San Jose Ca.Gov
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File #: 18-840    Version: 1
Type: Transportation & Aviation Services Status: Agenda Ready
File created: 5/30/2018 In control: Airport Department
On agenda: 6/19/2018 Final action:
Title: Amendment to the Airport Advertising Concession Agreement with Clear Channel Outdoor, Inc.
Sponsors: City Council
Attachments: 1. Memorandum
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Amendment to the Airport Advertising Concession Agreement with Clear Channel Outdoor, Inc.


Adopt a resolution authorizing the City Manager to negotiate and execute a Sixth Amendment to the Airport Advertising Concession Agreement between the City of San José (“City”) and Clear Channel Outdoor, Inc. (“Clear Channel”) to:

a.                     Extend the term of the Agreement for an additional seven years from June 30, 2020 through June 30, 2027;

b.                     Effective July 1, 2020, adjust the Minimum Annual Guarantee (“MAG”) to increase annually by 2.5%, for a total MAG of $15,472,232 to the City over the additional seven-year term;

c.                     Require a minimum capital investment of $6.5 million by Clear Channel for its advertising facilities at the Airport, which converts currently approved static advertising sites to digital where practicable;

d.                     Effective upon the completion of construction, modify the percentage fees payable by Clear Channel for Options I (Fixed Display In-Terminal Advertising), II (Outdoor Advertising), and III (Transit/Bus Shelter Advertising) from 65% of Gross Revenues for Options I and II and 50% of Gross Revenues for Option III to 55% of Gross Revenues for each Option;

e.                     Add an additional advertising package “Foundation Brand Partnerships” at a percentage fee of 55% of Gross Revenues; and

f.                     Delegate authority to the Director to revise the media types and exhibit locations of all advertising packages.

CEQA: Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment. (Airport)