In a controversial move decades in the making, San Jose city leaders have unanimously greenlit a proposal to add digital boards at four downtown city-owned properties, angering scores of residents who questioned their rationale and the long-term ramifications.
Columbus-headquartered Orange Barrel Media will lease billboards at the Center for the Performing Arts, McEnery Convention Center and at the Market/San Pedro Street and Second and San Carlos Street parking garages for potentially up to 20 years, providing the city with a guaranteed minimum of just over $21 million total for that period.
Along with the economic benefits, elected officials championed the proposal in hopes that it will add vibrancy to San Jose’s downtown as the city approaches a critical juncture with major sporting events like the Super Bowl, FIFA World Cup and NCAA Men’s Basketball Tournament games coming to Silicon Valley in 2026.
“This proposal is not a blanket endorsement of billboards citywide,” Vice Mayor Pam Foley said. “We are talking about specific billboards strategically placed on certain parts of downtown, on city-owned property that will add to the character of our downtown. Additionally, these billboards are not just standard billboards on sticks, but are designed to be unique, iconic and identifiable.”
The topic has long been a sore subject in San Jose, with the city even banning billboards nearly four decades ago. But the city’s official stance began to thaw as lobbying efforts from billboard companies began to ramp up more than a decade ago.
In 2015, the city officially began to look at potential proposals after elected leaders and Chamber of Commerce officials visited Denver as part of a study mission to see how it used digital billboards to generate additional revenue and increase vibrancy.
Since then, the city has approved other proposals, including two digital billboards a few years ago, despite a survey showing that residents overwhelmingly opposed them.
Orange Barrel Media will place a digital sign at all of the sites, except for the Center of Performing Arts, which will display two. The agreement contains an initial 10-year term with two five-year extension options.
Kevin Ice, director of real estate, said that the city will receive 33% of the gross revenue generated as part of the deal, which also includes a guaranteed minimum of $21 million. Revenue projections shared with the city foresee San Jose receiving closer to $37.5 million over 20 years.
“Downtown San Jose is at a pivotal moment as we work towards revitalizing our core,” San Jose Downtown Association CEO Alex Stettinski said. “We must embrace opportunities that enhance the pedestrian experience, attract visitors and generate revenue for the city at the same time.”
The contract stipulates that the city will receive 15% of advertising time for free in addition to all unsold allotments, which could add an additional 10-35% of the time. The agreement also prohibits illumination between midnight and 6 a.m., and Orange Barrel Media would be required to pay for all utilities.
The advertisements also are subject to content restrictions, including no profanity, violence, firearms or material adverse to the city’s commercial interests.
City leaders have also stipulated that the billboards use 100% renewable energy provided by San Jose Clean Energy.
Blage Zelalich, deputy director of economic development, said Orange Barrel Media intends to submit construction documents for the first signs at the Center for Performing Arts in the spring with the goal of having them operational between September and November of this year.
However, a large portion of residents have called the city’s rationale bogus, warning that elected officials have taken a myopic view on the subject that could change the character of San Jose.
Dr. Paul Lynam, an astronomer at the Lick Observatory, said the city’s environmental impact contained flawed analysis and that the light pollution from the billboards would result in “a tidal wave of public health problems.”
Les Levitt, a downtown resident and member of the No Digital Billboards in San Jose steering committee, said that the city’s ban on billboards was built on the premise of environmental stewardship and economic development.
But by giving in to special interests, Levitt warned that allowing billboards would “open up the floodgates.”
“Federal law says the city cannot have an exclusive right to go into the billboard business but prevent the same activity on private property,” he said.
Connelee Shaw, the former executive director of the Japantown Business Association and District 3 resident for 53 years, questioned the identity elected officials are forging for San Jose.
“These billboards bring us closer to Las Vegas, Times Square, and in more recent times, as you saw, Denver and Columbus,” Shaw said. “Bigger and brighter is not always better.”