STAFF REPORT. Date: March 22, Mayor and City Council. Bill Thomas, Acting City Manager

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1 STAFF REPORT Date: March 22, 2017 To: Thru: Mayor and City Council Bill Thomas, Acting City Manager Subject: J.4. Staff Report (For Possible Action): Presentation, discussion and potential direction to staff regarding Title 18 amendments related to Off- Premises Advertising (Billboards). [4:00PM Time Certain] From: Claudia Hanson, Planning Manager Summary: City Council directed staff to bring forward options on potential revisions to the offpremises advertising display (billboard) ordinance. The three primary issues on this topic are Banking, Location, and Exchange Ratio. The staff report contains a summary of the existing standards, discussion of the issues, and staff recommendations. Previous Council Action: February 8, Council adopted a final moratorium which allows existing banked receipts to be exchanged for the construction of conforming static billboards. The time period remaining on all banked receipts will be extended (29) twenty-nine days to reflect the duration of the pending moratorium which was passed and adopted on January 11, The final moratorium halts the banking of billboards and the issuance of any permits for digital billboard application requests. January 11, Council adopted a 30 day pending moratorium affecting the acceptance of any billboard application requests and temporarily freezing the banking of billboards and the creation of banked receipts to implement a plan to address existing receipts in the bank and amend related provisions of RMC December 14, Council received an update on the status of billboards within the City of Reno. At this meeting direction was given to bring back a moratorium and a revised ordinance to honor the voters initiative of 2000 to prohibit the issuance of permits for the construction of off-premises advertising displays/billboards. Background: The construction of new billboards was prohibited on November 7, 2000 through General Election, Question R-1. The City has always maintained that Question R-1 capped the total number of billboards allowed within the city, but did not preclude the repair, banking, relocation, or upgrading of the existing billboard stock within the city.

2 At the direction of City Council, between 2007 and 2012, staff developed an ordinance to allow digital off-premises advertising displays. This ordinance was in response to the above mentioned interpretation and provides guidance for billboard owners who wish to modify their current static billboards with the new digital billboards. City Council adopted Ordinance No in October, In anticipation of lawsuits related to the adopted ordinance, the City Council adopted a moratorium on the acceptance of any application related to digital billboards at the February 13, 2013 meeting. The moratorium has been extended three times since adoption and is scheduled to expire on February 1, 2017 (Resolution No. 8152). As anticipated, shortly after the ordinance adoption, two lawsuits were filed against the City of Reno challenging, among other things, the constitutionality of the Digital Off-Premises Advertising Display Ordinance. On June 29, 2016, the Nevada Supreme Court affirmed the City s digital off-premises advertising display ordinance. On August 3, 2016, however, the Nevada Supreme Court granted Scenic Nevada's Petition for Rehearing in Scenic Nevada, Inc. v. City of Reno. The City filed an answer and the Nevada Supreme Court denied Scenic Nevada's Motion for Rehearing. As a result, the prior order affirming the City's Digital Billboard Ordinance stands. Off-Premises Advertising Displays: Chapter 18.16, Article II, provides the standards and requirements for locating off-premises advertising displays in the City of Reno. It also describes the restrictions, permitted and prohibited locations, prohibited types, relocation process and permit requirement, reporting process, conversion requirement for static to digital billboards, temporary billboards, and a moratorium on conversion of static to digital billboards. Permitted Locations: Off-premise advertising displays are permitted in the AC, CC, I, IB, and IC zoning districts when located within 100 feet of the edge of right-of-way of a minor or major street or freeway. Billboards are also permitted in the Mixed Use (MU) Districts, where billboards were permitted in the zoning district preceding the MU zoning district. Maps have been attached to this report showing the zoning districts within the City limits which allow offpremise advertising displays. No billboards shall be located closer than 750 feet to the next billboards on either side of the same street. No digital billboards shall be located closer than 1,000 feet to the next digital billboards on either side of the same street. Prohibited Locations: Billboards are prohibited in the following locations: 1. Within or above right-of-way line of any street 2. On any property without consent of owner

3 3. Within 300 feet of centerline of Truckee River or within 300 feet of outer boundary of Truckee River Corridor or designated Open Space adjacent to Truckee River 4. Within 300 feet of residentially zoned parcel on same side of street 5. Number of billboards within 300 feet of the following areas (Restricted Area) shall not exceed the number of legal billboards in that area on July 1, 2012: a. I-80, Robb Dr. to west City limit b. US-395, Panther Dr. to north City limit c. Downtown Reno Regional Center Plan d. East 4 th St. Transit Corridor e. Mill St. Transit Corridor f. Medical Regional Center g. Wells Ave. Neighborhood Plan h. Midtown District, and i. Northern section of South Virginia St. Transit Corridor If any billboards are removed from the above Restricted Area the maximum number of billboards allowed in the identified area shall be reduced accordingly. 6. Within 200 feet of McCarran Blvd. except within: a. Talbot Lane east to Mill St. b. Northtowne Lane west to Sutro St. 7. Number of billboards within 300 feet of centerline of US-395 from Patriot Blvd. to Neil Rd. shall not exceed seven. 8. Number of billboards within Cooperative Planning Areas regulated by Washoe County shall not exceed the number at annexation 9. Within Historic or Conservation Districts Digital Billboards are further prohibited in the following locations: 10. Within 1,000 feet of primary or secondary school building or residentially zoned parcel on same side of street. 11. Within 300 feet of following right-of-ways: a. SR-431 (Mt. Rose HWY) b. I-80 west of Garson Dr. to City limit c. I-80 between East Verdi exit and Robb Dr.

