City Billboard Deal Creates New Revenue Stream
A new billboard deal for the City of Port Coquitlam will bring in over $5 million in additional revenue and in promotional value over the term of the agreement, while reducing the number of billboards around the community from 11 to four.
After considering multiple proposals, the city has entered into an agreement with Van Horne Outdoor Limited Partnership to install three digital sign board structures – two single-sided and one double-sided – on property owned by Canadian Pacific (CP).
The three structures started going up in June and the boards will be in operation by the end of the year. The 11 existing billboards posted on seven structures around the city will be removed before September.
“The new agreement not only creates additional revenue for Port Coquitlam, but provides free advertising space to the city and supports local businesses with a discount,” Mayor Greg Moore said. “It’s a great deal for the community and an example of how the city is always working to reduce the impact on taxpayers.”
The new digital boards will be similar to others that exist throughout Metro Vancouver. One double-sided board is being installed on the south side of Lougheed Highway at Oxford Street. Two single-sided boards are being installed on the CP overpass along Mary Hill Bypass (facing westbound and eastbound).
In 2015, the city’s revenue committee started considering allowing digital signage in Port Coquitlam on the premise it generated significant revenue and resulted in a reduction in the number of large traditional billboard type structures in the city.
“This agreement aligns with a key priority for Council: to find alternate sustainable revenue sources for the city,” said Councillor Glenn Pollock, who chaired the revenue committee while the deal was considered. “The funds we generate will be re-invested back into programs, services and projects that will benefit our residents.”
In addition to the revenue the deal will bring in for the City, Port Coquitlam businesses will also be given a 30 per cent discount to advertise on the billboards.
In return, Van Horne receives exclusive rights for off-premise (billboard) advertising in the city, limited to the three structures on CP property. The company is responsible for the cost of installing, maintaining and repairing the signs, as well as the costs of electrical and other utilities.
Over the coming months, the city will be developing a new policy for how it will spend the extra cash – similar to how other cities have developed policies for how they spend casino revenue.
In preparation for the new deal, Council adopted changes to the city’s sign bylaw in February to allow the digital billboards signs to be placed on CP property.
Chief Administrative Officer
City of Port Coquitlam