renew america market engagement overview january 2008
Renew America
Table of Contents Part
Title
I
Executive Summary
2
II
US Market Elements
12
III
New York
40
IV
Chicago
64
V
Washington DC
92
VI
Miami Beach
107
VII
Las Vegas (Paradise)
112
VIII
San Francisco
118
IX
Maps
126
* Appendix found in Digital Files
Page
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Renew America
Executive Summary
PART I
1. Opportunities: a. Uniqueness of product opens doors and spurs interest. b. Strong Business Improvement Districts, BIDs, give Renew the opportunity to motivate at the lowest level and be championed through complicated city structures. c. Department of Homeland Security Directives and Federal Grant Funding, combined with new calls for transit systems to convert to bomb resistant trash bins may create a critical mass. d. Renew’s manufacturing partners create a barrier for competitive entry. e. San Francisco Toilette street furniture agreement, where the city did not participate in revenues, is a benchmark. 2. Risks: a. Competitors are likely to mimic Renew’s design if successful. b. Incumbents may exploit legal system to disrupt and delay Renew’s deployment. c. Local governments may not accept business model without revenue share. 3. Renew: a. US Financial Districts: The dominance of a couple of cities, particularly New York, reduces the need for concentrated financial districts in most cities. According to the Vault.com’s Vault Guide of the Fifty Most Prestigious Banking Employers in the United States, almost 80% of listed banks are headquartered in New York, San Francisco and Chicago. New York is the most direct equivalent of the City of London. b. Outdoor Advertising: Overall, the US outdoor industry segment is a $7 billion business and the second‐fastest growing medium in the ad industry, after Internet advertising. Outdoor ads are growing at twice the rate of the total ad industry. i. Digital Outdoor: In 2007, the Outdoor Advertising Association of America estimated that only tiny fraction of US billboards were digital (500‐plus out of an estimated 450,000 total billboards in the United States). This number is forecasted to grow significantly in the next few years. Some operators of digital signage networks, particularly in the retail industry, regard their networks as comparable to television channels, displaying entertaining and informational content interspersed with advertisements. ii. Trash Bin Advertising: There has been a recent increase and an improvement in trash bin advertising in the US. Many people believe that adding advertisement makes the bin more of a Kiosk and that the feeling that one interacts with the bin changes this opinion. The hugely successful radioed controlled trash can at
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Renew America Disney world, Push the Talking Trash Can, also suggests that in the US, interactivity can change the image of a trash can. c. Products: i. Centerpoint Manufacturing: On April 13, 2007, Centerpoint Manufacturing, Inc. BRWR Blast Resistant Waste Receptacles were awarded Designation and Certification as Qualified Anti‐Terrorism Technology products and placed on the “Approved Products List for Homeland Security”. Centerpoint Manufacturing Inc. was issued the “Designation” and “Certification” for its technology by the U. S. Department of Homeland Security under the Support Anti‐Terrorism by Fostering Effective Technologies Act of 2002. ii. BlastGard International: On July 17, 2006, BlastGard International’s BlastWrap and BlastGard Mitigating Trash Receptacles were awarded Designation and Certification as Qualified Anti‐Terrorism Technology products and placed on the “Approved Products List for Homeland Security”. This Designation and Certification will expire on June 30, 2011. In 2004, BlastGard won a $797,000 contract to deploy 208 explosion‐mitigating trash receptacles for use on the DC Metro platforms. BlastGard's second big order came from Amtrak in early 2006: $959,000 for 236 trash receptacles for railway stations in New York City, Philadelphia, Chicago and elsewhere. In 2007, it lost a $450,000 contract with the City of New Orleans after significant negative public reaction and accusations of corruption. iii. City Media Concepts: City Media Concepts partners with local municipalities and BIDs to replace garbage cans with ReceptaSigns, art receptacle kiosks that support four panels of revenue generating advertising. There are 400 in New York City, mostly in Times Square. National advertisers have about 80 percent of the commercial signage, with local and regional comprising the remaining 20 percent. Average campaigns last one to four months. The company estimates a $ 0.32 Cost Per Mille. The ReceptaSign costs approximately $ 1,200.00. City Media Concepts planned to clean each unit every two hours. The company has sent proposals to the 20 largest cities in the US. The stated long‐term goal is to have full‐motion effect of conventional TV. d. Regulation: i. Outdoor Advertising: The trend in the United States is to create Municipal Codes which ban increases in outdoor advertising. Exclusions are often available for publically contracted Street Furniture, Advertising for public awareness, Advertising for emergency awareness or other public service utilities. ii. Security: The SAFETY Act provides critical incentives for the development and deployment of anti‐terrorism technologies by providing liability protections for sellers of "qualified anti‐terrorism technologies”. The Transit Security Grant Program and other grant programs were implemented by the Administration to help strengthen the nation’s critical infrastructure against risks associated with
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Renew America potential terrorist attacks. Renew and other bomb resistant trash bins qualify for grants under AEL Number: 14EX‐00‐BCAN; Explosive‐resistant trash receptacles 4. Market Overview: a. Position Renew in the US market as an Information Kiosk with bomb resistant recycling facilities (as opposed to more traditional street furniture advertising). b. Renew should begin the application process for Designation and Certification as "qualified anti‐terrorism technologies” through the SAFETY Act and the Department of Homeland Security. Because Rewnew’s technology partners are both Designated and Certified, the application process may be streamlined or unnecessary. c. Renew should incorporate a bag/liner feeding mechanism. In the US, urban trash bins are serviced by public employees who bag (usually between 30 and 40 gallon liners) and refresh the bin. d. While there are no specific Americans with Disabilities Act (ADA) regulations dealing with Trash Bins, the addition of Brail and emphasis on Renew’s other disability accommodation traits will help ally powerful civic ADA representatives. e. Renew will need to cognizant of the role that city art commissions play in the designe and deployment of street furniture. 5. New York: a. Market for Renew: New York’s affluent residents, large business and finance employment base and strong tourism industry make it an ideal outdoor advertising market. More importantly, a premium is set for security and anti‐terrorism devices are welcomed. New Yorker’s are more at ease with sophisticated outdoor media. The three districts correspond to the three most important BIDs in New York: Wall Street, within the Downtown Alliance, Park Avenue, within the Grand Central Partnership, and Times Square, within the Times Square Alliance. i. The Downtown Alliance: The Downtown Alliance services 600 trash receptacles. Within its area there are over 100,000 workers in the finance, insurance and real estate industries. Many of the city's major financial institutions, including the New York Stock Exchange and the American Stock Exchange, are headquartered here in Wall Street. ii. The Grand Central Business Improvement District: The Grand Central Business Improvement District services 282 trash receptacles. Within its area is Park Avenue with clusters of major investment banks, Park Slope, portions of Fifth Avenue, much of Midtown Madison Avenue, and Grand Central Station. Investment bank headquarters include UBS, JP Morgan, Bear Stearns and many other financial institutions. iii. The Times Square Alliance: The Times Square Alliance services 326 trash receptacles. Within its area there are over 100,000 workers in the finance and
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Renew America media industries. Lehman Brothers, Morgan Stanley, Bloomberg, NASDAQ and Reuters are headquartered in Times Square. b. Legal Constraints: The deployment of Receptisign suggests that there is a legal path for the deployment of Renew. The MTA may be forced to convert all trash bins to bomb resistant trash bins due to a 2004 DHS Directive and pressure from their local US congressman. Nevertheless, there are significant legal hurdles. Due to the layered nature of New York’s bureaucracy, Renew will need legal advice to move forward. Additionally, after spending two years in court and $1 billion for their street furniture agreement, Cemusa is likely to challenge increases in street furniture advertising. c. Urban Deployment: The Receptisign deployment created a model from which Renew can deploy. By working through New York’s strong BIDs, Renew can focus its geographical scope while allowing local officials to champion the project through City bureaucracy. New York BIDs perform both trash removal and security for their neighborhood at the local level. They have the most to gain. In order to win approval, the BIDs will have to take the project to the Department of Sanitation. The Department of sanitation is particularly keen on its new recycling pilot. The Department of Sanitation will have to take Renew to the City Art Commission if a long‐term contract is in consideration. Based on common operating experience, it is likely that the BIDs will seek MAG, a percent of revenues and ad space, and label the program a pilot program. i. Cemusa holds a twenty year franchise contract with the City of New York to install, maintain and sell advertising on bus shelters, newsstands, automatic public toilets and ‘other/additional service structures’ throughout the five boroughs. The ‘other service structures’ gives the city the right to obtain additional new public service structures, including trash receptacles, multi‐rack news racks and information/computer kiosks. On December 4th 2007, Brooke McKenna, Executive Director, Coordinated Street Furniture Franchise, Department of Transportation, stated to Renew that the contract would not prohibit the BIDs or the Department of Sanitation from deploying a trash receptacle of their choice. A Freedom of Information request concerning the New York’s agreement with Cemusa has been filed on behalf of Renew. Cemusa will provide New York City with $999 million in cash and $398 million in in‐kind services, including advertising space on street‐furniture elements. This included a $118 Million down payment. Cemusa will provide New York City with 3,300 bus shelters, 330 newsstands, and 20 automatic public toilets (APTs). The city will pay nothing for construction and maintenance of the street furniture. The city will receive 22.5 percent of the advertising panels available at any given time to promote the City and for public service messages. ii. Cemusa has already installed digital screen advertisements on City bus shelters. iii. City Media Concepts is paying the Times Square Alliance a “minimum fee” plus a percentage of the advertising revenue. The minimum fee has been described as “more than tens of thousands of dollars”. The Sanitation Departments participation in revenue sharing has been stated as both limited to the
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Renew America beginning contract and continuing. Ten percent of advertising was made available to the Times Square Alliance. Advertising cannot include tobacco, liqueur or competitors immediately in front of a bin. City Media Concepts also provided the Alliance with a Truck to use for trash removal. iv. In past statements, City Media Concepts indicated that they would deploy digital screens on their receptacles. d. Transit Deployment: The MTA is a loss making institution that has a history of using advertising inventory to shore up losses. PANYNJ has a better financial track record, but like the MTA has earned significant revenue by selling advertising to the US’ top media market. In order to avoid current contractual constraints and high advertising benchmarks, Renew should leverage its bomb resistant qualities. There has been increased pressure by US Representative Anthony Weiner, a New Yorker, for the MTA to respond to the DHS Directive to implement Bomb resistant trash bins. i. In January 2008, The MTA opened up a procurement solicitation for ‘blast containment trash receptacles’ for its Long Island Railway system. A request for this solicitation has been filed on behalf of Renew. ii. the MTA Real Estate Department works closely with the private sector to explore new ways and new locations for advertising iii. A Freedom of Information request concerning the MTA’s agreement with CBS Outdoor has been filed on behalf of Renew. e. Next Steps: i. Win interest in the BIDs, with a particular focus on the Grand Central Partnership and the Downtown Alliance (due to their demographics and history). Do this through focusing on the level of investment and the gains for the neighbourhood – security, emergency and public information distribution. ii. Create a benefit for the Department of Sanitation Bureau of Waste Prevention, Refuse and Recycling, by working with the Bureau on its pilot recycling program. iii. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. US Representative Anthony Weiner could be a champion of Renew throughout US transit deployments. iv. Seek legal advice on Cemusa agreement and contracting with New York City. 6. Chicago: a. Market for Renew: Chicago’s concentrated affluent residents, large business and finance employment base and strong tourism industry make it an ideal outdoor advertising market. The fact that the Loop and Magnificent Mile share a border along Michigan Avenue creates an ideal footprint for Renew. The City’s institutions are aware of the security risk. The City’s focus on increasing sidewalk space for pedestrians will impact Renew negatively. Chicago’s purchase of BigBelly trash bins for $ 3,600 to $ 3,900 per unit suggests that the trash bin is outside of its street furniture advertising revenue model.
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Renew America b. Legal Constraints: There are aspects of the zoning ordinance which would prohibit Renew in some of the ideal locations for its deployment. This is due to the type of advertising Renew would deploy. Due to the layered nature of Chicago’s bureaucracy, Renew will need legal advice to move forward. The Mayor’s close relationship with JCDecaux could also create problems. Chicago’s usage of TIF’s suggests a more complicated and possibly corrupt environment. c. Urban Deployment: By working through Chicago’s alliances, Renew can focus its geographical scope while allowing local officials to champion the project through City bureaucracy. The alliances take an active role in streetscape and have been open to innovative ideas in the past. They may gain through championing a new and pioneering project like Renew. In order to win approval, the alliances will have to take the project to the Department of Planning and Development, the Chicago Department of Transportation, the Department of Streets and Sanitation and the Department of Business Affairs & Licensing. The Department of Zoning would have to be involved as the zoning ordinance may need to change. Based on common operating experience, it is likely that the City will seek MAG, a percent of revenues and ad space. i. A Freedom of Information request concerning the City of Chicago’s agreement with JCDecaux has been filed on behalf of Renew. d. Transit Deployment: The CTA is a loss making institution that has a history of using advertising inventory to shore up losses. The Chicago Airport Systems has a good financial track record, but like the CTA, has earned significant revenue by selling advertising. In order to avoid current contractual constraints and high advertising benchmarks, Renew should leverage its bomb resistant qualities. There has been increased pressure by US Representative Anthony Weiner to respond to the DHS Directive to implement Bomb resistant trash bins. CTA has made no mention of bomb proof trash bins while seeking innovative ideas like SubMedia, Titan and possibly heated bus shelters. e. Next Steps: i. Win interest in the alliances, with a particular focus on the GLA and the GNMAA (due to their demographics and location). Do this through focusing on the level of investment and the gains for the neighbourhood – security, emergency and public information distribution. This includes adding light to City streets and usage of National Threat Advisory, Amber Alerts, Weather Alerts, Local Alerts and Traffic Alerts. ii. Create a benefit for the City of Chicago and stockholding departments, by emphasizing the popular support that Renew would deliver. iii. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. iv. Seek legal advice on working with the The GNMAA Sign Ordinance Review Task Force to understand and adjust the zoning ordinance, and contracting with the City.
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Renew America 7. Washington DC: a. Market for Renew: Washington DC has specific areas where residents and employees are affluent. Tourism is a major portion of the population and the city is pedestrian friendly. Most importantly, a premium is set for security and anti‐terrorism devices are welcomed. b. Legal Constraints: The Downtown BID ‘s Downtown Streetscape Regulations, set by the Department of Transportation, may prohibit Renew unless changed. Due to the layered nature of Washington DC’s bureaucracy, Renew will need legal advice to move forward. Otherwise, the field for Renew is legally open. c. Urban Deployment: Like New York, working the strong BIDs, Renew can focus its geographical scope while allowing local officials to champion the project through City bureaucracy. Washington DC BIDs perform both trash removal and security for their neighborhood at the local level. They have the most to gain. In order to win approval, the BIDs will have to take the project to the Department of Transportation. The Department of Transportation will have to take Renew to the Advocacy Neighbourhood Committees. Passage of the Advocacy Neighbourhood Committees should inure any other historical preservation blocks. Based on common operating experience, it is likely that the BIDs will seek MAG, a percent of revenues and ad space, and label the program a pilot program. The bargaining position of the Washington DC BIDs will be weaker than New York. d. Transit Deployment: The WMATA is a loss making institution that has a history of using advertising inventory to shore up losses. In order to avoid current contractual constraints and high advertising benchmarks, Renew should leverage its bomb resistant qualities. Here, the WMATA has already installed like bins in the Metro Rail system. i. In 2007, CBS negotiated a significant increase to the total inventory. This increase gave CBS Outdoor the right to sell advertising on ‘trash receptacles’ in the Metro Rail system. e. Next Steps: i. Win interest in the BIDs, with a particular focus on the Georgetown BID and the Golden Triangle BID (due to their demographics and history). Do this through focusing on the level of investment and the gains for the neighbourhood – security, emergency and public information distribution. ii. Create a benefit for the Department of Transpiration. iii. WMATA may benefit by placing Renew in the Metro Rail system and moving the current bins to outer areas of the network like bus shelters. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. iv. Seek legal advice on contracting with Washington DC.
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Renew America 8. Miami: f. Market for Renew: Miami Beach is not a large opportunity for RE;NEW, but the areas in South Beach represent a focused opportunity. The area is known for affluent tourism and has a high evening footfall. Emergency information networks are extremely important for Miami Beach due to frequency of tropical storms and the geography. g. Legal Constraints: There are not significant legal constraints to Renew in Miami Beach. There are some layers associated with doing business with Miami Beach, but overall the government is small. h. Urban Deployment: By working through the Department of Sanitation, Renew would allow this mundane department to champion the project through City bureaucracy. The Department is seeking to improve the trash bins and is under pressure to clean‐up Miami Beach by the new Mayor. The Miami Design Preservation League will have limited say, but may suggest a white color. The city may seek a percent of revenues and ad space. Their need to disseminate tropical storm information to an ambivalent tourist population will be a motivating factor. i. Next Steps: i. Win interest in the Sanitation Department. Do this through focusing on the excitement of the project, level of investment and the gains for the neighbourhood – security, emergency and public information distribution. 9. Las Vegas: j. Market for Renew: The ‘Strip’ is an ideal environment for Renew. Modern, pro‐ advertising, densely populated and at risk. A premium is set for security and anti‐ terrorism devices are welcomed. k. Legal Constraints: No major legal constraints exist. The County government may present a challenge. l. Urban Deployment: In order to deploy onto the Strip, Renew will have to work with the County Department of Public Works. The Strip is technically located outside of the City of Las Vegas. m. Transit Deployment: Current transit agreements are exclusive. n. Next Steps: i. Win interest in the County government. Do this through focusing on the level of investment and the gains for the Strip – security, emergency and public information distribution. ii. Create a benefit for the Office of Emergency Management, with a focus on Renew’s emergency broadcast ability. iii. Study the possibility for Las Vegas to utilize Renew to become more ‘Green’. 10. San Francisco: o. Market for Renew: San Francisco’s affluent residents and focused financial district make it an ideal outdoor advertising market. Due to this, outdoor advertising, both illegal and legal, has proliferated throughout the city. The City was an early pioneer in street
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Renew America furniture. Due to these factors, the local population has enacted several codes to restrict new outdoor advertising. p. Legal Constraints: Proposition K makes Renew illegal in San Francisco. The previous proposition left room to maneuver, but this November 2007 proposition, which won a popular vote, will be a significant challenge. The SF MTA may be forced to convert all trash bins to bomb resistant trash bins due to a 2004 DHS Directive and pressure from their local US congressman. Other street furniture agreements are not exclusive. q. Urban Deployment: San Francisco’s history with street furniture presents a welcoming environment for Renew. Its other deals are non‐exclusive. San Francisco set a benchmark that will be important for Renew; giving advertising space to a street furniture company in exchange a public good without MAG or revenue share. r. Transit Deployment: Between 2004 and 2007, SF MTA officials, including the chief executive, have called for bomb resistant trash bins. i. A Freedom of Information request concerning the SFMTA’s agreement with Clear Channel has been filed on behalf of Renew. s. Next Steps: i. Focus on Transit Deployment where SFMTA officials have called for bomb resistant trash bins. ii. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. iii. Focus on Renew as an Information Kiosk and work with city officials outside of the Planning Department. iv. Exploit successes in another market to engage city officials. v. Get a legal rendering of Proposition K. 11. 1Q 2008 Engagements: A. Centerpoint Manufacturing and BlastGuard International in order to cooperate on mass transit deals; B. The Office of SAFETY Act Implementation, The United States Department of Homeland Security, in order to be determined and certified as a sellers of "qualified anti‐terrorism technologies”; C. US House Representative Anthony Weiner (D‐Brooklyn & Queens) in order to familiarize His office with Renew for mass transit; D. NY and SF Art Commissions in order to familiarize the Commissions with Renew and urban appeal. E. The Downtown Alliance, New York, in order to familiarize the BID with Renew and discuss its application; F. The Grand Central Alliance, in order to familiarize the BID with Renew and discuss its application;
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Renew America G. The Times Square Alliance, in order to familiarize the BID with Renew and discuss its application; H. The New York Department of Sanitation’s Bureau of Waste Prevention, Refuse and Recycling in order to familiarize the Department with Renew; I. The New York MTA Real Estate Department in order to familiarize the Department with Renew; J. The New York MTA Long Island Railroad Procurement Office to understand procurement solicitation (IT04855‐GP14) for ‘blast containment trash receptacles’; K. The Chicago Loop Alliance in order to familiarize the Alliance with Renew and discuss its application; L. The Greater North Michigan Avenue Association, Chicago, in order to familiarize the Alliance with Renew and discuss its application; M. The Golden Triangle BID, Washington DC, in order to familiarize the BID with Renew and discuss its application; N. The Georgetown BID, Washington DC, in order to familiarize the BID with Renew and discuss its application; O. The Miami Beach Sanitation Division to maintain established Renew relationship; P. The Miami Beach Office of the , Assistant City Manager; order to familiarize the office with Renew; and Q. The Clark County Department of Public Works, Nevada, in order to familiarize the Department with Renew
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Renew America
US Market Elements
PART II
1. Introduction: This section seeks to define the Market Elements that will impact Renew’s entry into the US market. This is not an exhaustive study of the Outdoor market as it relates to Renew, but rather a piecemeal definition of Market Elements with a particular focus on elements that may be unique to the US market. For example, as a ‘world cities’ project, Renew seeks to enter urban markets where market demographics favour its brand of advertising. In order to do this, this study will present an understanding of the urban environment in the US and how Renew can focus its efforts. This section will cover areas as diverse as the Outdoor Market and Product Design for Disabilities. 2. Urban Segmentation: a. Municipal & City Governments: In the United States, urban areas are generally governed by a municipal government. At times, urban areas developed without planning and are under county direction. Advertising has been offered in non‐ traditional areas to help solve city budget difficulties. American Cities have been selling advertising on city infrastructure for years. This activity has been hotly contested by citizens. It is expected that cities will weigh tact, taste and benefit when opening up space. But urban areas demarked by government often make for poor market focus. It is often tough to decouple rich and poor neighborhoods. Advertising companies which contract for city wide programs often construct inventory in areas with poor to no return. Renew will seek to find other Urban Segmentation elements to help focus its investment in the US. b. US Business Central Districts: In the United States central business districts are often referred as 'downtown' (even if there is no 'uptown'). In most cities the downtown area will be home to the financial district. Historic sections of a central business district may be referred to as 'old‐town' while decaying parts of the center city are commonly referred to as the 'inner city'. The term ‘inner city’ is sometimes not used literally, but rather evocatively, applying a negative connotation and referring paradoxically to peripheral areas blighted during a mass exodus of middle class residents.
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Renew America Table 1 – US Central Business District Employment Concentration Rankings Rank Central Business District (of) Total Employment Employment Concentration* 1
New York
1,733,269
18.52%
2
Washington DC
324,056
13.72%
3
Baltimore
127,682
11.35%
4
Philadelphia
247,945
10.19%
5
Minneapolis
128,395
9.82%
6
Chicago
336,313
8.69%
7
Houston
127,759
7.18%
8
Boston
148,400
6.80%
9
San Francisco
184,254
5.84%
10
Los Angeles
288,142
4.23%
Source: US Census Bureau, 1990 (last available data) * Employment as a portion of overall city employment.
a. US Financial Districts: US Financial Districts, sometimes referred to as Financial Centres, are hard to quantify in the US because they are often intertwined with other business. The dominance of a couple of cities, particularly New York, reduces the need for concentrated financial districts in most cities. Federal Anti‐Trust Laws helped to create more than one financial district in the US, but differing state banking laws allow organization to domicile assets in non operational areas (See J.P. Morgan in Table 2). In the United States, the term Financial District is only usually associated with areas in New York, Boston, San Francisco and Miami. According to the Vault.com’s Vault Guide of the Fifty Most Prestigious Banking Employers in the United States, thirty three of the fifty have either their firm headquarters or North American headquarters (Non‐US Banks) in New York. If expanded to include two more cities widely considered to have financial districts (San Francisco and Chicago), almost 80% of the listed banks are headquartered in these tree cities. New York is the most direct equivalent of the City of London.
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Renew America Table 2– United States’ Largest Banks by Total Assets
Rank Bank
Location
Consolidated Assets (000,000s)
1
Citigroup
New York, NY
$2,220,866
2
Bank of America
Charlotte, NC
$1,535,684
3
J.P. Morgan
Columbus, OH
$1,458,042
4
Wachovia
Charlotte, NC
$719,922
5
Taunus Corp.
New York, NY
$579,062
6
Wells Fargo & Co.
San Francisco, CA
$539,865
7
HSBC North America
Prospect Heights, IL $483,630
8
U.S. Bancorp
Minneapolis, MN
$222,530
9
SunTrust Banks
Atlanta, GA
$180,314
10
ABN AMRO North America Chicago, IL
$160,341
Source: Federal Reserve System
c. Business Improvement Districts: Business Improvement Districts (BIDs) are locally controlled partnerships for improving the environment and economic performance of a defined area. They are created by groups of businesses to oversee and fund environmental improvements and the provision of a limited number of additional or enhanced local services. Other terms closely associated to BIDs are business improvement area (BIA), business revitalization zone (BRZ), or community improvement district (CID). BIDs are grassroots organizations that are driven by community support and require legislative authorization by the local government in which it resides, in order to be established. BIDs typically provide services such as street and sidewalk maintenance, public safety officers, park and open space maintenance, marketing, capital improvements, and various development projects. The services provided by BIDs are a supplement to the services already provided by the municipality. BIDs are funded through special assessments collected from the property owners in the defined boundaries of the district. Like a property tax, the assessment is levied on the property owners who can, if the property lease allows, pass it on to their tenants. In the city of New York, the operating budgets of BIDs range from $53,000 to over $11 million. Typically, an individual property owner will pay an assessment of approximately 6% of their annual real estate tax charge. BIDs are overseen by a board of directors that is
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Renew America elected by the members of the district. In the US, the BIDs in New York, Philadelphia and Washington DC are considered the ‘best practice’ BIDs. BIDs will provide Renew with an opportunity to segment urban areas. BIDs also offer a unique partnership opportunity for Renew where Renew compliments their sidewalk maintenance public safety programs. d. Other Urban Segmentations: Other urban vehicles function like BIDs, but their motivation tends to work towards neighbourhood recovery. Empowerment Zones, Tax Increment Finance Districts and Special Service Area Programs are found in poorer urban areas which may not justify Renew as a product. e. Mass Transit Hubs: i. Airports: An airport is a facility where aircraft depart and return. In the United States, most airports are operated directly by government entities or government‐created airport authorities. Due to the size of the country and industry development, air travel is an important means of transportation in the US. It is widely understood that the airport environment is a unique venue for advertisers. The combination of dwell time, profile of travellers, volume of passengers and innovative airport displays is unmatched by all media. In the US 58 percent of Airline travellers, and 68 percent of frequent flyers, recall noticing a billboard advertisement at an Airport (according to Arbitron). 72 percent of this number takes the time to read airport billboards. In Arbitron’s OAAA commissioned study on outdoor advertising at airports, Arbitron found that advertisers can increase their exposure to upscale Americans and reach challenging American segments through airport adverting. Due to this, airport advertising concessions typically have a capital investment or improvement clause, minimum annual guarantee (MAG) (i.e. $3 Million for Miami and 7.5 Million for Dallas Fort Worth) or a 50 (Cleveland) to 70 (Houston, Seattle and Dallas) percent share of gross revenues to the Airport; the greater of the two. ii. Public Transportation Systems: Public transport, public transit or mass transit comprises all transport systems in which the passengers do not travel in their own vehicles. Most cities in the United States were built around the car, and in many places public transport is now almost non‐existent. However, most large cities have an adequate public transport system. Also, the trend has been to improve and expand public transportation. Based on Albitron’s Commuter Profiles, commuters in the areas covered by this study have seen recent increases of 10 to 20 percent in commuting times. This bodes well for the outdoor advertising industry. Public transport systems generally rely on government subsidy to supplement fare collections. Skewing upscale and engaged in repetitive behavior, this crowd is highly desired by advertisers. In the US, public transportation systems aggressively purse MAGs and revenue share to cover budget shortfalls. iii. Pedestrian Traffic: There is an increase in pedestrian traffic in the US. According to the Arbitron Outdoor Study, commissioned by the OAAA, eight out
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Renew America of 10 Americans report they have walked in downtown areas. Pedestrian traffic represents a significant reach opportunity for advertisers. Those with the highest and lowest incomes walk the most in downtown areas. Outdoor media geared to pedestrian traffic reach a broad array of consumers, from lower incomes to those with highest incomes. The two groups with the heaviest pedestrian traffic are at the opposite ends of the income spectrum. 3. Outdoor Segmentation: a. Out of Home Advertising: Out‐of‐home advertising (also referred to as OOH) is essentially all type of advertising that reaches the consumer while he or she is outside the home. This is in contrast to broadcast, print, or internet advertising, which may be delivered to viewers out‐of‐home (e.g. via tradeshow, newsstand, hotel lobby room), but are usually for home or office viewing. Outdoor products are divided among three primary categories: Billboards, street furniture and transit. The most common product in OOH is the billboard. OOH encompasses outdoor advertising but extends to the indoors as well (such as ads in malls). Figure 1 – Out of Home Media Market.
Source: OAAA. b. Outdoor Advertising: Over the past few years, the outdoor advertising industry has evolved into a rejuvenated media force. While many traditional media segments have struggled to remain competitive in a period of economic strife, the outdoor industry has remained relatively unscathed and solvent due in large part to the strength of local sales
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Renew America as both national and regional brands have shifted a significant portion of advertising dollars to grassroots promotions. Overall, the outdoor industry segment is a $7 billion business and the second‐fastest growing medium in the ad industry, after Internet advertising. In fact, outdoor ads are growing at twice the rate of the total ad industry, said Stephen Freitas, chief marketing officer for the Outdoor Advertising Association of America (OAAA), a Washington DC trade group. In the US, top brands using outdoor are a blue chip list of advertisers: AT&T, American Express, IBM, McDonald's, and Procter & Gamble. Outdoor advertising offers outstanding value for the dollar and a myriad of ways to ratchet up exposure. US consumers are in a hurry and outdoor provides quick and concise information to help individuals make rapid purchase decisions. Outdoor surrounds consumers with ubiquitous presence, offering media choices that suit every target audience, geography and strategic plan. Outdoor is a comprehensive mix of effective media delivery mechanisms that reach people in their cars or on subways, in airports and malls or in any number of growing outdoor media settings Figure 2 – US Outdoor Advertising Market.
Source: OAAA. c. Digital Signage: Digital signage is a form of out‐of‐home advertising in which content and messages displayed on an electronic screen, or digital sign, can be changed without
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Renew America modification to the physical sign, typically with the goal of delivering targeted messages to specific locations at specific times. Digital signage offers superior return on investment compared to traditional printed signs. Digital signs may be scrolling message boards, LCD or plasma display panels, electronic billboards, projection screens, or other emerging display types like living surfaces or Organic LED screens (OLEDs) that can be controlled electronically using a computer or other devices, allowing individuals or groups to remotely change and control their content. The content displayed on digital signage screens can range from simple text and still images to full‐motion video, with or without audio. Some operators of digital signage networks, particularly in the retail industry, regard their networks as comparable to television channels, displaying entertaining and informational content interspersed with advertisements. In 2007, the OAAA estimated that only tiny fraction of billboards were digital (500‐plus out of an estimated 450,000 total billboards in the United States). This number is forecasted to grow significantly in the next few years. According to the OAAA, most advertisements on digital billboards in the US promote local businesses; and most of those are considered "small businesses."
On August 1st 2007, Clear Channel Outdoor in Minneapolis displayed emergency information from the major freeway bridge collapse within 15 minutes. The following day, when officials converged on Minneapolis to inspect the damage, they noticed the billboards. Speaking on national TV on August 2, US Senator Amy Klobuchar (D‐MN) cited the emergency messaging on digital billboards as a positive community response: "When Senator Coleman and I landed, we’re driving in . . . and there were already billboards at 9:00 in the morning ‐‐ actual billboards ‐‐ telling people where to go for alternative routes." d. Trash Bin Advertising: While this form of advertising is not new, there has been a recent increase and an improvement in this form. According to the Atlanta Business Chronicle, experts say “advertising on trash cans is part of a growing trend for marketers to find alternative methods of reaching consumers.” "As traditional media gets more and more cluttered, the more attractive alternative media such as this becomes" said Ken Bernhardt, a marketing professor and chairman of the marketing department at Georgia State University. Advertising on trash cans strategically placed outside businesses gets ads near the places where the products are purchased, an advantage over traditional broadcast and print media, he said. Audrey Siegel, senior vice president of client services for TargetCast TCM in New York, said her clients are anxious to find new places to put their messages and are willing to consider such unconventional media as the sides of trash cans. "Street advertising is bringing the message out to the consumer," Siegel said. "Instead of you having to find it, it finds you." There is criticism of this type of advertising in the US. According to Media Post, John Connolly, TK at Grey Advertising and chairman of the outdoor media committee of the American Association of Advertising Agencies stated: “Nine out of ten advertisers wouldn’t touch it for the obvious reasons…Why would anyone want to have their brand associated with
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Renew America garbage.” Clearly the upkeep of the bin is a function of these opinions. Many people believe that adding advertisement makes the bin more of a Kiosk and that the feeling that one interacts with the bin changes this opinion. The hugely successful radioed controlled trash can at Disney world, Push the Talking Trash Can, also suggests that in the US, interactivity can change the image of a trash can (See Appendix I: Push the Talking Trash Can). Figure 3 – Cover, Outdoor Advertising Magazine, November/December 2004.
Source: Outdoor Advertising Magazine. e. Street Furniture: Street furniture is a collective term for objects and pieces of equipment installed on streets and roads for various purposes, including benches, bollards, post boxes, phone boxes, streetlamps, street lighting, traffic lights, traffic signs, bus stops, grit bins, tram stops, taxi stands, public lavatories, fountains and memorials, and trash bins. The presentation of backlit posters is done in display boxes or street furniture components like mega‐displays or billboards. To install these street furniture components on public ground, city councils have to agree. To get these permissions (Europe, Asia and part of the US), services and fees are offered to the cities by the outdoor advertisers. The presentation of this advertising has to fit in the overall public planning rules of cities and their architecture. These requirements lead to interesting design approaches for poster presentation in different formats. To finance this infrastructure, long term contracts (10 to 15 years) are signed between cities and outdoor advertising companies. Street Furniture in the US has become fiercely competitive and highly political. Clear Channel Outdoor, JCDecaux and Cemusa fight for civic contracts, negotiate for months and often end up in court. 4. Products: a. Bomb Mitigating Trash Bins
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Renew America i. Centerpoint Manufacturing: Centerpoint Manufacturing, Inc. provides security solutions for government, public and corporate venues to safeguard employees, patrons and customers. In 2002, Centerpoint Manufacturing, Inc. began development and patented the Blast Resistant Waste Receptacle. It combined thorough testing, material science and manufacturing to produce the BRWR Blast Resistant Waste Receptacle that contains all fragments and mitigates and diverts multiples of force protection. Centerpoint Manufacturing teamed with BlastGard International, Inc. to produce the Next Generation ‐ MTR Blast Resistant and Blast Mitigating Trash Can. On April 13, 2007, Centerpoint Manufacturing, Inc. BRWR Blast Resistant Waste Receptacles were awarded Designation and Certification as Qualified Anti‐Terrorism Technology (QATT) products and placed on the “Approved Products List for Homeland Security”. Centerpoint Manufacturing Inc. was issued the “Designation” and “Certification” for its technology by the U. S. Department of Homeland Security (DHS) under the Support Anti‐Terrorism by Fostering Effective Technologies Act of 2002 (the SAFETY Act). All Centerpoint Blast Resistant Waste Receptacles are insured by commercial insurance coverage required by DHS. Certification limits liability and litigation risks for sellers and users (See Appendix II – DHS Designation and Certification). For testing, Centerpoint Manufacturing utilized the facilities at the New Mexico Institute of Technology — Energetic Materials Research and Testing Center in Socorro, New Mexico, Redstone Technical Test Center, Huntsville, AL and DEMEX Explosive Services of Mississippi. Charge weight, equivalency, shape, density, locations and ignition points were selected and standardized. Price for BRWR cans begin at $ 850. Figure 4 – BRWR Blast Resistant Waste Receptacles.
Source: Centerpoint Manufacturing. ii. BlastGard International: BlastGard International was created to develop, design, manufacture and market proprietary blast mitigation materials. Patent pending BlastWrap technology has proven to effectively mitigate blasts and
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Renew America suppress flash fires regardless of the material or compound causing the explosion. This unique technology can be used to create new finished products or designed to retrofit existing products. BlastWrap can be deployed to mitigate the effects of an explosion or as a protective layer to absorb energy and possibly protect assets from damage caused by an external explosion. One such utilization of BlastWrap is the prefabricated BlastGard models 91 and 101, which are trash receptacles with BlastWrap integrated into the receptacle. On July 17, 2006, BlastGard International’s BlastWrap and BlastGard Mitigating Trash Receptacles were awarded Designation and Certification as Qualified Anti‐ Terrorism Technology (QATT) products and placed on the “Approved Products List for Homeland Security”. This Designation and Certification will expire on June 30, 2011. In 2004, BlastGard won a $797,000 contract to deploy 208 explosion‐mitigating trash receptacles for use on the DC Metro platforms. BlastGard's second big order came from Amtrak in early 2006: $959,000 for 236 trash receptacles for railway stations in New York City, Philadelphia, Chicago and elsewhere. In 2007, it lost a $450,000 contract with the City of New Orleans after significant negative public reaction and accusations of corruption. Figure 5 ‐ BlastGard Model 101.
Source: BlastGard. iii. American Innovations: American Innovations, Inc. (AI), established in March of 1995, delivers reliable security solutions customer service. Their clients include federal, state, local law enforcement and government agencies, including all branches of the Armed Forces. AI also services the private sector. AI claims to have the only Bomb Resistant Waste Receptacles successfully tested to a ‘reliable testing standard’. The bomb receptacles were tested at the Energetic Materials Research and Testing Center located in Socorro, New Mexico. Live demonstrations were also conducted at the USMC HQ located in Quantico, Virginia. These bomb receptacles can also integrate an Anti‐Ramming Bollard feature without affecting their outward appearance, waste management functionality, or exposing the increased security function. Triple Wall Technology, tested to withstand various capacity explosions (Bottom Center,
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Renew America Sidewall Weld Seam, Sidewall Opposite Weld Seam, and Midpoint) without Horizontal Fragmentation; Initial blast is contained horizontally and remaining blast energy is directed vertically; Designed with no metal parts of container in the blast path to fragment and become airborne during an explosion. The stainless steel top remains attached to the waste receptacle; galvanized edges, walls and drains provide corrosion resistance in most environments; plastic liners are full capacity thirty and forty gallon, not nominal sizes; Dimensions: 29" Diameter & 37.5" Height (39" with leveling legs extended); Weight: Starting at 1400 lbs. AI is available through the GSA Schedule. Figure 6 – AI Bomb Resistant Waste Receptacles.
