Westminster City Council
SUBJECT
Title
Operating Agreement with 6260 Westminster Blvd B, LLC to Allow the Development and Operation of a Digital Billboard at 6260 Westminster Boulevard.
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Ryan Salz, Senior Management Analyst
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RECOMMENDED ACTION
Recommendation
A. Adopt a Resolution entitled, “A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA APPROVING AN OPERATING AGREEMENT WITH 6260 WESTMINSTER BLVD B, LLC TO ALLOW THE DEVELOPMENT AND OPERATION OF A DIGITAL BILLBOARD AT 6260 WESTMINSTER BOULEVARD;” and
B. Authorize the execution of the Operating Agreement with 6260 Westminster Blvd B, LLC.
BACKGROUND
The City of Westminster Strategic Plan identified “Achieve Financial Stability” as Goal #1 in the 2022-2025 Strategic Plan and was reaffirmed in the recently adopted 2025-2028 Strategic Plan. One of the core objectives originally outlined for the goal was to develop creative ways to generate additional revenue. Westminster’s distinct placement along two major freeways, SR-22 and I-405, has long made it a prime location for billboard development, but the focus on billboards to generate municipal revenue has only been considered and pursued by the City in recent years. The implementation of electronic (or “digital”) billboards along freeways throughout the City was among the ideas presented to the Mayor and City Council for consideration in 2022. Upon receiving direction by the Council, staff engaged in various efforts to encourage the development of digital billboards. A research-driven process was conducted by staff that resulted in the adoption of the “Billboard Ordinance” (Section 17.330.090 of the Westminster Municipal Code) on April 9, 2025. The ordinance replaced outdated standards that were over two decades old, creating more detailed requirements for freeway-oriented billboards that better align with what was observed in ordinances of surrounding Southern California cities and reflect current industry practices and technological advancements.
Stakeholders in the billboard industry, local property owners, and developers took notice of the City Council’s positive discussions and actions related to digital billboards. As a result, the City began to receive applications to develop and operate digital billboards. The project application for the property located at 6260 Westminster Boulevard is the first to be evaluated by staff and presented to the Planning Commission using the development and design standards defined in the recently adopted Billboard Ordinance. The original application was submitted before the Billboard Ordinance was adopted and was later revised by the applicant to ensure it complied with the updated standards. The applicant, AGE Advertising LLC, requested approval of a Conditional Use Permit (“CUP”) to construct a 90-foot-tall digital billboard with two advertising displays measuring 20 feet in length and 60 feet in width. The LED displays will be mounted in a “V” configuration atop a single support column. Attachment 1 provides a map identifying the approximate location of the proposed digital billboard and nearby signs for reference.
Staff conducted a comprehensive review of the application that included the following specialized materials: renderings from many viewpoints that included surrounding areas not directly along the freeway, a written justification of the overall height, and a lighting study prepared by the applicant and independently reviewed by the City’s consultant. On October 1, 2025, the Planning Commission considered the application, along with staff’s affirmative recommendation, and unanimously approved the CUP. Attachment 2 includes the Planning Commission staff report, including all attachments and the Resolution approving the CUP. In accordance with the Billboard Ordinance, Condition No. 7 of the CUP states, “The Conditional Use Permit approval shall not be effective or vested until the applicant executes an operating agreement with the City, in a form approved by the City Attorney, specifying the community benefits to be provided to the City and acknowledging the conditions and restrictions of the Conditional Use Permit.” The Operating Agreement is separate from the Planning Commission approval of the land entitlements and must be approved by the Mayor and City Council.
6260 Westminster Blvd B, LLC (“Developer”) is the developer of the property located at 6260 Westminster Boulevard and worked closely with AGE Advertising, LLC on the project application. This is the entity that would enter into the proposed Operating Agreement with the City if approved by the Council. The Developer worked collaboratively with the City to finalize the Operating Agreement and has offered favorable terms that would provide several benefits to the City (Attachment 3). The community benefits from the digital billboard would include the following:
• An annual Development Payment paid by the Developer to the City, starting at $340,000 per year. The annual Development Payment shall be increased by 10% every five years to account for inflation (e.g., the amount will increase to $374,000 in the sixth year). Based on the 30-year term, the total value of the payments to the City will equal $13,116,537 by the end of the agreement. The Development Payment shall be paid in equal quarterly installments. The first two quarterly payments shall be paid within 125 days of the digital billboard becoming fully operational.
• Free City advertising space for Public Service Announcements will be provided on a space-available basis for up to two four-week periods (eight weeks total) in each calendar year. Advertisements may include City-sponsored event announcements and non-commercial public service announcements.
• Emergency messaging, such as Amber Alerts, will be provided with advertising space as reasonably necessary and in accordance with applicable guidelines and laws.
• Local businesses shall be given a 10% discount off the applicable rates for advertising on the digital billboard. A local business will be defined as any business that is a member of the Westminster Chamber of Commerce or has a headquarters or main office in the City, along with a valid business license.
• Advertisements for tobacco, marijuana, gentlemen’s clubs, adult entertainment businesses, and sexually oriented materials shall not be allowed to ensure safe and appropriate messaging to the community.
The terms of the proposed Operating Agreement are unique to this site and project characteristics. However, the terms are in line with recent agreements that have been executed in Westminster and other Orange County cities including Fountain Valley, Garden Grove, Santa Ana, Fullerton, and Orange. Some of the most significant variables that can affect the potential impact of a digital billboard include whether the subject billboard is new or being replaced, the size of the advertising displays, and the daily vehicle traffic counts on the adjacent freeway. When developing the terms of an operating agreement, these variables and other factors are considered to assess the value of the Development Payment and accompanying community benefits.
Adoption of a Resolution by the Mayor and City Council is required to approve the Operating Agreement (Attachment 4). If the Council approves the Operating Agreement, the Developer will have acquired all discretionary local approvals necessary to proceed with the submittal of a building permit application which includes construction drawings. However, they will still be required to obtain State permits from Caltrans before they are allowed to proceed with the development. The Developer expects to obtain their State permits in 2026 and to be operational by the end of the calendar year.
FISCAL IMPACT
The total value of the Development Payments due to the City over the course of the Operating Agreement is $13,116,537. This amount would be collected over a thirty-year period beginning when the digital billboard becomes fully operational. These payments will be deposited directly into the General Fund, General City Revenue Account (20000-39090).
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The Mayor and City Council have expressed an interest in the development of digital billboards as a creative revenue opportunity to achieve financial stability for the City. The project application for the property located at 6260 Westminster Boulevard was approved by the Planning Commission on October 1, 2025. Per Condition No. 7 of the awarded CUP, the applicant must execute an Operating Agreement with the City for the CUP to be considered effective. The Operating Agreement establishes many terms and conditions related to the operation of the development, as well as multiple City and community benefits to be provided by the Developer. Staff recommends that the Mayor and City Council approve the Operating Agreement and adopt the Resolution.
ATTACHMENTS
1. Map of Location
2. Planning Commission Staff Report and Attachments - October 1, 2025
3. Draft Operating Agreement
4. Draft Resolution
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager