this year to identify and address issues pertaining to the development and implementation of a third party outdoor advertising program on City assets. The project team consists of staff from the following departments: Economic Development, Culture and Tourism, Corporate Services, Urban Planning and Development Services, and Works and Emergency Services. Staff from Heritage Toronto are also included in the project team.

In a related matter, Council has requested comments from the Community Councils with respect to their participation in a proposed program that entails the replacement of existing litter bins with new bins providing space for third party advertising.

Comments:

Existing Third Party Outdoor Advertising

Third party outdoor advertising is advertising which is located upon City-owned lands, buildings or facilities, but which is not related to City business, or that of its agencies, boards or commissions. Typically, the advertisements promote private sector corporations and their products or services. Outdoor advertising companies, subsequent to Council approval of sign locations, enter into a lease agreement with the City, erect the sign, and then lease the signage space to advertisers.

Currently, the City is engaged in several third party outdoor advertising initiatives including the leasing of City-owned lands for signboards, and advertising on and in TTC buses, bus shelters, and subway stations. The Parking Authority has erected a series of ground signs that include space for third party advertising. In addition, Council currently has before it a proposal to permit third party outdoor advertising on street litter containers.

Corporate Sponsorship Program Initiative

City staff are preparing a Corporate Sponsorship Program for Council's consideration through which the City will develop an on-going, long term relationship with one selected company in each of a number of targeted business categories. The category sponsor will receive a package of entitlements from the City, which may include provisions for outdoor advertising on City assets, in exchange for an annual sponsorship fee. Sponsors will also be expected to promote their association with the City through support of events and other City-related activities.

Third party outdoor advertising is not the same as corporate sponsorship. In third party advertising, the City simply enters into an agreement to allow a media corporation to lease space on a City asset on which to erect advertising signage. It is the responsibility of the outdoor advertising company, not the City, to secure advertisers for the signage space, and other than the terms of the agreement, there are no additional responsibilities or entitlements on behalf of the City or media corporation.

Issues Identified

The staff project team agreed that third party outdoor advertising has the potential to generate significant revenues for the City. The team also agreed that a hastily designed and implemented third party outdoor advertising program could have serious ramifications with respect to the quality, compatibility and legal conformity of third party signage, and the program's acceptance by residential and business communities, and users of City parks, buildings and facilities.

The project team has identified the following issues that it recommends be addressed in designing and implementing a third party outdoor advertising program:

-maintaining the aesthetic and functional integrity of City assets, such as parks, buildings and recreational facilities, used for third party advertising;

-the impact of a new third party outdoor advertising program upon existing third party advertising contracts and leases;

-the impact of third party outdoor advertising signage with respect to liability issues and the structural integrity of buildings and facilities;

-the impact of third party advertising on road allowances with respect to public safety, visual effect on streetscapes and neighbourhoods;

- the content of third party advertising with respect to issues such as product, target audience, discrimination and accuracy of message;

-the design of third party signage and the need for detailed design guidelines to be professionally developed and adopted by Council;

-the lack of a harmonized Sign By-law;

-the authority of Council to demand the removal of inappropriate advertising;

-defining the difference between third party advertising and corporate sponsorships;

-the allocation of revenue generated by the program; and

-the potential of increased reliance of core City services and programs upon the availability of City assets for advertising purposes.

Draft Objective and Principles for Third Party Outdoor Advertising

To help address the issues noted above, the project team has developed the following draft objective statement and principles for third party outdoor advertising on City property and assets. Due to the visible and sensitive nature of outdoor advertising, the project team recommends that broader consultation on the objective and principles of third party outdoor advertising be undertaken to ensure that community concerns have been sufficiently identified and addressed. Combined with the list of issues noted above, the draft objective and principles will form a basis for discussion during the public consultation process.

Draft Objective:

To restrict third party outdoor advertising to those initiatives which maintain the visual aesthetics and integrity of City-owned assets, are sensitive to the character of the City's neighbourhoods, and are acceptable to community stakeholders.