Source: American Innovations. iv. Concentric Security: Concentric Security was formed to meet the market demand for a single, turnkey source for homeland security, anti‐terrorism and force protection solutions. Concentric Security is a comprehensive physical security integrator serving customers nationwide. The Company’s mission is to secure US facilities. Concentric Security serves a broad client base that includes many federal agencies including the US Departments of Defense, State, Justice, GSA, the Smithsonian Institution and the Intelligence Community. Concentric Security’s Bomb Resistant Trash Cans (BRTC) are designed to withstand multiple location, full capacity explosions without horizontal or metal fragmentation. All BRTC models use unique compression absorption resilient layers which direct internal blasts vertically. The design of the BRTC has no metal parts of the container in the blast path preventing any airborne damaging debris. It is believed that their bin is a private label manufactured by one of the previous listed firms as their business model is to provide a complete force protection solution through partnerships. v. Total Security US: TotalSecurity US was founded by Anti‐Terrorism Specialist Jeffrey K. Beatty in 1992, after extensive service to the United States military and government. From 1981‐1983 Mr. Beatty served as a Delta Force, Assault Troop Commander. Under the leadership of Mr. Beatty, TotalSecurity US
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Renew America associates train thousands of emergency managers, law enforcement personnel, transportation security professionals, and technical administrators, including more than ten thousand in the first months following September 11, 2001. TotalSecurity US has created several distinctive and highly effective Homeland Security products aimed to train and protect people from acts of violence and terrorism. The Bomb Mitigation Container System (BMCS) replaces trash, rubbish, and recycling containers. Bomb Mitigation Containers are "on duty" across the country at airports, transit systems, mailrooms, courts, military installations, and government buildings. TotalSecurity US has an entire line of Bomb Mitigation Containers from 20 to 50 gallon capacity. The BMCS was further field tested under realistic conditions and performed against more than 9 lbs. of TNT. The Bomb Mitigation Container System was tested for quality assurance and performance by Wyle Laboratories, an A2LA Lab in Huntsville, Alabama. When a package or pipe bomb is placed into the BMCS, the blast is directed upward. All Bomb Mitigation Containers are made in America (see Appendix I1 – BMCS). TotalSecurity US also makes custom BMCS inserts to turn your existing containers into Bomb Mitigation Container Systems. Organizations including the FBI Headquarters, the Statue of Liberty, the Boston public transport, Ronald Reagan Washington National Airport, and US Central Command have all used the BMCS for added security and violence prevention. vi. Mistral Security: Mistral Security, part of Mistral Group, is a leader in Defense and Law Enforcement markets. Mistral Group is an Israeli organization. The company pioneers explosive detection, identification, mitigation, and containment. Mistral Security systems are approved by GSA and the Department of Defense Explosive Safety Board (DDESB). The Mistral Group provides global Research and Development services, consultancy and protective containment products in terms of blast mitigation and ballistic protection to both commercial and military clients. Mistral Security core expertise involves explosive containment systems, ballistic hard line protection, explosive & drug detection and perimeter intrusion/detection systems. In addition to Mistral Security bomb‐mitigating trash receptacles and BlastSafe (fully contained explosive systems), Mistral Security manufactures and sells Expray, an explosive detection and identification kit. Expray is the most effective solution for US military on and off the battle field for explosive detection and identification. Headquartered in Bethesda, MD, MSI has an international network in more than 50 countries. Mistral Semi‐Vented BlastGuard containers combine a high strength outer steel shell with a patented inner compressive layer to provide security, protection and safety to the surrounding public. The compressive layer is designed to absorb the major blast energy and resist fragments. The outer shell contains any remaining lateral blast energy and fragmentation. Residual blast energy is vented upwards away from the public, keeping the receptacle un‐penetrated. Mistral BlastGuard containers have been extensively tested by
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Renew America government agencies and are in use at many government and public facilities nationwide, including airports, train stations, subways, courthouses, office buildings, and embassies. Currently in use by: The Pentagon, Metro‐North Railroad, Washington DC Metro, New York Subway, Amtrak, Atlanta Public Transportation, Dulles International Airport, Chicago O'Hare, Memphis, St. Paul and Salt Lake City airports, Phoenix Courthouse, Holocaust Museum, New Jersey Transit, Fairfax County Court, Oklahoma, and many other public places. In addition, BlastGuard containers are placed worldwide, including France, Spain, Israel, England, Turkey. An internal hinged lid with lock provides a secure trash container with easy service and minimum maintenance. Models range from 21 to 40 gallons of trash capacity. Mistral BlastGuard containers sell for approximately $2,000. Figure 7– Mistral Security Semi Vented BlastGuard Container.
Source: Mistral Security. b. Advertising Trash Bins i. Ecolad Corporation: In 1972, Ecolad Corp., a Windsor, ON based company, introduced the concept of waste bin advertising in North America. Ecolad manufactures and distributes a variety of high quality outdoor ashtrays, personal ashtrays, waste containers, recycling containers and service centre products. The Company currently operates 600 bins in Detroit and Windsor, along city streets and at golf courses, shopping centres and tourist attractions. Ecolad charges between $40.00 and $80.00 per month for each ad on each can. Ecolad’s advertisements are in colour and placed on 14” by 22” or 5” by 14” (flap) white aluminium panels.
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Renew America Figure 8 – Ecolad Bin.
Source: Ecolad.
ii. City Media Concepts: City Media Concepts (CMC), headquartered in Long Island, NY, is an outdoor advertising company committed to reshaping the urban landscape with its patented ‘art’ receptacles. CMC President, Donald C. Cranston, is the son of the late Correction Captain’s Association president. Founders include Dominick Fertitta, Scott Blaine Hoffman and Peter Arbor. City Media Concepts partners with local municipalities and BIDs to replace obsolete wire‐frame garbage cans with state of the art receptacle kiosks that support four panels of revenue generating advertising. City Media Concepts enables companies to advertise in the world’s largest markets at low cost. Ads are printed on posters that are displayed on all four sides of trash kiosks in Times Square and other high‐traffic areas. Receptacles are placed at close intervals, with several on each block. City Media Concepts calls the program ReceptaSign. Signage appears on all four sides of the kiosk. An advertiser can take one side or any combination of sides, and the panels are visible to vehicular as well as pedestrian traffic. Creative is provided by the advertiser. City Media Concepts can work with an advertiser to develop creative and is responsible for production. Signage on each panel measures 18” by 30”. Standard out‐of‐home guidelines for creative apply. Maintenance is an important element in the effectiveness of the signage. Warner Brothers recently used the signage as a single‐element campaign. Some campaigns tie into other outdoor media in Times Square. National advertisers have about 80 percent of the commercial signage, with local and regional comprising the remaining 20 percent. Average campaigns last one to four months. Times Square and department of transportation figures are used to determine impression numbers. Fluctuations in pedestrian traffic are also available. Lead time is 24 to 48 hours once creative is approved and produced. Prices Average $500.00 per month, per poster, plus production costs. That works out to a company estimated $ 0.32 Cost Per Mille (CPM). There are 400 in New York City. The ReceptaSign costs approximately
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Renew America $ 1,200.00 and weighs 300 pounds. They have smaller openings to prevent people from illegal dumping and to deter rodents. City Media Concepts planned to clean each unit every two hours. Its works wear bright orange polo shirts and carry glass cleaner and polish. The company is marketing its program to city governments, offering to replace the city's trash cans with cans owned and maintained by the company in exchange for permission to advertise on the cans. City Media Concepts shares a percentage of the ad revenue with each city. The company has sent proposals to the 20 largest cities in the US. The Company has stated that it plans to hard wire and illuminate the receptacles. The goal is to have full‐motion effect of conventional TV. The Company’s three published phone numbers on its bins and web site are non‐working. Figure 9 – ReceptaSign, Times Square, New York City. Source: City Media Concepts. iii. Eyeball Media Inc: Atlanta based Eyeball Media has “redefined outdoor advertising by offering advertisers the opportunity to target and reach their defined customers where they live, shop, work and play on a daily basis.” Eyeball Media is controlled by David Heiman and Richard Mashburn. Eyeball Media began installing sites in 2004. Eyeball Media is forecasting the deployment of 1,500 units throughout Atlanta and a reach of 4.5 million eyeballs. Eyeball Media’s web site is located on MySpace.com. Eyeball Media signs contracts with individual businesses, often located near the business retail location. Eyeball Media shares a percentage of the revenues with the city and is not responsible for trash removal. Eyeball Media is responsible for bin maintenance. An Iowa based firm developed two prototypes for Eyeball Media. The final specification has four sides with advertisements, weighs 75 pounds and contains a 32 gallon domed container. The Company has had problem selling advertisements for between $ 30.00 and $ 100.00 a month. The
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Renew America Company is contemplating expansion into North Carolina, Tennessee, Florida, Texas and California. Figure 10 – Eyeball Media Bin, Atlanta.
Source: Eyeball Media. iv. Trash Talk Media Inc.: Trash Talk Media Inc of White Plains, NY, offers a variety of unique and non‐traditional opportunities and niche mobile mediums for reaching audiences across the U.S. In July 2004, Trash Talk Media signed contracts to put trash cans in the Washington DC Verizon (ex‐MCI) Center (sports arena) and New York’s Shea Stadium (football stadium). Together, this accounted for 400 bins. Trash Talk Media charges between $ 300.00 and $ 400.00 per month for each panel on its can. Trash Talk Media specializes in non‐ traditional outdoor advertising, and builds guerilla marketing campaigns for its clients. It’s web site does not list bin advertising, but speaks about segway advertising, bicytaxi advertising, pedicab advertising, moving boards, dedicated vehicle programs, peer‐to‐peer vehicle programs and wallscapes. c. Other Devices i. Submedia: Submedia turns miles of dark subway walls into revenue for transit systems while entertaining passengers and providing advertisers with a high‐ impact medium. Based on the idea of the circular 19th century children’s toy called a Zoetrope, the system would use movement to turn a light box with static images into a motion picture outside of the train’s window. As viewers move along the display, a movie follows them, matching their speed. Submedia’s network of 37 displays span 15 cities, 9 countries and 3 continents. Submedia’s displays are currently in New York, Chicago, Washington DC, and through a partnership with Sidetrack, in Boston, San Francisco and Toronto. Rate range from $ 35,000 to $ 250,000 based on location and duration. The transit systems will receive anywhere from 20 percent to 60 percent of what the advertisers pay; the rest goes to Submedia. However, the percentage shrinks if there is a high cost associated with putting up the frames that will hold the ads.
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Renew America Figure 11 – Tunnel Ad.
Source: Submedia. i. Side Track Technologies: SideTrack Technologies Inc. is based in Winnipeg, Canada. SideTrack has ads in subway tunnels in Boston, San Francisco, Mexico City, Rio de Janeiro, Brazil and Toronto. Side Track and SubMedia co‐operate on marketing and sales. ii. Monster Media: Monster Media focuses on patented interactive systems. Corporate clients or agencies can advertise directly through Monster Media by tapping into its global network of sports and entertainment venues, convention centers, and transit systems on a local, regional, national or international level. Its products include various projected images, large plasma screens, and turnstile ‘Adsleves’. Additionally, Monster Media does interactive store fronts and has created the largest permanent high‐definition building projection on 42nd street in New York. Figure 12 – Monster Media Projection.
Source: Monster Media. iii. PromoMedia Concepts: New York based Promedia Concepts was founded in 1993 by Marc Friedman. Friedman’s intention was to create a new territory in out‐of‐home advertising by capitalizing on products that already exist. To do this, PromoMedia uses coffee cups, vendor cart umbrellas, pizza boxes, Chinese food cartons and take away bags. Promedia specializes in scalable, customized
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Renew America advertising campaigns that are tailored to its audience. Their major outdoor campaigns are New York’s Pershing Square and Chicago’s Riverside. iv. CNN Airport Network: CNN Airport Network is a satellite television network broadcasting general news, weather, stock market updates and features to airports across North America. The network debuted on January 20, 1992, and is currently shown in 42 airports around the world, on televisions located in gate and boarding areas. It uses footage from the main CNN network and Headline News as programming. However, it inserts more weather and travel segments, such as airport delays, into its programming than the other CNN networks. The CNN Airport Network does have advertisements, but does not accept advertisements from any airline, to ensure that ads for one airline are not shown in another's gate area. CNN Airport Network is run by Turner Private Networks, Inc., a division of Turner Broadcasting System, Inc., a Time Warner company. Concerning this report, the network operates in New York, Washington, Miami and Chicago airports. v. Office Media Network: OMN is the creator of The Wall Street Journal Office Network. The Wall Street Journal Office Network is a state‐of‐the‐art communications service that delivers up‐to‐the‐minute news, building messages and advertising through high‐definition digital flatscreens located in premier office buildings across the US. Developed in association with Dow Jones & Company, The Wall Street Journal Office Network delivers world‐class content utilizing the latest in advanced technology. OMN is led by an experienced management team and is backed by Lake Capital, a Chicago‐based private equity firm with in excess of $ 1.3 Billion in equity commitments. OMN’s operations team tours each building, identifies screen and event placements in lobbies and other public areas and gathers key building information. OMN then recommends screen placements in areas that make sense for the building, tenants and advertisers and suggest displays with finishes that match their surrounding environment. OMN’s team of Property Service Representatives presents a plan for consideration and approval and then works with a partner to secure any necessary approvals from JV partners, owners associations and/or ground lessors. After building plans are finalized, OMN’s team coordinates the installation of the screens. The Wall Street Journal Office Network displays are meticulously serviced and maintained.
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Renew America Figure 13 ‐ The Wall Street Journal Office Network.