4 d. US-395 north of McCarran Blvd. Banked Billboards may be relocated to any parcel with the correct zoning, assuming the proposed location is not located within a prohibited location, the billboard meets the general standards, and the appropriate permitting is obtained. Banked receipts have expiration dates. If a bank receipt expires the associated billboard is no longer able to be relocated. Billboards removed prior to July 19, 2012, have 15 years to apply for and obtain a sign permit to relocate. Billboards removed after July 18, 2012, have three years. The current banked billboards have expiration dates ranging from 2017 to In order to relocate an existing billboard, an owner must demolish the existing sign and receive a receipt from the city which credits them the size of the removed sign. This is referred to as placing the sign in the bank. The banked receipt is then required to be attached to any application to relocate the credited sign. Static Billboards Relocation Criteria: Two permits are required prior to relocation or banking of an existing, legally established, billboard. The first permit is required to remove the existing billboard and bank. The second permit is required to relocate the billboard to a different location. The existing billboard must be completely removed and the site returned to a condition consistent with its surroundings prior to issuance of the permit to relocate. Relocated billboards may be built up to the size of the banked billboard. Relocated billboards that are proposed to be increased in display area will require a 2:1 removal to relocation ratio prior to issuance of the permit for relocation. Digital Billboards Relocation Criteria: Prior to approval of a permit for a digital billboard, documentation from the applicant is required showing the exchange of banked receipts. The following table lists the ratio of banked receipts for each new digital billboard. The ratio is dependent on the location of a proposed digital billboard. The Restricted Area is defined above. Digital Billboard Location Removal to Relocation Ratio Within the Restricted Area as listed Removal of Billboards within the Restricted Area above and within Section totaling 4X square footage of proposed Billboard (b)(5) Removal of 8X square footage of banked receipts A combination of the two above can be used to accomplish an equal ratio Outside the Restricted Area as listed Removal of existing Billboard or banked receipts above and within Section totaling 2X square footage of proposed digital (b)(5) Billboard According to the above ratio, if all the existing 89 static billboards located within the Restricted

5 Area were removed and converted to digital billboards, there could be approximately 22 digital billboards within the Restricted Area. If the 114 static billboards located outside the Restricted Area were removed and converted to digital billboards to be located outside the Restricted Area, there could be 57 digital billboards outside the Restricted Area. This all depends on spacing criteria and ownership of the land and billboards. Every billboard removed or banked receipt exchanged to construct a digital billboard shall not be replaced or banked and the maximum number of billboards shall be reduced accordingly. For digital billboards, an application for a Special Exception, in lieu of a variance, may be submitted if an applicant is not able to demonstrate compliance with Chapter The City Council shall review and decide on all digital billboard special exceptions. The Special Exceptions are intended to alleviate exceptional practical difficulties or undue hardship arising from the strict application of some of the location and exchange ratio standards described above. The Special Exceptions address unique situations that were not caused by the applicant s act or omission. Discussion: City Council directed staff to return with options for amendments of the standards related to billboards. Below are the key sections of the billboard regulations. Staff is seeking guidance on Banking, Location, and Exchange Rates as they relate to billboards. Attached to this report is the map of the ±182 existing static billboards. Banking In order to relocate an existing billboard, an owner must demolish an existing sign and receive a receipt from the City which credits them the size of the removed sign. This is referred to as placing the sign in the bank. The banked receipt is then required to be attached to any application to relocate the credited sign. This allows an applicant to relocate, shift, move or reconstruct a billboard that for whatever reason was demolished. Banked receipts are issued with definitive expiration dates. There are approximately 82 active banked receipts. Billboards removed prior to July 19, 2012, have 15 years to apply for and obtain a sign permit to relocate. Billboards removed after July 18, 2012, have three years. Banked billboards may be relocated to any parcel with the correct zoning, assuming the proposed location is not located within a prohibited location, the billboard meets the general standards, and the appropriate permitting is obtained. With approximately 82 active banked receipts there is adequate availability of receipts in order to allow for new construction. Banked receipts are transferable, which has occurred in the past. Banked receipts create a cumbersome and detailed process to allow new construction. With any amendment to the billboard ordinance the ongoing banking system continues the liability and

