Signs Of The Times

[Houston Retail]

Signs of the Times

To Attract New Development,

Cities Change Laws to Permit

Flashy Outdoor Advertising

By SARAH MCBRIDE

Staff Reporter of THE WALL STREET JOURNAL

August 25, 2004; Page B1

When developer Steve Ellman proposed to build a residential and commercial complex near a new sports arena outside Phoenix, his plans showed giant Times Square-style ads snaking up towers higher than neighboring buildings and rows of electronic display screens that obscured the entire top floor of one structure. Two mammoth signs spelling out "Westgate" in red neon hovered above the whole complex.

A bit glitzy for Glendale, Ariz.? Far from it. Ellman Cos. got the red-carpet treatment from city officials, who anticipated the tax dollars that would flow in from his 6.5 million square feet of offices, apartments, restaurants and shops. And community advocates focused their efforts on issues like traffic, not the development's appearance. Groundbreaking on the first phase is scheduled for Sept. 29.

Once the scourge of civic-minded urbanites, large-sign advertising is making a comeback -- and increasingly it is in electronic form. Developers are cutting deals with city governments that allow them to plaster their projects with razzle-dazzle advertising in exchange for investing in blighted or undeveloped areas, often close to sports arenas. Such projects helped boost spending on outdoor advertising to $5.5 billion last year, up 5.2% over 2002.

"We're going to see more and more cities identify areas ... that they want to promote as areas of entertainment," says Paul Meyer, president and chief executive officer of Clear Channel Communications Inc.'s outdoor-advertising unit. "One of the elements of creating that kind of area is spectacular signage."

Many cities look to Times Square for inspiration. In a 1990s revitalization, New York kicked out the peep shows and adult bookstores in favor of chain stores like Toys "R" Us and Starbucks as well as movie theaters and restaurants. The cleaned-up area took off, in part propelled by rules established in the mid-1980s requiring large, bright signs on new buildings in the area.

Artist's rendering of the entertainment, hotel and office development that AEG plans to build around the Staples Center in Los Angeles.

In Los Angeles, AEG, a unit of Anschutz Group, is planning a four-million-square-foot entertainment, hotel, and office development around the Staples Center, complete with a giant wall of advertising. In Dallas, Hillwood Capital is working with architect Richard Orne on at least two shopping and entertainment buildings that will be covered with giant electronic display screens.

Developers and outdoor-advertising companies say they have become more aggressive about integrating ad space into projects at the planning stage, rather than slapping it on in a hodgepodge at the end. And many local governments are actually encouraging them.

It is a far cry from 40 years ago, when the landmark Highway Beautification Act made freeway billboards endangered species. Since then, billboard companies have chipped away at the law, mostly citing their rights to commercial free speech. Many communities that outlawed billboards found their rules toppled in court as the companies stepped up their legal challenges.

But in many cities with advertising-friendly administrations, lawsuits are pass

[Subdude]

Thanks for posting this. I saw it but don't have access to the online edition. In the former forum there was a long discussion about the pros and cons of lighting downtown more vividly. Do you have today's WSJ article about the Latin American art exhibit at MFAH?

[UrbanLandscape]

Thanks for posting this.  I saw it but don't have access to the online edition.  In the former forum there was a long discussion about the pros and cons of lighting downtown more vividly.  Do you have today's WSJ article about the Latin American art exhibit at MFAH?

<{POST_SNAPBACK}>

I saw it at my parent's place.

I wish I had a WSJ online subscription...