Source: OMN. d. Out Door Advertising Companies i. CBS Outdoor: CBS Outdoor is among the world's largest out‐of‐home media companies providing unparalleled media opportunities in the United States, Canada and Mexico and across Western Europe with a strong presence in the United Kingdom, Ireland, France, Italy, the Netherlands and Spain. The company has recently expanded into China where it sells advertising on 5700 buses in Beijing. With traditional outdoor, street furniture and transit advertising properties, CBS Outdoor provides advertisers with coverage across vast geographies utilizing multiple media forms within key markets. CBS Outdoor is a division of the CBS Corporation, the number one platform in the world for advertisers. CBS Corporation has preeminent positions in television, radio, outdoor and on‐line advertising and is an industry leader in the creation, promotion and distribution of entertainment, news and sports with such well known brands as CBS Television, UPN, CBS Radio, Showtime, King World, Paramount Television, Paramount Theme Parks and Simon & Schuster. CBS Outdoor sells and services more out‐of‐home advertising than any other company in North America. With more than 1,600 U.S. employees located in more than 50 offices nationwide, CBS Outdoor is the premier provider of out‐of‐ home media in the United States. During the company's nearly seven decades its sole focus has been providing the very best out‐of‐home media opportunities to marketers across the country with more than 100,000 traditional bulletins, Street Furniture in 17 markets and transit advertising in nearly every major US city. ii. Clear Channel: 1. Clear Channel Outdoor: Clear Channel Outdoor is the world's largest outdoor advertising company with over 973,000 displays in more than 60 countries across 6 continents. In the United States, the company operates over 167,000 advertising displays and has a presence in 49 of the top 50 Designated Market Areas. It also operates airport, rail, taxi and mall advertising businesses worldwide. Its Spectacolor (US) and
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Renew America DEFI (international) divisions are the global market leaders in spectacular sign displays, including in New York's Times Square. In the United States, the company operates over 164,000 advertising displays and has a major presence in 42 U.S. markets. It manages over 60 percent of the spectacular displays in Times Square and approximately 45,000 taxi displays in 25 major U.S. markets. The Company also provides the advertising programs in more than 200 US malls. Clear Channel Outdoor also provides advertising displays in 15 major U.S. airports. 2. Clear Channel/Interspace: Clear Channel/Interspace controls indoor advertising at the El Paso, Tulsa, Palm Beach, New Orleans, Nashville, Cleveland, Kansas City, Buffalo and another 190 other airports. 3. Clear Channel Adshel: Clear Channel acquired UK Street Furniture Company Adshel. Clear Channel Adshel works in partnership with municipalities to provide the highest quality street furniture product solutions that are best suited to each individual city's needs, at no cost to themselves or the local taxpayer. Clear Channel Adshel operates over 3,500 municipal advertising contracts worldwide. 4. Clear Channel Airports: Clear Channel Airports controls indoor advertising at the Dallas Fort Worth, Chicago Midway, Chicago O’Hare, Atlanta, Denver, San Antonio, Phoenix and 10 others. iii. JCDecaux: JCDecaux North America is part of an international media and communications company, JCDecaux Out‐of‐Home Media Group, founded in 1964. JCDecaux is a world leader in out of home media with over 657,000 advertising panels across 45 countries. It is Europe’s largest billboard company and the world’s largest street furniture company. JCDecaux has 3 worldwide advertising divisions: Street Furniture (bus shelters, kiosks, newsstands, automatic public toilets), Transportation (airports, train stations, etc.), and billboards. 1. JCDecaux Airports: JCDecaux Airport provides a service to this audience, enhancing the environment with innovative media technology and special programs. By customizing these flexible media programs, advertisers' objectives can be more effectively met controls indoor advertising at New York JFK, New York LGA, Newark, Houston Intercontinental, Houston Hobby, Los Angeles, Miami, Dallas Love Field and 23 others. iv. Cemusa: Founded in 1984, Cemusa is an international leader in street furniture and recently established its North American headquarters in Manhattan. Collaborating with award‐winning architects, Cemusa has made world‐class cities more livable, more modern and more functional. Across Europe and the Americas, Cemusa has installed and maintained more than 110,000 pieces in 11 countries and more than 120 cities, including Miami, Boston, San Antonio, Rio
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Renew America
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de Janeiro and Lisbon. Cemusa's success is rooted in its local market commitment, exceptional design, superb maintenance, and maximum financial benefit to municipal partners. Cemusa is working hand‐in‐hand with the City of New York to deliver a coordinated street furniture franchise to New Yorkers. Iconic street furniture elements that seamlessly blend into their surroundings will only enhance the varied, vibrant streetscapes of the five boroughs. Committed to creating meaningful, lasting partnerships, Cemusa has begun hiring locally to fill corporate positions. Cemusa will also be contracting with local manufacturers and contractors to fabricate and install the toilets, bus shelters, and newsstands. Cemusa is an affiliate of Fomento de Construcciones y Contratas (FCC), a century‐old Spanish municipal services company with 67,500 employees and annual revenues of $ 9 billion. Van Wagner Communications: Van Wagner Communications is the largest privately held Out of Home communications company in the United States. Van Wagner Communications is organized in two groups: Van Wagner Outdoor and Van Wagner Sports. Van Wagner Outdoor offers prominent signage across diverse formats in major metropolitan areas. It is the market leader in New York City (large format and street furniture), holds leading positions in Los Angeles and Washington, DC, and has a significant (and fast growing) presence in Boston, Chicago and Toronto, Canada. Van Wagner Sports is a leading sports marketing and media sales organization. It offers a range of products and services from TV‐visible sports signage and sponsorships to promotional and media property consulting. It holds relationships with major sports teams and leagues across the nation including MLB, NBA and the NCAA. Titan Worldwide: Titan Worldwide is a full service Out‐of‐Home Advertising company providing sales and marketing of transit, billboard, wallscape, telephone kiosk, and street banner advertising. Titan Outdoor LLC was formed in 2000 to acquire and operate unique out‐of‐home properties throughout the United States. During 2001, Titan Outdoor made its first acquisition, Outdoor Concepts, which operated telephone kiosk, billboard and construction wrap advertising in New York. Since June 2004, Titan Outdoor has been awarded five major‐market transit contracts in the United States. According to the Company, ‘Titan Outdoor has become the concessionaire‐of‐choice for Transit Authorities wishing to increase revenue associated with Transit Advertising properties.’ Alliance Airport Advertising: Alliance Airport Advertising is an airport advertising management program expert. Alliance Airport Advertising was founded in 1985 and is based in Las Vegas. The Company has 17 employees and estimated annual revenues of $ 3.4 million. Alliance Airport Advertising controls indoor advertising at the Burbank, Las Vegas and Salt Lake City Airports. Action Sports Media: Action Sports Media controls indoor advertising at the San Diego Airport.
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Renew America ix. Departure Media: Departure Media controls indoor advertising at the Charlotte, Charleston, Little Rock, Richmond, plus three others. x. Corey Airport Services: Corey Airport Services controls indoor advertising at the Atlantic City, Cincinnati, Columbus (Georgia) Airports xi. Elizabeth Younger Agency: Elizabeth Younger Agency controls indoor advertising at the Reno, Boise and Eugene Airports. xii. ImPact Live Media: Lifestyle marketing firms, Active Public Enterprise Group, Huntington Beach, CA, and aXcess Partners Worldwide, Atlanta, formed a joint venture, ImPact Live Media, to handle sponsorships for the Port Authority's transportation and trade services and facilities. 5. Regulation & Government a. Advertising i. Government: 1. Federal Government: Two standing committees in Congress have primary jurisdiction over the issues affecting outdoor advertising: the 19 member Senate Environment and Public Works Committee and the 75 member House Transportation and Infrastructure Committee. In 1996, the Federal Highway Administration (FHWA) issued a memo that said changeable‐message billboards are acceptable if allowed by state‐ federal agreements (See Appendix III – FHWA 1996 Policy & Appendix IV – FHWA2005 Policy). The Federal Highway Administration is a key regulator because much of the digital signage in the US is directed at vehicle traffic. 2. State Government: State representatives set state statues for outdoor advertising. Most states allow changeable‐message billboards. States determine “dwell time” (typically six or eight seconds) and spacing between billboards (See Appendix V – 2007 State Dwell Times). Based on the proliferation of television quality digital signage in the pedestrian areas covered in this study, this form is allowable. 3. Local Government: City governments, through their planning commission, set codes for outdoor advertising. The trend in the United States is to create Municipal Codes which ban increases in outdoor advertising. Some exceptions occur in areas where advertising has become a cultural phenomenon. Exclusions are often available for publically contracted Street Furniture, Advertising for public awareness, Advertising for emergency awareness or other public service utilities. ii. Industry: 1. The Outdoor Advertising Association of America: The OAAA provides leadership, services, and standards to promote, protect and advance the outdoor advertising industry. The OAAA works with government to create a positive regulatory environment, provides research, sets standards and works to improve demand for outdoor advertising. The
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Renew America OBIE Award is outdoor advertising’s greatest honor. The members of the OAAA have adopted a set of voluntary industry principles. The OAAA endorses this Code and encourages its members to operate in conformance with these principles (See Appendix VI – OAAA Code of Industry Principles). The OAAA works in coordination with the Traffic Audit Bureau for Media Measurement. 2. Traffic Audit Bureau for Media Measurement: Established in 1933, the Traffic Audit Bureau for Media Measurement Inc. (TAB) is a non‐profit organization whose historical mission has been to audit the circulation of out of home media in the United States. Recently TAB’s role has been expanded to lead and/or support other major out of home industry research initiatives. Governed by a tripartite board comprised of advertisers, agencies and media companies, TAB acts as an independent auditor for traffic circulation in accordance to guidelines established by its Board of Directors. These rules govern both how audits are conducted as well as how circulation figures are reported TAB’s primary task is to determine how many people have the opportunity to see a particular out of home sign. This proprietary measure is referred to as Daily Effective Circulation or DEC. Currently TAB provides syndicated audits covering the following types of out of home media: Bulletins, 30 Sheet Posters, Transit Shelters and Eight Sheets. TAB also does custom audits for a limited number of alternative media companies including Truckside/Mobile, Postcard Displays and Ski Area Displays. TAB’s DEC’s provide a common currency that can be used across all markets so that media buyers and sellers can compare and contrast their out of home options with confidence. The current DEC’s have been standardized using such factors as seasonality, illumination, passengers per vehicle and Department of Transportation growth rates to form outdoors' basic circulation, the DEC. 3. Digitalooh.org: Digitalooh.org provides the latest information on digital billboard regulations and safety. 4. Media Digital Signage: Media Digital Signage is a for profit company that provides digital signage industry information in addition to paid digital signage content. b. Anti‐Terrorism i. Department of Homeland Security: The United States Department of Homeland Security (DHS), commonly known in the United States as Homeland Security, is a Cabinet department of the federal government of the United States with the responsibility of protecting the territory of the United States from terrorist attacks and responding to natural disasters. 1. 2004 Security Directive: In May of 2004, DHS issued Security Directives (SD) requiring protective measures to be implemented by passenger rail
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Renew America operators. The measures instruct commuter, transit and inter‐city passenger rail systems to comply with requirements that range from removing or replacing station trash cans to utilizing canine explosives detection teams. At certain locations, operators will be required to remove trash receptacles, except clear plastic or bomb‐resistant trash containers (See Appendix VII – DHS Security Directive). ii. The SAFETY Act: The SAFETY Act is intended to provide critical incentives for the development and deployment of anti‐terrorism technologies by providing liability protections for sTTellers of "qualified anti‐terrorism technologies”. The SAFETY Act provides two levels of liability protections to help promote the creation, deployment and use of anti‐terrorism technologies. 1. Designation: The seller’s liability for products or services that are deemed “Designated Technologies” is limited to the amount of liability insurance that the Department of Homeland Security determines the seller must maintain. Designation can also be obtained for promising anti‐terrorism technologies that are undergoing testing and evaluation. Centerpoint and BlastGard are the only bomb proof trash bin manufacturers with the designation. 2. Certification: In addition to the benefits provided under Designation, Certification allows a seller of an anti‐terrorism technology to assert the Government Contractor Defense for claims arising from acts of terrorism. Technologies that receive Certification will be placed on DHS’s Approved Products List for Homeland Security. Centerpoint and BlastGard are the only bomb proof trash bin manufacturers with the certification. 3. Renew Application: In determining whether a particular technology is eligible for a designation, the Department may take into account evidence that the technology is substantially equivalent to a previously designated technology and should be considered as equivalent to other similar designated technologies (predicate technology), consideration may be given if it has the intended use as the predicate technology and it has the same or substantially similar technology characteristics as the predicate technology. Any designation or certification may apply to any other person or entity to which the seller licenses the manufacture and sale of the technology, provided that the requisite notification is given. The Office of SAFETY Act Implementation (OSAI) will review your application and determine if it is complete within 30 days of receipt. You can expect to have a final decision within 120 days of a determination that your application is complete. Renew should begin to investigate the application for determination and Certification. It may not be necessary for Renew to apply.