Draft Principles Respecting Third Party Outdoor Advertising on City Assets:

• the content of third party outdoor advertising shall conform to the Advertising Content Guidelines, as adopted by Council; (still to be developed)

• the design of third party outdoor advertising signs shall conform to the Signage Design Guidelines, as adopted by Council; (still to be developed)

• all third party outdoor advertising signs shall conform to all applicable by-laws and legislation;

• third party outdoor advertising shall be prohibited within or immediately adjacent to:

-passive parkland areas generally described as those where leisure activities take place such as walking or reading;

-ravines and other naturalized open spaces; and

-children's playgrounds, wading pools or waterplay facilities;

• in those parkland areas where active recreational uses take place, third party outdoor advertising shall only be permitted so as not to interfere, physically or visually, with the use or enjoyment of sports fields, swimming pools or other such facilities;

• third party outdoor advertising shall be prohibited on heritage buildings, heritage properties and other heritage assets;

• within road allowances:

-third party advertising may be permitted on street furniture, provided that such advertising does not detract from public safety, streetscape aesthetics, or from the residential amenity or business interests of the surrounding community;

-the addition of new freestanding outdoor advertising structures shall not be permitted unless the structure also serves the public interest and community objectives as may be determined by Council. The placement of any such structures shall not detract from public safety, from pedestrian or vehicular use of the right-of-way, streetscape aesthetics, or from residential amenity or business interests of the surrounding community; and

-third party advertising shall not be permitted on bridges or overpasses.

• third party outdoor advertising may be permitted on City-owned buildings and structures subject to legal liability issues, the compatibility of the proposed signage with the building's character, and the structural and functional ability of the building or facility to accommodate signage;

• during the sign approval process, the City may request that a portion of a proposed outdoor advertising sign be made available for the City of Toronto logo, public announcements or public service messages, at no cost to the City;

• City Council, or its designate, shall retain the authority to approve the location of all third party outdoor advertising signage on City-owned property;

• prior to Council's consideration, proposals for third party advertising shall be evaluated by an interdepartmental staff team who shall have regard for the advertising content and signage design guidelines; and

• the City shall reserve the right to demand the removal of any third party outdoor advertising which does not, in the opinion of the City, conform to the Advertising Content Guidelines or Signage Design Guidelines noted above.

The principles noted above reflect the concerns of the staff project team that third party outdoor advertising could have considerable negative impacts upon the City's more environmentally, aesthetically and socially sensitive assets such as passive parkland, natural open spaces, roadways, heritage buildings and properties, and playgrounds.

The principles regarding advertising content and signage design guidelines are proposed to help ensure that third party outdoor advertising is not offensive to community sensitivities, and is designed to complement, not detract from, the character, structural integrity and functionality of buildings and properties on which the signage is located. In addition, one of the proposed principles reserves Council's authority to demand the removal of any third party outdoor advertising which does not conform with the content and signage design guidelines.

Public Consultation

Given the potential negative impacts of a third party outdoor advertising program on City-owned lands, buildings and facilities, the staff project team recommends that a public consultation process be developed and implemented this year. The purpose of the consultation will be to discuss and confirm those issues identified by the staff project team, identify other issues, and obtain input on the draft objective and principles. The input received through the public consultation will be considered during the development of a draft third party outdoor advertising program. The consultation process will involve resident groups, business associations and other stakeholder organizations such as recreation advisory councils, arena boards of management, and cultural, heritage and environmental groups, that utilize City parks, buildings and facilities. The process will also include representatives from the sign industry.

Interim Process for Considering Third Party Outdoor Advertising Requests

Recently, there have been several requests from signage companies seeking approval to erect third party outdoor advertising signage within City road allowances and public squares. Currently, there appears to be no consistent, City-wide process for reviewing such requests. Given the sensitive nature of this issue, its potential negative impacts upon City assets, and the need for consistency in the City's approach, the project team recommends that Council defer consideration of unsolicited proposals for third party outdoor advertising on City-owned property and assets until a formal process for receiving, evaluating and making decisions on such proposals has been adopted by Council as part of a comprehensive third party advertising program.

The recommended deferral shall not include the proposed litter bin program which is currently under consideration. In addition, the deferral shall not apply to signage associated with City partnership or promotional arrangements. For example, the Economic Development, Culture and Tourism Department is currently developing a partnership initiative with private sector businesses to erect Gateway signs, which may include corporate advertising, at strategic entry locations to the City.

Conclusion:

As directed by Council, a staff project team has been assembled to identify and address issues pertaining to third party outdoor advertising on City assets. This report identifies several of these issues and presents a draft objective statement and principles that will assist in conducting a community consultation process which will lead to the development of a sensitive and consistent third party outdoor advertising program.

It is recommended that the staff project team be authorized to conduct public consultation to obtain additional input. It is also recommended that Council defer consideration of proposals for third party outdoor advertising until Council has adopted a formal process for receiving, evaluating and making decisions on such proposals as part of a comprehensive third party outdoor advertising program. The recommended deferral shall not include the proposed litter bin program which is currently under consideration and shall not apply to signage associated with City partnership or promotional arrangements.

Contact Names:

Winnie Li

392-8183

Sal Dominicis

397-0806

Diane Stevenson

392-0098

Joe HalsteadBrenda Glover

Commissioner Economic DevelopmentActing Commissioner

Culture and TourismCorporate Services