6 commitment the City has to allow the construction of billboards. To curtail the liability to validate any future construction of billboards, staff recommends that the proposed ordinance include wording to no longer allow demolished billboards to be placed into the banking system. This would allow the 82 active banked receipts to be exchanged prior to their expiration. This would be more in line with the voter s initiative of 2000 than the existing banking system. Location discussion Static billboards are allowed in the Industrial (I), Industrial Business (IB), Industrial Commercial (IC), Arterial Commercial (AC) and Community Commercial (CC) zoning districts. They are also allowed in the Mixed Use (MU) zoning district where the zoning was one of the above zoning districts prior to the adoption of MU zoning. Restricted and prohibited areas and spacing criteria are identified in the Background section above. Direction from City Council at the December 14, 2016 meeting was to more closely follow the voters initiative of The introduction of digital billboards into the City of Reno could be argued to be conversion of existing or banked static billboards. However, digital billboards are an intensification of off-premises advertising displays which would be in violation of the Voters initiative. Staff recommends that digital billboards be not allowed within the City of Reno at this time. The regulation and/or prohibition of digital billboards would promote the governmental interest to enhance aesthetics, limit driver distraction, and preserve neighborhood character. Should digital billboards be allowed, staff recommends that they only be allowed in a small area to determine the impact on the community. Digital billboards are not appropriate on surface streets especially in established residential or mixed use neighborhoods. Should digital billboards be allowed, staff would recommend that they are only allowed along Highway 395/580 between North McCarran and South McCarran. This area already has one digital billboard on Reno Tahoe Indian Colony property and the Grand Sierra Resort on-premises sign. The surrounding properties are primarily zoned commercial and industrial. Zoning and spacing criteria would not allow for billboards in the immediate area surrounding the small amount of single family residential in the area. Staff recommends that if digital billboards are allowed in this area they only be allowed in exchange for existing billboards located on surface streets. This would further reduce existing visual clutter in established neighborhoods and targeted redevelopment areas. Exchange Ratio discussion There is an established exchange ratio of 1:1 within Title 18 to construct static billboards. This requires at least a 1:1 removal requirement, of existing or banked receipts, for new construction

7 of a static billboard. The adopted removal requirement for digital billboards is listed in the background portion of this report. With the continued efforts to reduce clutter from surface streets and neighborhoods, staff recommends that any amendments include measures to reduce the number of billboards on surface streets and from neighborhoods. At a minimum, no additional billboards, including digital billboards, should be allowed on any surface streets.

8 The following table summarizes the direction and options described above. Banking No new boards added to the bank and disallow use of existing banked receipts not No new boards added to the bank and allow use of existing banked receipts or allow to expire staff recommendation Allow additional boards to be added to the bank and allow existing bank to be used not Remove requirements for exchange for static and/or digital. This would be in direct conflict with voters initiative of 2000, not Location Exchange No construction of static or digital and don t allow banked receipts to be used not No construction not Allow static where already allowed with the exchange of banked receipts. Prohibit digital staff recommendation Allow static with the established exchange with no additionally issued banked receipts. Do not allow digital. staff recommendation Allow static where already allowed with the exchange of banked receipts. Only allow digital on Hwy 580/395 between North McCarran and South McCarran and only for the exchange of existing boards from surface streets 2 nd choice staff recommendation Increase exchange rate or only allow digital for the exchange of existing surface street static boards 2 nd choice staff recommendation Allow static where already allowed with the exchange of banked receipts. Allow digital in certain areas with established spacing and exchange ratios Adopted exchange rate Allow digital where static is allowed This would be in direct conflict with Voters initiative of 2000, not Reduce Exchange rate not Financial Implications: Any increase in the number of signs in the banked receipt inventory could develop into an increased financial liability for the City of Reno. Legal Implications: Legal review completed for compliance with City procedures and Nevada

9 Law. If the Council is interested in eliminating or restricting banked receipts, a legal analysis under state and federal law may be required. If the Council is interested in eliminating or restricting digital billboards, a legal analysis may be required as to whether the policy passes scrutiny under recent United States Supreme Court cases. These legal analyses may be supplied upon direction from Council as it considers ordinance adoption. Recommendation: Staff recommends direction to draft an ordinance to close any additional banking options for demolished billboards and to ban digital billboards from being constructed within the City of Reno. The ordinance should allow existing banked receipts to be used to construct off-premises advertising displays in conforming locations. Proposed Motion: I move to approve staff recommendation. Attachments: All City, Point Location (PDF)

10 Attachment: All City, Point Location (7942 : Off Premise Advertising (Billboards)) J.4.a Esri, HERE, DeLorme, MapmyIndia, OpenStreetMap contributors, and the GIS user community All City Billboard Point Location Map Legend! All Billboard, Point Location Community Development Department 1 E 1st Street 2nd Floor Reno, NV Phone: Fax: CDW: J:/Planning/Billboards/maps % Esri, HERE, DeLorme, MapmyIndia, OpenStreetMap contributors, and the GIS user community The information hereon is approximate and is intended for display purposes only. Reproduction is not permitted. For additional information, please contact the City of Reno Community Development Department N Map Produced: November 29, Miles