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Renew America iii. Department of Defense Explosive Safety Board: Department of Defense Explosive Safety Board (DDESB) approval focuses on the protectiveness of the technology or procedures to be used to process the material to be transferred or released. This approval is neither final nor recognized outside of the Department of Defense. There is no “safe” standard. iv. Federal Funding ‐ Bomb Resistant Trash Bins 1. Transit Security Grant Program: The Transit Security Grant Program (TSGP) is one of five grant programs that constitute the DHS Fiscal Year 2007 Infrastructure Protection Program (IPP). The IPP is one tool among a comprehensive set of measures authorized by Congress and implemented by the Administration to help strengthen the nation’s critical infrastructure against risks associated with potential terrorist attacks. The vast bulk of America’s critical infrastructure is owned and/or operated by state, local and private sector partners. The funds provided by the TSGP are primarily intended to support the work of public transit agencies that operate rail and bus networks. Renew and other bomb resistant trash bins qualify for grants under AEL Number: 14EX‐00‐BCAN; Explosive‐resistant trash receptacles (See Appendix VIII: TSGP FAQ). In 2007, the TSGP allocated over $ 141 million for Tier I public transportation systems and over $ 14 million for Tier II public transportation systems. Tier I systems cover the cities of San Francisco, Washington DC (to include Baltimore), Atlanta, Chicago, Boston, New York and Philadelphia. 2. Urban Area Security Initiative Nonprofit Security Grant Program: The Fiscal Year 2007 Urban Areas Security Initiative (UASI) Nonprofit Security Grant Program1 provides funding support for target hardening activities to nonprofit organizations that are at high risk of international terrorist attack. While this funding is provided specifically to high‐risk nonprofit organizations, the program seeks to integrate nonprofit preparedness activities with broader state and local preparedness efforts. It is also designed to promote coordination and collaboration in emergency preparedness activities among public and private community representatives, State and local government agencies, and Citizen Corps Councils. Renew and other bomb resistant trash bins qualify for grants under AEL Number: 14EX‐00‐BCAN; Explosive‐resistant trash receptacles. (See Appendix IX: UASI Fact Sheet). 3. Buffer Zone Protection Program: Buffer Zone Protection Program (BZPP) provides grant funding to build security and risk‐management capabilities at the State and local level to secure pre‐designated Tier I and Tier II critical infrastructure sites, including chemical facilities, financial institutions, nuclear and electric power plants, dams, stadiums, and other high‐risk/high‐consequence facilities. Renew and other bomb
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Renew America resistant trash bins qualify for grants under AEL Number: 14EX‐00‐ BCAN; Explosive‐resistant trash receptacles. (See Appendix X: BZPP FAQ). 4. Port Security Grant Program (PSGP): The Port Security Grant Program (PSGP) provides grant funding to port areas for the protection of critical port infrastructure from terrorism. PSGP funds are primarily intended to assist ports in enhancing risk management capabilities, enhanced domain awareness, capabilities to prevent, detect, respond to, and recover from attacks involving improvised explosive devices (IEDs) and other non‐conventional weapons, as well as training and exercises. Renew and other bomb resistant trash bins qualify for grants under AEL Number: 14EX‐00‐BCAN; Explosive‐resistant trash receptacles. (See Appendix XI: PSGP FAQ). 5. Intercity Bus Security Grant Program: The Intercity Bus Security Grant Program (IBSGP) provides funding to create a sustainable program for the protection of intercity bus systems and the traveling public from terrorism. The FY07 IBSGP seeks to assist owners and operators of fixed‐ route intercity and charter bus services in obtaining the resources required to support security measures such as enhanced planning, facility security upgrades, and vehicle and driver protection. Renew and other bomb resistant trash bins qualify for grants under AEL Number: 14EX‐00‐BCAN; Explosive‐resistant trash receptacles (See Appendix XII: IBSGP FAQ). 6. The General Services Administration: The General Services Administration (GSA) is an independent agency of the United States government, established in 1949 to help manage and support the basic functioning of federal agencies. The GSA supplies products and communications for U.S. government offices, provides transportation and office space to federal employees, and develops government wide cost‐minimizing policies, among other management tasks. Its stated mission is to "help federal agencies better serve the public by offering, at best value, superior workplaces, expert solutions, acquisition services and management policies.” GSA oversees $66 billion of procurement annually. GSA often assists with procurement work for other government agencies. As part of this effort, it maintains the large GSA Schedule, which other agencies can use to buy goods and services. Think of the GSA schedule as hundreds of pre‐negotiated contracts. Procurement managers from government agencies can view these agreements and make purchases from the GSA schedule, knowing that all legal obligations, have been taken care of by GSA. It can take more than six months to get a product onto the GSA Schedule. It is not necessary to be on the schedule in order to sell to the Federal
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Renew America government. The Schedule is particularly useful for piecemeal sales and as a way to market a product across the entire Federal government. c. Product Design i. Urban Sidewalk Sanitation: Usually urban trash bins are serviced by public employees who bag (usually between 30 and 40 gallon liners) and refresh the bin. Sometimes the bags are labelled by the city or BID. The used bags are either taken with the employee, or left at the side of the bin for vehicular pick‐ up ii. American’s With Disabilities Act: The Americans with Disabilities Act of 1990 is the short title of United States Public Law 101‐336, 104 Stat. 327 (July 26, 1990), codified at 42 U.S.C. § 12101 et seq., signed into law on July 26, 1990 by President George H. W. Bush. The American’s With Disabilities Act is a wide‐ ranging civil rights law that prohibits, under certain circumstances, discrimination based on disability. Most major US civic governments have an American’s With Disabilities Act representative who reviews new planning. While there are no specific current requirements for Renew (outside of blocking pedestrian wheelchair movement), this representative will likely be involved in the contracting process. 1. Overview : Public entities may choose from two design standards for new construction and alterations. They can choose either the Uniform Federal Accessibility Standards (UFAS) or the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities (ADAAG), which is the standard that must be used for public accommodations and commercial facilities under title III of the ADA. Many public entities that are recipients of Federal funds are already subject to UFAS, which is the accessibility standard referenced in most section 504 regulations. 2. Renew Accessibility: There are no specific regulations dealing with Trash Cans. Building directories and other signs providing temporary information (such as current occupant's name) do not have to comply with any ADAAG requirements. As a suggestion, permanent signs must have raised and Brailed letters; must comply with finish and contrast standards; and must be mounted at a certain height and location (See Appendix XIII ‐ ADA Compliant). Automated Teller Machines (ATM’s) provide a potential future standard for ‘Reach Range’. Where ATM's are provided, each must be accessible, except that only one need comply when two or more ATM's are at the same location (ADAAG). Accessible machines must have, among other features, accessible controls and instructions and other information accessible to persons with sight impairments See (Appendix XIII ‐ ADA Compliant). 3. Curb (path of travel obligations) Accessibility: Alterations to primary function areas (where major activities take place) trigger a "path of travel" requirement, that is, a requirement to make the path of travel
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Renew America from the entrance to the altered area ‐‐ and telephones, restrooms, and drinking fountains serving the altered area ‐‐ accessible (See Appendix XIII ‐ ADA Compliant). But, under the Department of Justice title III rule, a public entity is not required to spend more than 20% of the cost of the original alteration on making the path of travel accessible, even if this cost limitation results in less than full accessibility (28 CFR 36.403(f)). 4. ADA Compliant: Many manufactures of Bomb Proof trash bins in the United States indicate that their trash bins are “ADA Compliant”. This is misleading, as there are no ADA compliance issues regarding public space trash bins. The ADA calls this false advertising. iii. United States Access Board: The Access Board is an independent Federal agency devoted to accessibility for people with disabilities. Created in 1973 to ensure access to federally funded facilities, the Board is now a leading source of information on accessible design. The Board develops and maintains design criteria for the built environment, transit vehicles, telecommunications equipment, and for electronic and information technology. It also provides technical assistance and training on these requirements and on accessible design and continues to enforce accessibility standards that cover federally funded facilities. In relation to Trash Bins, the Access Board has regulations concerning positioning. Trash Bins must be located outside of the Pedestrian Access Rout (PAR), have a 30‐inch by 48‐inch clear approach area adjacent to benches and tables connected to the PAR, and have trash receptacle openings that are within reach range requirements. The PAR is 4‐foot‐wide minimum (5‐ foot width recommended) route which is set back from curb to allow for street furnishings and pedestrian comfort and is adjacent to the building face/right‐of‐ way line (no frontage zone).
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NEW YORK
Renew America
New York
PART III
1. Large Single Market Opportunities: To segregate large single market opportunities in New York, this report will use the BIDs. New York City is home to the nation’s largest, most comprehensive network of Business Improvement Districts in the US. The City’s 57 BIDs annually contribute nearly $ 80 million worth of services to more than 70,000 businesses in neighborhoods across the five boroughs. Most BIDs are responsible for servicing trash bins in the public space and work with the NYPD to improve security. Additionally, the public service organizations that control mass transit and the airports will be considered. a. Financial Districts: There are three areas with heavy concentrations of Investment Banks. Wall Street, within the Downtown Alliance, Park Avenue, within the Grand Central Partnership, Times Square, within the Times Square Alliance. For the purposes of this report, the Times Square Alliance is classified as a shopping district due to the concentration of tourism and shopping. i. Downtown Alliance: Founded in 1995, the Alliance for Downtown New York works to enhance the quality of life in Lower Manhattan. The Downtown Alliance provides workers, residents and visitors with a clean, safe and dynamic neighborhood. Making the streets of Lower Manhattan more attractive and convenient for pedestrians is a top priority for the Downtown Alliance. Its $20 million Streetscape plan has given lower Broadway a new look, a makeover that has been recognized by the city's Art Commission for its unique style and elegance. Blocks that were once dingy and dark now feel inviting and contemporary. The Streetscape Program is made possible in part by a grant from the Lower Manhattan Development Corporation, which is funded through Community Development Block Grants from the US Department of Housing and Urban Development. The team included Cooper Robertson and Partners as Architects and Urban Designers, Quennell Rothschild & Partners as Landscape Architects, and Pentagram as graphic designers. This BID is the home of the Financial District of New York City, which comprises the offices and headquarters of many of the city's major financial institutions, including the New York Stock Exchange and the American Stock Exchange. Although the term is sometimes considered to be synonymous with "Wall Street", the latter term is usually taken to imply the financial markets as a whole, whereas the Financial District implies an actual geographical location. As a district, it encompasses roughly the area south of City Hall Park but excluding Battery Park and Battery Park City. The heart of the Financial District is often considered to be the corner of Wall Street and Broad Street, both of which are contained entirely within the district. The neighborhood is considered to be primarily a destination for daytime traders and office workers from around New York City and the surrounding areas. The neighborhood has a growing number of full‐time residents, with estimates made in 2005 showing that there were approximately
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Renew America 30,000 people living in the area, a jump from the 15 to 20 thousand living there before September 11th. It also has a growing number of tourist attractions such as the South Street Seaport, which is located in Civic Center (See Appendix XIV‐ Downtown BID Map). 1. Trash Bins: The Downtown Alliance services all 600 trash receptacles in its district; bagging up tons of garbage and relining the baskets with plastic bags that prevent trash overflow. Additionally, the Alliance removes trash, graffiti and cleans the streetscape. As part of the Streetscape plan, the Alliance installed new trash bins. 2. Advertising Opportunity: Lower Manhattan proudly maintains its traditional role as the financial capital of the world. Many of the leading names in finance, insurance and real estate (FIRE) are headquartered there, enjoying close proximity to the New York Stock Exchange, the New York Mercantile Exchange, the American Stock Exchange, and the Federal Reserve Bank of New York. The Financial services industry is the engine that drives the local economy—not only in Downtown but in all of New York City. More than 309,000 people currently work in Lower Manhattan, including some 100,000 in the public sector and 209,000 in the private sector. Approximately 46% of private‐sector employees work in the FIRE industries. The concentration of high‐income professionals has attracted an influx of luxury retailers and high‐end restaurants including Hermès, Tiffany & Co., BMW, Hickey Freeman, and Bobby Van’s Steakhouse. Approximately 3,000 people moved to Lower Manhattan in 2006, increasing the population to almost 40,000. Families are particularly drawn to the area since it is a safe and clean environment with good schools, parks, playgrounds, and spacious apartments. The Alliance has worked aggressively to rid lower Manhattan of excess and illegal outdoor advertising. 3. Security: Dressed in their distinctive red uniforms, the Downtown Alliance security officers work closely with the NYPD to keep the streets safe. Equipped with guidebooks and maps, they're always ready to offer directions and friendly advice to neighborhood visitors. The Downtown Alliance works hand‐in‐hand with the New York City Police Department to ensure that Lower Manhattan remains one of the safest neighborhoods in New York City. Its public safety officers share a facility with units from the NYPD, located at 104 Washington Street between Rector and Carlisle Streets. The Alliance established the NYPD Downtown Center; a 200 person multi‐purpose facility designed to improve the coordination of public safety efforts for the Downtown community by bringing public and private security operations together under one roof. The Downtown Alliance and NYPD work together on many public safety issues and community outreach initiatives. The
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Renew America facility is wired with state‐of‐the‐art technology to efficiently utilize all available resources and operates 24 hours‐a‐day, 7 days‐a‐week. The area around Wall Street is heavily guarded and fortified. All of the Alliance’s trash bins are webbed, allowing visual inspection of the contents. ii. Grand Central Partnership: Founded in the mid 1980s, the Grand Central Business Improvement District is one of the largest business improvement districts in the United States, comprising 76 million square feet of commercial space in a 70‐block area whose irregular borders reach from 35th Street to 54th Street and from Second Avenue to Fifth Avenue. Figure 14 – Map of the Grand Central Partnership.
Source: GCP.
Midtown Manhattan property owners and businesses created the Grand Central Partnership (GCP) during a period of marked physical and economic deterioration. Once in place, GCP developed a comprehensive plan to specifically revitalize the neighborhood surrounding Grand Central Terminal, which included an ambitious capital improvement program, a privately managed sanitation, maintenance and public safety operation, business assistance initiatives, a broad tourism and visitor services program, and a social services component. GCP's operations are managed by a board of directors and officers elected by the District Management Association, a voluntary organization made up of property owners, commercial and residential tenants in the district, as well as representatives of elected officials. A not‐for‐profit corporation, the Grand Central Partnership develops and administers programs and services in one of nearly 60 business improvement districts in New York City
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Renew America under contract with the New York City Department of Small Business Services (SBS). The Grand Central Partnership is funded principally through special assessments collected from commercial property owners located within its defined geographic area. Additional financial support is provided through corporate sponsorship of specific programs and special events and through in‐ kind services. Assessment proceeds and tax‐exempt bonds have funded capital improvements (See Appendix XV ‐ GCP Map). 1. Trash Bins: GCP's uniformed sanitation team keeps the sidewalks and streets pristine, earning a reputation for making the Grand Central neighborhood among the city's cleanest. GCP crews provide comprehensive street sweeping and sidewalk steam cleaning services seven days a week. They emptied the neighborhood's 282 waste baskets more than 137,000 times in 2005; hauling away 250 tons of garbage in the process. Additionally, GCP's Sanitation unit also removes graffiti and handbills from walls, poles, news racks, phone booths, and sidewalk planters. The cleaners work with the Capital Projects division to clean street signs, paint street furniture, pressure wash the district's distinctive granite street corners, and keep street furniture in top condition. Sanitation is almost 25 percent of the GCP’s budget. This comprehensive approach to sanitation has consistently earned GCP top marks for street and sidewalk cleanliness in the quarterly neighborhood report of the Mayor's Office of Operations. 2. Advertising Opportunity: The GCP covers much of Midtown Manhattan. Midtown Manhattan runs from about 31st Street to 59th Street between Third and Ninth avenues. Excluded from the GCP are areas such as Times Square, Rockefeller Plaza area, Hell's Kitchen, Chelsea, Murray Hill, Kips Bay, Turtle Bay, and Gramercy. The "Plaza District", a term used by Manhattan real estate professionals to denote the most expensive area of midtown from a commercial real estate perspective, lies between 42nd Street to 59th Street; and between Third Avenue to Seventh Avenue. This area, while not entirely covered by the GCP, more accurately defines much of the GCP. More importantly, the GCP covers the areas of Park Avenue with clusters of major investment banks, Park Slope, portions of Fifth Avenue, much of Midtown Madison Avenue, and Grand Central Station. Investment bank headquarters include UBS, JP Morgan, Bear Stearns and many other financial institutions. For this reason, the GCP has explored ways to generate revenues through advertising (such as the PromoMedia agreement). 3. Security: GCP’s team of uniformed public safety officers, in direct communication with the New York City Police Department and MTA Metro‐North Police, provides visible auxiliary security services in the district. From the eThe Times Square Alliancearly morning to late at
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Renew America night, GCP officers patrol the streets of the neighborhood and help to keep them among the city’s safest. The GCP team assists the NYPD with investigations and points visitors in the right direction. The force also staffs a convenient taxi dispatcher operation outside of Grand Central Terminal on 42nd Street and Vanderbilt Avenue. Since the beginning of 2007, GCP public safety officers provided quick response to more than 5,544 incidents, and delivered on innumerable occasions information and assistance to the public. NYPD statistics indicated major crimes are down 67 percent compared with a decade ago. b. Shopping Districts: i. Times Square Alliance: Times Square is a major intersection in Manhattan, New York City at the junction of Broadway and Seventh Avenue and stretching from West 42nd to West 47th Streets. The Times Square area consists of the blocks between Sixth and Eighth Avenues from east to west, and West 40th and West 53rd Streets from south to north, making up the western part of the commercial area of Midtown Manhattan. Like the Red Square in Moscow, Trafalgar Square in London, and Tiananmen Square in Beijing, Times Square has achieved the status of an iconic world landmark and has become a symbol of its home city. Times Square is principally defined by its animated, digital advertisements. The Times Square Alliance was founded in 1992. The Times Square Alliance works to improve and promote Times Square; cultivating the creativity, energy and edge that have made the area an icon of entertainment, culture and urban life for over a century. In addition to providing core neighborhood services with its Public Safety Officers and Sanitation Associates, the Alliance promotes local businesses; encourages economic development and public improvements; co‐ coordinates numerous major events in Times Square (including the annual New Year's Eve and Broadway on Broadway celebrations); manages the Times Square Information Center; and advocates on behalf of its constituents with respect to a host of public policy, planning and quality‐of‐life issues. The Alliance's district covers most of the territory from 40th Street to 53rd Street between 6th and 8th Avenues, as well as Restaurant Row (46th Street between 8th and 9th Avenue. The Alliance is a 501(c)3 not‐for‐profit organization, accepts tax‐ deductible contributions, and is governed by a large, voluntary Board of Directors (See Appendix XVI ‐ Recptisign Times Square Map). 1. Trash Bins: The Times Square Alliance works to keep Times Square area, safe and secure for residents, employees and visitors alike. Seven days a week, more than 50 uniformed Times Square Alliance Sanitation Associates: sweep the sidewalks and curbsides, empty public litter baskets, remove graffiti, paint light poles, security gates, fire hydrants and newsstands, vacuum, scrub, wash and disinfect sidewalks with the help of the Alliance's high‐tech cleaning machine, Felix and collect and remove garbage bags using the Alliance's own sanitation truck. The
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Renew America sanitation truck was provided by Receptisign. In 2006, its workers collected 1328 tons of trash and serviced 326 trash bins. In 2004, 2005, and 2006, the Alliance received national recognition for its sanitation efforts. Figure 15 ‐ Times Square Alliance Sanitation Associates and Receptisign Truck.
