| In the over 300 billboard signs I have owned, only | | | | BUILD YOUR BILLBOARD IN AREAS THAT |
| two have been lost to development. I achieved | | | | CAN'T BE BUILT ON |
| this not out of sheer luck, although I have been | | | | If you want to sleep soundly at night, deliberately |
| lucky, but by being proactive about avoiding risks | | | | build your billboard within the setback |
| and mitigating the risks I can't avoid. In most | | | | requirements for whatever can be built on the |
| billboard ground leases, you have to give the | | | | land. For example, if your sign is on multifamily |
| property owner a right to terminate in the event | | | | land, and is less than 20 feet inside the property |
| of development. Obviously, few people will tie up | | | | line. Most billboard setbacks are less than the |
| their land for years when it might sour a huge | | | | building setbacks. I like to build signs right on the |
| development offer down the road. As a result, | | | | property line using " full-flag offset" monopole |
| your billboard is at risk of being removed at any | | | | designs that make this possible. I also like to build |
| time with so many days of advance notice. When | | | | on the edge of ravines or other obstructions that |
| this is the case, there are several things you can | | | | would also be impossible to build on. |
| do to reduce or eliminate this risk. | | | | DON'T GIVE UP WHEN YOU GET A |
| FLIP IT IF THE LAND IS HOT | | | | TERMINATION LETTER |
| Anyone can see land parcels that have a huge | | | | When you get a termination letter, which I hope |
| risk of immediate development. If you see a | | | | you never do, the first step is to cordially request |
| piece of raw land between two office buildings, or | | | | a meeting with the landowner. You still have |
| a piece of raw land between a Wal-Mart and | | | | several attempts to save the sign: |
| Home Depot, then you are looking development | | | | - Offer him more money. Sometimes, you can |
| right in the eye. Except for cases of | | | | "greenmail" your way out of your problem. If he |
| environmental pollution or unsuitable terrain, such a | | | | was getting 20% of the gross, offer to change |
| relationship makes buildings a billboard a bad idea if | | | | to a 50/50 split of the net, or some other highly |
| you are hoping for longevity. Don't skip this | | | | lucrative option. |
| location, just get a ground lease and permit and | | | | - Offer him one side of the sign for free for a |
| immediately sell it to another billboard company. | | | | certain period of time to promote his |
| You can use this capital to finance a more | | | | development. |
| permanent location. In just about every case in | | | | - Ask him to allow your sign to stay until the |
| which I predicted development, it has come to | | | | construction is completed (this can take about a |
| pass. Not that I'm some sort of mind-reader: it | | | | year). Sometimes, while your sign is still there, the |
| just made sense that the land was too hot not to | | | | development project crashes, and the whole |
| be developed in the near future. | | | | problem goes away (lost financing, lost anchor |
| ADD TWO PROVISIONS QUIETLY INTO YOUR | | | | tenant, etc.) |
| GROUND LEASE TERMINATION PROVISION | | | | - Offer to sell him the sign for what you have in |
| Be sure that your termination provision requires a | | | | it to become his own premise sign for the |
| building permit requiring removal of the billboard, | | | | development. |
| and that it also includes language restricting any | | | | If you follow these steps you will greatly reduce |
| billboard to be built on the property for a period | | | | or eliminate your exposure to losing your sign to |
| of at least 5 years. This is to ensure that the | | | | development. Being proactive can save you a |
| owner does not use the development "out" to | | | | fortune and a lot of mental anguish, which you |
| replace you with a higher paying competitor. | | | | can put to better use building more signs. |