January 26, 1999

To:Economic Development Committee

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

Subject:Proposed Billboard Advertising on City-owned/Maintained Properties

Purpose:

This report is prepared in response to a communication dated October 15, 1998, from Councillor Mario Silva requesting the Department to investigate and report back on the feasibility, planning criteria and revenue potential for the City if it were to undertake lease agreement for billboard advertising on appropriate City owned or maintained properties.

Economic Development Committee received and approved a report dated December 2, 1998, recommending the establishment of a project team to examine issues related to outdoor advertising in the context of developing future policies, and prepare a report a how to generate and implement outdoor advertising revenue opportunities at Department administered properties in a consistent, comprehensive and competitive manner.

This report recommends that billboard advertising be included in this project team's scope of study, and that one future report to the User Fee Committee be prepared.

Source of Funds:

Not applicable as such initiatives in the future will result in new revenues yet to be determined.

Recommendations:

It is recommended that:

1. this report be received for information;

2. the project team established to examine issues related to outdoor advertising at City parks and recreation facilities include in its scope of study the feasibility, planning criteria and revenue potential of billboard advertising on city owned or maintained properties; and

3. the appropriate City officials take the necessary action to give effect thereto.

Background:

Economic Development Committee received a communication dated October 15, 1998, from Councillor Mario Silva requesting the Department to investigate and report back on the feasibility, planning criteria and revenue potential for the City if it were to undertake lease agreements for billboard advertising on appropriate City owned or maintained properties.

The Councillor went on to say "in particular, as the new City of Toronto is now responsible for maintaining the entire Gardiner Expressway, it would only be appropriate for the City to investigate ways such as this to recapture ongoing costs. Finally, the City's extensive network of arterial roads must contain many appropriate locations for this type of revenue generation. Obviously, staff will have to suggest ways to maintain a balance between esthetics and revenue for the City."

Comments:

In a previous report dated December 2, 1998 to Committee dealing with a similar matter, the Department reported that in recent months, both the Department and its Parks and Recreation Division have received a number of inquiries from companies interested in the sale and placement of outdoor advertisements on City properties. These overtures ranged from billboard advertising and outdoor pool advertising to advertising on waste receptacles on City parks.

The Department firmly supports and believes that appropriate outdoor advertising at Department administered facilities can be a key element in revenue generation for financing programs and services for the public. However, the Department also believes that such outdoor advertising program must be generated and administered in a consistent, comprehensive and competitive manner throughout the City and across the range of facilities.

The Department as in its previous report recommends that an inter-departmental project team be established to:

1.examine issues related to outdoor advertising at Department administered facilities

2.assess this billboard proposal and several other related proposals

3.work closely with Legal, Purchasing and the Corporate Sponsorship Committee

4.prepare a report on how to generate and implement outdoor advertising revenue opportunities at Department administered properties in a consistent, comprehensive and competitive manner.

Conclusion:

The Department supports revenue enhancement opportunities as described in this report. The Department must ensure, however, that such initiatives comply with City policies and procedures, and that their implementation and administration are consistent, comprehensive and competitive throughout the City and meets the interests of all parties concerned. The project team will enable the Department to review the issues in great detail, and prepare a comprehensive report related to outdoor advertising at Department administered properties.

Contact Name:

Winnie Li

Manager of Promotion and Communications

Telephone: 392-8183

Fax: 395-0388

Joe Halstead

Commissioner, Economic Development, Culture and Tourism