Source: The Times Square Alliance. 2. Advertising Opportunity: For one hundred years, Times Square ‐ the iconic, vivid, audacious, and often garish nexus of outdoor advertising, entertainment and public display ‐ has mesmerized audiences from every corner of the world with public advertising. Times Square legally encourages advertising. The annual Times Square billboard business is estimated to be $ 69 million and CPMs range from $ 2 to $ 5. Thai Airlines spends nearly $ 1 million for their sliver of billboard space; Kodak spends over $ 2 million yearly for their display; and Target spends in upwards of $ 10 million per year for 23,000 square feet of display space. These numbers are justified, as Times Square contributes $ 55 billion in direct and $ 35 billion indirect economic output to New York City. While Times Square represents only 0.1 percent of the City's land area, 5 percent of the City's jobs are located in Times Square. Of the 200,000 jobs located in Times Square, approximately 70 percent of these jobs are in finance and the creative industries. Lehman Brothers, Morgan Stanley, Bloomberg, NASDAQ and Reuters are headquartered in Times Square. This is bolstered by 1.5 million daily pedestrians, many of whom are tourists. In 2002, the median income of Times Square visitors was $ 61,190 and the median income of Times Square hotel guests was $ 78,315. For this reason, the Alliance has explored ways to generate revenues through advertising (such as the Receptisign agreement). 3. Security: The Times Square Alliance's Public Safety Officers (PSOs), unarmed but fully trained, patrol the district on foot seven days a week. Alliance PSOs are linked by radio to the NYPD. The Alliance credits this cooperation for the dramatic reduction in crime in the area. The Alliance has initiated regular patrols by bomb‐sniffing canine units to provide an additional security presence and a highly visible deterrent.
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Renew America PSOs conduct regular news box checks for any suspicious materials. The Alliance has taken several steps to guard against possible vehicle bombs, encouraging proactive security procedures for private security officers around the perimeters of their facilities. The Alliance has mounted posters on area trash bins encouraging people to report unattended packages to the authorities. The Alliance installed a series of light poles to flood the sidewalks of the side streets with pools of light and illuminate landmark buildings. All of these new light poles carry bright and distinctive Alliance banners. In conjunction with the Metropolitan Transit Authority and Boston Properties, Alliance PSOs regulate the flow of pedestrian traffic into and out of bathroom at the 42nd Street Subway Station. This is the only bathroom in the entire MTA system supervised in this fashion. Alliance Public Safety Officers participate in regular surveys to monitor conditions in Times Square, including public lighting and street vendor presence. PSOs also speak regularly with owners and employees of ground‐floor retail businesses to discuss problems, concerns and other important information. Figure 16 – PSO Canine Unit inspects a Receptisign.
Source: The Times Square Alliance. ii. Fifth Avenue BID: Sixteen years ago, a group of Fifth Avenue property owners and retailers contributed funds for a cleanup crew consisting of just two part‐ time employees. The purpose of that nascent Clean Team was to show that there could be an improvement in the appearance of the neighborhood and thereby encourage others to support the creation of a BID. Today, the Fifth Avenue BID’s 44 member staff provides supplemental security and sanitation services; assists tourists and acts as an advocate for Fifth Avenue from 46th Street to 61st Street and 57th Street from Madison Avenue to Avenue of the Americas. 1. Trash Bins: The Fifth Avenue BID maintains a seven day a week Clean Team operation. Its main priority is to keep the district’s trash receptacles neat and presentable. Each day a small crew arrives a few
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Renew America hours before the normal business day begins. These Clean Team members clear the corners of overnight trash buildup, bag any loose trash, and place new liners into the receptacles. Later in the day they are joined by other Clean Team members who keep receptacles from overflowing, sweep up curbside debris and help in the removal of excess trash bags for drop off at a City dump site. 2. Advertising Opportunity: The area covered by the Fifth Avenue BID is part of Midtown Manhattan. While not a financial centre, as a bridge between the GCP and the Times Square Alliance, it is home to many finance companies. There are over 140 retail shops in the area and many fine hotels. Additionally, the area covers expensive residential blocks. 3. Security: The Fifth Avenue BID maintains a strong security presence throughout the district. The BID’s highly visible officers patrol sidewalks seven days a week from morning to evening. The Community Security Officers, who trained at the John Jay College of Criminal Justice, act as a deterrent to criminal activities, provide assistance to tourists, residents and employees. They are often first on the scene of accidents and similar dangerous conditions. iii. Madison Avenue BID: The Madison Avenue Business Improvement District (BID) was formed in 1996 through a partnership of property owners, merchants, residents and elected officials. The goal is to enhance the experience of living, shopping or working in the area. The BID is managed by the 60‐86 Madison Avenue District Management Association, Inc., a not‐for‐profit corporation under contract with the City of New York to supplement services to the community. The BID is supported by revenue generated from assessments to local property owners. Uniformed security and sanitation crews are on duty 365 days a year and serve as ambassadors for the district. The BID's Merchant Advisory Council develops and implements innovative promotional programming for the district’s businesses. The BID's Capital Improvements Committee focuses on the physical environment of Madison Avenue. The BID extends from East 57th to East 86th Street on Madison Avenue and also encompasses the commercial areas of its adjacent side streets. While the BID serves all property owners, commercial tenants and residents within the district, only registered members may vote, elect and serve as members of the BID's Board of Directors. The BID designed, installed and maintained specially produced modular newspaper racks which replaced those put on the sidewalks by individual newspaper publishers. Other recent improvements include installation of decorative Bishop's Crook light poles by the City's Department of Transportation on Madison Avenue between East 60th and East 73rd Streets, and mulching of district tree wells (See Appendix XVII ‐ Madison Avenue BID Map).
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Renew America 1. Trash Bins: The Madison Avenue BID's Gleam Team supplements the services of the NYC Department of Sanitation by assisting property owners and merchants in maintaining an environment free of litter and graffiti. Seven days per week, its professional crew sweeps the District's sidewalks and curbs, removes graffiti and illegal posters from the Avenue's street furniture, lines trash receptacles, empties full trash cans, and places full liners on the curb for pickup by the NYC Department of Sanitation. By request, the Gleam Team will also provide free power washing and, during the summer, water for Madison Avenue's greener. 2. Advertising Opportunity: Madison Avenue, part of the wealthy Upper East Side of Manhattan, is North America’s premier luxury district. Madison Avenue features the flagship boutiques of the finest European and American designers, over one hundred world class art galleries, exquisite restaurants, dozens of spas and salons for exclusive pampering, six internationally renowned hotels, and the Whitney Museum of American Art. Madison Avenue exhibits timeless elegance with a contemporary flavor that is distinctively New York. The district is comprised of approximately 250 buildings, 500 cooperatives and condominium units and over 800 businesses, and includes some of the world's most celebrated boutiques, galleries, restaurants and hotels. Residential Property is perhaps the most expensive in the US. 3. Security: Madison Avenue Security Team partners with the NYPD and its constituent businesses. The BID’s highly trained, professional and state‐licensed security officers patrol from 8:00 AM to 10:00 PM, seven days a week, 365 days a year. Each officer is in constant communication with the BID’s dispatcher, who can quickly reach the NYPD. Each business is provided with decals with the BID’s Security Hotline number. The team helps store managers lock up after a late evenings, alerts business owners of a shoplifting pattern and aids the NYPD in the apprehension of the perpetrators. They also provide directions to visitors from abroad. iv. Other Bids: Other BIDs in New York could be opportunities for Renew. In Manhattan, the Lincoln Square BID, 34th Street Bid, 47th Street BID, Bryant Park BID, Flatiron BID, Columbus/Amsterdam BID, East Mid‐Manhattan BID, Union Square BID, the Fashion Center, NoHo BID, and the Village Alliance could be areas of opportunity based on their prominence in shopping, employment, residents and tourism. c. Transportation Hubs: i. Metropolitan Transportation Authority: The Metropolitan Transportation Authority (MTA) is a public benefit corporation responsible for public transportation in the US state of New York. Chartered by the New York State
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Renew America Legislature in 1965 as the Metropolitan Commuter Transportation Authority (MCTA) it initially was responsible only for regulating and subsidizing commuter railroads, including the Long Island Rail Road and what is now the Metro‐North Railroad. The MCTA changed its name to the Metropolitan Transportation Authority in 1968 when it took over operations of the New York City Transit Authority (NYCTA) and Triborough Bridge and Tunnel Authority (TBTA). The current CEO of the MTA is Elliot "Lee" Sander, appointed under the recommendation of Governor Eliot Spitzer. The MTA has the responsibility for developing and implementing a unified mass transportation policy for The New York metropolitan area, including New York City and the suburban counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester, all of which together are the "Transportation District”. The New York City Subway is a rapid transit system owned by the City of New York and leased to the New York City Transit Authority, an affiliate of the MTA and also known as MTA New York City Transit. It is the most extensive public transportation system in the world, with 468 reported passenger stations, (or 422 if stations connected by transfers are counted as one), 229 miles of routes translating into 656 miles of revenue track, and a total of 842 miles including non‐revenue trackage. The subway is also notable for being among the few rapid transit systems in the world to run 24 hours a day, 365 days a year. 1. Trash Bins: Compactable and recyclable trash is collected at public receptacles throughout the MTA. Quicker trash removal and sweeping at the platform level became an issue after significant flooding occurred on the Subway. The MTA attempts to segregate newspapers and cardboard at the source for recycling. Although they are segregated, plastics and glass are not recycled. Trash removal from public spaces is the responsibility of the building services personnel and custodians. Items are moved from the source to a staging location. Retail licenses inside of the MTA come with significant trash removal fees. Trash on tracks is a significant fire danger. MTA Capital Construction has established sustainable procedures that are used on expansion projects to reduce impacts on natural resources and optimize performance without compromising other project goals. The Fulton Street Transit Center, for example, is designed to meet the Leadership in Energy and Environmental Design (LEED) Silver Rating. Construction practices in Lower Manhattan have become a model of success and will be used on all Capital Construction projects. In January 2008, The MTA opened up a procurement solicitation (IT04855‐GP14) for ‘blast containment trash receptacles’ for its Long Island Railway system. A request for this solicitation has been filed on behalf of Renew. The vendor product code for receptacles is 041026.
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Renew America 2. Advertising Opportunity: In September 2006, average weekday MTA ridership was 5,076,000, the highest figure since such numbers were first recorded in 1970. Total NYC Transit ridership was 2.25 billion in 2006. Occasionally on some platforms are found newspaper stands, selling all manner of items including newspapers and food. The MTA has also been installing retail spaces within paid areas in selected stations, including Times Square and at 42nd St.‐Bryant Park, on the concourse of the B, D, F, and V lines. In 2006, advertising revenue also decreased slightly, falling to $90.5 million from $91.4 million in 2005. Due to this, the MTA Real Estate Department works closely with the private sector to explore new ways and new locations for advertising. An interesting example would be Monster Media’s projection advertisement in the Subway’s Harold Square Station. Figure 17– Monster Media Interactive, Harold Square Subway Stop.
Source: Monster Media. 3. Security: Of the $ 721 million worth of security projects MTA Capital Construction has identified and prioritized, $ 560 million has been committed. The projects include perimeter protection for major facilities such as Grand Central Terminal, electronic protection (including access control and closed‐circuit television monitoring) in critical locations, structural hardening of vulnerable locations such as bridges and tunnels, and consequence management to allow life‐saving measures to be carried out immediately to remove people if an incident occurs. In July 22, 2005, in response to bombings in London, the New York City Transit Police introduced a new policy of randomly searching passengers' bags as they approached turnstiles. The NYPD has come under fire from some groups that claim purely random searches without any form of threat assessment would be ineffectual. “If You See Something, Say Something" is a highly successful campaign, which encourages users of the MTA's transportation network to call an NYPD hotline or tell an MTA employee if they see a suspicious bag or activity.
