BILL ANALYSIS AB 1117 Page 1 Date of Hearing: April 25, 2007 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Alberto Torrico, Chairman AB 1117 (Benoit) - As Amended: February 22, 2007 SUBJECT : Outdoor advertising SUMMARY : Deems an advertising display erected by a city or county to advertise businesses operating within a redevelopment agency project area, or within a business improvement district whose boundaries partly or wholly overlap those of the redevelopment agency project area, to be on the premises at any location within 1,000 feet of the legal boundaries of the redevelopment agency's project area if the display meets certain conditions. Specifically, this bill : 1)Provides that an advertising display erected by a city or county to advertise businesses operating within a redevelopment agency project area, or within a business improvement district, as defined, whose boundaries partly or wholly overlap those of the redevelopment agency project area, may be considered to be on the premises at any location within 1,000 feet of the legal boundaries of the redevelopment agency's project area if all of the following conditions apply: a) No other display is erected in that city or county, as specified. b) No other display is erected within any redevelopment project area the boundaries of which are within 1,000 feet of the display, as defined. c) The display complies with all requirements as defined. d) The placement of the display will not necessitate the immediate trimming, pruning, topping, or removal of existing trees in order to make the display visible or to improve visibility unless done as part of the normal landscape maintenance activities that would have been undertaken without regard to the placement of the display. e) The display would not cause a reduction in federal-aid highway funds, as provided. AB 1117 Page 2 1)Provides that if the advertising display erected pursuant to this section is removed for purposes of a transportation project undertaken by the department, the display owner shall not be entitled to monetary compensation for its removal. 2)Provides that any display erected pursuant to this section may remain in place only until completion of the redevelopment project, as specified. 3)Provides the display permit shall expire after five years unless the business improvement district permit has been renewed for an additional 10 years and the local government requests an extension of the state permit, as specified. EXISTING LAW : 1)Establishes the Act, which regulates the placement of advertising displays adjacent to and within specified distances of highways that are part of the national system of interstate and defense highways and federal-aid highways. The Act prohibits any advertising display from being placed or maintained on property adjacent to a section of a freeway that has been landscaped if the advertising display is designed to be viewed primarily by persons traveling on the main-traveled way of the landscaped freeway. 2)Provides for limited exemptions and specified exceptions to the prohibition on advertising along system and landscaped freeways, including exemptions for signs advertising the property's sale or lease, signs designating the premises or its owner, and signs advertising goods or services manufactured or produced on the property itself. 3)Allows a single advertising structure exemption for each of several cities, including an exemption for advertising on "street furniture" in San Francisco, several billboards situated on the grounds of the Oakland-Alameda County Coliseum complex, and structures within the Mid-City Recovery Redevelopment Project Area within Los Angeles. FISCAL EFFECT : Unknown COMMENTS : AB 1117 Page 3 Purpose of the bill . In essence, this bill was introduced to allow the City of Riverside to erect a sign on city-owned property adjacent to the 91 Freeway in order to advertise the Riverside Plaza shopping complex. According to the author, this bill is needed to highlight local destinations in the area, in order to bring greater economic activity into the community and the Riverside Plaza. Many motorists passing through the area are unaware of the Riverside Plaza, or do not think of it as a destination, simply because it is located a few blocks off the 91 Freeway in Riverside. The author notes that the City of Riverside planned to erect an outdoor advertising sign on a city owned parcel adjacent to the freeway where landscaping could not exist because of an existing electric substation. However, the city was informed by CalTrans that this particular segment of the 91 Freeway is designated as a "Landscaped Freeway" pursuant to the Act. For this reason, neither the Riverside Redevelopment Agency nor the developer can erect a sign on this particular section of freeway without intervention. The author states that a sign to advertise the newly renovated Riverside Plaza is imperative to ensure the success of this redevelopment project, by attracting shoppers from adjacent area's and the nearby freeway. Proponents note that the Riverside Plaza, in the heart of Riverside's Magnolia Center was constructed in the mid-1950s, prior to the construction of the 91 Freeway, and was renovated in the mid-1980s. Unfortunately, unlike its competitors, the Riverside Plaza does not have exposure to the freeway and sales have steadily declined. With the assistance of the Riverside Redevelopment Agency, a developer demolished and rebuilt the Center. Once this state-of the-art shopping complex is complete, it is imperative that it have freeway exposure in order to draw patrons to assure a successful economic future. The Riverside Plaza is slated for numerous new retail outlets in addition to Gottschalk's Department Store, Trader Joe's, Savon Drugs, and Island's Restaurant. Background . The Act regulates the placement of advertising displays (i.e., billboards) and signs along interstate or primary highways, landscaped freeways and similar specified highways. It sets standards for the structures, including their AB 1117 Page 4 size, identification and location, and requires compliance with application procedures and conditions administered by Caltrans. Under existing law, no billboards may be placed on property adjacent to a section of freeway that has been landscaped. Current exemptions include individual signs that: a) identify development projects, business centers, or associations located within the jurisdiction of, and sponsored by, the City of Richmond to support economic development activities; b) identify development projects, business centers, or associations located within the jurisdiction of, or sponsored by, the City of Costa Mesa to support economic development activities; and, c) is in a city in Los Angeles County whose population is less than 17,000, whose annual budget is less than $8 million, and whose area is 1.7 sq. miles (Artesia). This bill would authorize an advertising billboard or structure that is nonconforming to both the specifics and intent of the Act, which is to limit or prohibit highway-adjacent advertising structures. It would extend further the precedent for approval of at least seven other similar billboard exemptions granted in prior legislation since 1995. Prior legislation . AB 1499 (Benoit) of 2006. Creates an exemption to the Act, to permit the City of Riverside to erect an outdoor advertising display along Highway 91 to promote economic activity for the Riverside Plaza. (Vetoed by Governor) AB 801 (Jones) of 2006. Creates an exemption from the Outdoor Advertising Act for one sign in the County of Sacramento. (Vetoed by Governor) AB 2441 (Klehs) of 2006. Authorizes an advertising display in the redevelopment zone of the City of San Leandro subject to specified conditions. (Vetoed by Governor) AB 1518 (J.Horton) of 2006. Exempts, from the prohibition against placing advertising displays adjacent to landscaped freeways, any billboard located on property owned by the Lennox School District, subject to certain conditions. (Died pending Concurrence in Assembly) AB 762 (Nunez), Chapter 725, Statutes of 2003, creates an exemption to the Act by allowing the National Latino Arts AB 1117 Page 5 Council to place an advertisement on the roof of a not-for-profit educational academy. SB 190 (Perata) Chapter 54, Statutes of 2001. Exempted a certain development of highway advertising in Oakland from existing laws protecting landscaped highways permitted the City of Artesia to erect an advertising display alongside a landscaped highway. Permitted the City of Artesia to lease one billboard space adjacent to the 91 Freeway on city property. REGISTERED SUPPORT / OPPOSITION : Support City of Riverside Greater Riverside Chambers of Commerce Riverside Plaza Southwest California Legislative Council Opposition None on file. Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531