School District loses revenue

Newport, KY
19 July

While other companies' electronic billboards are blazing away, Norton Outdoor Advertising has been working to build a regular, or "static" one on Newport school district property.
The Kentucky Transportation Cabinet said it still violated the 50-foot set-back requirement.
"It's run into a bunch of bureaucratic red tape," said Michael Brandt, Newport superintendent.
He said the sign would have generated $660,000 over 15 years to the school district. But now, the process to get a sign, any sign, has started over.
The Kentucky Transportation Cabinet ruled that Norton could not build a LED billboard on the property because it violates state law. Norton and the school districts went back to the drawing board and decided on building a static billboard.
Norton is appealing the cabinet decision on the set-back issue.
"If that doesn't work, then we'll shop for other options," Brandt said.
Mike Norton, vice president of the Columbia Township-based company, said the decision is a burden on the school, the business and the region as a whole. But school would be hurt most.
"Our lease agreement provided for a great deal," Norton said. "They could pay a lot of bills."
Under the original electronic billboard agreement, the schools district would have received $44,000 per year for 15 years, plus 500 free advertisements on the board every day. The value of the free ads would bring the "value" of the deal for Newport schools to about $900,000.
But only $660,000 of it would be actual money, because the district wouldn't have spent that money on the ads had they not been free.
Brandt said missing out on those postings is a painful blow to a school district that could use a medium to show off its good side.
"To be able to show the better side of things, it would have been invaluable," he said.
Under the new agreement, for the one-sided static sign Norton is appealing, the money drops to $16,000 per year.
And no advertisements.
"It's very frustrating," Brandt said. "We're being penalized for trying to do things correctly."
There are two electronic billboards near the proposed site, both owned by Norton competitor Lamar Outdoor Advertising.
"Nobody seems to be able to make the exception, even though the exception is in plain view," Brandt said.
All the school district can do now is wait for Norton to exhaust its appeals, and after that, explore less favorable options. If the appeal fails, Brandt said they may look at placing the sign on a more intrusive location, that is, if Norton still wants to do the deal.
Norton said the electronic billboards are a step forward, but one that must be taken after going through the appropriate steps. "These signs would do nothing but help."

Source: The Cincinnati Post by Tom Demeropolis