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Renew America There were 1,944 tips in 2006. All Bridges and Tunnels operations personnel and selected managers throughout the agency also completed NIMS training in 2006. Over 200 Bridges and Tunnels personnel are dedicated to anti‐terrorism efforts that include security patrols, staffing vehicle checkpoints, and sharing counterterrorism information with other agencies. The MTA Police designed, engineered, purchased with federal funds, and received two emergency mobile command vehicles to assist the department in responding to and managing serious events. In 2006 the department’s Canine Explosive Detection Unit, which is deployed throughout the system and dedicated at major terminals to provide a quick response to suspicious events or packages, reached its expansion goals one year ahead of target. To enhance its canine capabilities the MTA Police implemented portable explosion‐detection technology. The Inter‐Agency Counterterrorism Task Force (ICTF) provides emergency management and intelligence oversight for the MTA and its operating agencies. It has increased its intelligence‐gathering and reporting capabilities by incorporating real‐ time access to various intelligence databases (NYPD Finest System, HIDTA (High Intensity Drug Trafficking Area) Intelligence Network, Regional Information Sharing System). The agency participated in interagency disaster drills to ensure readiness and to improve the performance of its facility personnel and coordination with other agencies. In January 2007, US House Representative Anthony Weiner (D‐Brooklyn & Queens) renewed his call for the MTA to install bomb proof trash cans in City subway stations. ii. Port Authority: The Port Authority of New York and New Jersey (PANYNJ) is a bi‐ state port district, established in 1921 through an interstate contract that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the New York–New Jersey Port District. This 1,500 square mile District is defined as a circle with a 25 mile radius centered on the Statue of Liberty in New York Harbor. The Port Authority operates the Port Newark‐Elizabeth Marine Terminal, which handled the third largest amount of shipping of all ports in the United States. The Port Authority also operates Hudson River crossings, including the Holland Tunnel, Lincoln Tunnel, and George Washington Bridge connecting New Jersey with Manhattan, and three crossings that connect New Jersey with Staten Island. The Port Authority Bus Terminal and the PATH rail system are also run by the Port Authority, as are LaGuardia, JFK, and Newark Liberty International Airports. Although the Port Authority does run a good portion of the transportation structures, some bridges, tunnels, and other transportation facilities are operated independently of the Port Authority, including the Staten Island Ferry, which is operated by the New York City Department of Transportation; bridges
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Renew America between Manhattan and the Bronx operated by the NYCDOT; and other bridges, tunnels, operated by the Triborough Bridge and Tunnel Authority which is controlled by the MTA; buses, subways, and commuter rail operated by the New York City Transit Authority which is controlled by the MTA; and buses, commuter rail, and light rail operated by New Jersey Transit. The Port Authority is jointly headed by the governors of New York and New Jersey. Each governor, with the approval of his or her state senate, appoints six members to the Board of Commissioners, who serve overlapping six‐year terms without pay. Financially, the Port Authority has no power to tax and does not receive tax money from any local or state governments. Instead, it operates on the revenues it makes from its rents, tolls, fees, and facilities. An Executive Director is appointed by the Board of Commissioners to deal with day‐to‐day operations and to execute the Port Authority's policies. Anthony Shorris is the current Executive Director of the Port Authority, after being nominated by New York Governor Eliot Spitzer. 1. Trash Bins: PANYNJ has dedicated staff and works with private contractors to remove sanitation. Its cleaning and maintenance crews services common areas. While there is no specific recycling program, the Port Authority has a policy to encourage the use of recycled materials and promotes recycling throughout its facilities. PANYNJ has embarked on a voluntary ‘Green’ program with actions that will go beyond environmental law and regulations. 2. Advertising Opportunity: Millions of people traveling within the New York‐New Jersey region use the Port Authority's transportation network every week; reaching potential customers from one of the largest, most affluent markets in the world. Nearly 100 million passengers used John F. Kennedy International, Newark Liberty International and LaGuardia airports in 2005. Kennedy International serves nearly 41 million travelers a year; LaGuardia approximately 26 million; and Newark Liberty International about 33 million. Overall, the New York/New Jersey region is the busiest in the nation in terms of passenger boarding. The AirTrain, which provides connections to and from John F. Kennedy International and Newark Liberty International airports via rail and subway lines, moves more than 65,000 airport travelers daily. The PATH carries nearly 58 million people each year, 80 percent of whom are business professionals and 28 percent reported incomes over $100,000; plus some 5 million viewer impressions per month. Port Authority Bus Terminal at 42nd Street, the George Washington Bridge Bus Station at 179th Street and the Journal Square Transportation Center in Jersey City reaches both occasional travelers and daily commuters. Together, these facilities serve more than 69 million customers annually, 56 million of whom travel through the Port Authority Bus Terminal. To exploit this
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Renew America opportunity, PANYNJ works with a variety of vendors who specialize in media placement. 3. Security: Every one of the agency’s bridges, tunnels, terminals, airports, and ports faces enormous security challenges, which have driven security costs up by more than 300 percent. The agency has committed $ 3.7 billion in securing its facilities since 2001, and these costs will continue to rise. The agency has its own 1,600‐member Port Authority Police Department, which is responsible for providing safety and deterring criminal activity at Port Authority–owned‐and‐operated facilities. The Port Authority Police are also responsible for fire fighting and crash emergency. The nerve center of the force is the Central Police Desk, which is located at Journal Square. It is staffed around‐the‐ clock and is the hub of the communications network. There, personnel are assigned to needed areas, all radio transmissions are monitored, and computer terminals are integrated into the NY & NJ Intelligence and Crime Information Systems as well as the National Crime Information Center (NCIC) in Washington, D.C. Information received from these sources is supplied to officers in the field when needed. Strengthening the security of Port Authority facilities through technology such as airport Perimeter Intrusion Detection Systems and capital projects like hardening the PATH tunnels and Bus Term. 2. Regulatory environment: a. Recycling: In 1989, the City passed a law which requires residents and businesses to separate recyclable material from other solid waste. The law also requires the city to recycle rather than landfill 25 percent of its solid waste. In Spring 2007, the New York Department of Sanitation’s Bureau of Waste Prevention, Refuse and Recycling conducted a ‘Public Space Recycling Pilot’. The pilot was conducted in coordination with the Department of Parks and Recreation (location of many of the bins) and the Department of Transportation. The Pilot was in accordance with the city’s final Comprehensive Solid Waste Management Plan. The Comprehensive Solid Waste Management Plan creates an initiative to develop a public space recycling pilot (See Appendix XVIII – New York Comprehensive Solid Waste Management Plan).
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Renew America Figure 18 – NYC Pilot Recycling Bins Source: Department of Sanitation b. Advertising: Outdoor signage in New York is regulated by Local Law 14, and was amended by Local Law 31 (see Appendix XXVIII1 ‐ Local Law 31). Some provisions of Local Law 31 have been suspended until the outcome of a current lawsuit. The law was enacted by the city council to reduce the proliferation of illegal signage and better regulate existing and new signage. Fines can reach $25,000.00 per day. A bond must be posted by outdoor advertising companies against future penalties. The City has veto power over what is advertised. c. Street Furniture: Normally the City Art Commission reviews and approves the design of art, architecture and street fixtures on city owned property. In the case of the City Media Concepts deployment, it had no oversight because the installation was done on a pilot basis. For the CEMUSA contract, the Franchise and Concession Review Committee (FCRC) also had approval authority. The FCRC consist of the Mayor, an additional mayoral designee, the Comptroller, the Office of Management and Budget, the Manhattan Borough President and the Corporation Counsel. By requirements of the New York City Charter, the award of a franchise requires a minimum of five votes of the FCRC. 3. Municipal or other Governmental contracting bodies: a. Department of Sanitation: The New York Department or Sanitation is the world's largest, collecting over 12,000 tons of residential and institutional refuse and recyclables a day. The City's businesses, whose waste is collected by private carting companies, generate another 13,000 tons of refuse each day. The Department of Sanitation’s Bureau of Waste Prevention, Refuse and Recycling plans, implements, and evaluates the Department’s recycling, composting and waste prevention programs. The Bureau of Waste Prevention, Refuse and Recycling conducted a ‘Public Space Recycling Pilot’. This Bureau is spearheading recycling efforts in the public space. It’s director, Robert Lange, has reached out to Renew after receiving an email.
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Renew America Figure 19: Organizational Chart, Department of Sanitation.
Source: NY Department of Sanitation b. The Department of Small Business Services (SBS): The SBS makes it easier for businesses in New York City to form, do business, and grow by providing direct assistance to business owners, fostering neighborhood development in commercial districts, and linking employers to a skilled and qualified workforce. SBS oversees and supports New York City's network of 55 BIDS, the most comprehensive system of its kind in the country. c. Department of Transportation: The Department of Transportation has a staff of over 4,000 that oversees one of the most complex urban transportation networks in the world. The staff manages approximately 5,800 miles of streets, sidewalks, and highways and 787 bridge structures, including six tunnels. The mission is to provide for the safe, efficient, and environmentally responsible movement of people and goods in the City of New York and to maintain and enhance the transportation infrastructure crucial to the economic vitality and quality of life of City residents. i. The MTA Real Estate Department: The MTA Real Estate Department works closely with the private sector to explore new ways and new locations for advertising. Examples of this advertising collaboration are "brand cars" that provide a unique opportunity to communicate with the consumer, and
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Renew America illuminated urban panels at street entrances to subway stations, creating a new revenue source while adding to the lighting and passenger security at our entrances. ii. The MTA Safety and Security Committee: The Safety & Security Committee assists the Board Chair and the Board by reviewing, providing guidance, and making recommendations with respect to safety and security on an MTA‐wide basis. 4. Key Persons: a. Ellen Goldstein, Vice President of Planning Policy and Design, Times Square Alliance. b. Ronald Shindel, Vice President of Security and Quality of Life, Times Square Alliance. c. Tom Tompkins, President of the Times Square Alliance: first championed the City Media Concepts deal. Tompkins was unsure of the advertisement opportunity but open to an expansion in outdoor advertising in his area. Tompkins was motivated by shared advertising revenue and “sleek” styling. d. Lark Anton, Deputy Press Secretary in the Mayor’s Office: assigned to the City Media Concepts publicity with the city. e. Joseph (Joe) Timpone, Vice President, operations, Downtown Alliance. f. Mr. Lange, Director, DSNY Bureau of Waste Prevention, Refuse and Recycling. g. Bruce Schaller, Deputy Commissioner for Planning and Sustainability, Department of Transportation. h. Leon Heyward, Deputy Commissioner for Sidewalks and Inspection Management, Department of Transportation. i. Ted Timbers, Media Relations, Department of Transportation: Timbers directs legal questions for the department. j. Brooke McKenna, Executive Director, Coordinated Street Furniture Franchise, Department of Transportation: Emailed understanding of Cemusa contract. k. US Rep. Anthony Weiner (D‐Brooklyn & Queens): Weiner is trying to get the MTA and others to compile with 2004 DHS security directive to bomb proof trash cans for all passenger rail operators. l. Adalberto Torres, GCP Director of Sanitation. m. Robert Lange, Bureau of Waste Prevention, Refuse and Recycling, Department of Sanitation: has reached out to Renew. n. Alfred C. Cerullo, GCP President and CEO. o. Dave Camella, GCP Director of Public Safety. p. Eric Weingartner, SBS, Executive Director of the Mayor's Office of Comprehensive Neighborhood Economic Development (CNED): Weingartner oversees a comprehensive, cross agency approach to economic development and wealth building strategies in neighborhoods that are in need of a targeted and comprehensive engagement. q. Frank Diego, Madison Avenue BID Security Team, Lieutenant. r. Mamadou Sene, Madison Avenue BID Gleam (Sanitation) Team, Supervisor. s. John P. Hunt, Madison Avenue BID, Vice President for Operation. t. George Johansen, Deputy Superintendent, PANYNJ: is in charge of counter terrorism.
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Renew America u. William Wheeler, MTA Director of Special Project Development and Planning. v. Willliam A. Morange, MTA Deputy Executive Director/Director of Security. w. R. Nowicki, MTA Procurement Officer for the Long Island Railway: In charge of procurement solicitation (IT04855‐GP14) for ‘blast containment trash receptacles. x. Roco Krsulic, Director, Special Projects, Real Estate Department, MTA: For additional advertising opportunities. y. Anthony Shorris, Executive Director of the Port Authority. z. Rocco Sabatella: A retired Chief of sanitation for the City of New York, Sabatella was hired by City Media Concepts. Sabatella was instrumental in achieving City Media Concepts concessions with the Times Square Alliance. In 2004, Sabatella estimated that City Media Concepts would have 5,000 bins with advertisements in New York City; a number that has failed. aa. Toulla Constantinou, Chief Executive of Cemusa North America. bb. Randy M. Mastro: a former Deputy Mayor under Rudolph W. Giuliani who represents Clear Channel. cc. Anthony P. Coles: a former Deputy Mayor under Rudolph W. Giuliani who represents Cemusa. 12. Current Contracts: a. Holders: i. CEMUSA: In September 2005, CEMUSA won New York City’s 20‐year contract to sell ad space on bus shelters and newspaper kiosks. The Department of transportation solicited the bid. ii. JCDecaux: In 2005, the Port Authority hired JCDecaux to manage a variety of outdoor advertising with PANYNJ. iii. City Media Concepts: In 2003, City Media Concept and the Times Square Alliance initiated a pilot program to install trash bins with advertisements. iv. SubMedia: In 2002, SubMedia won a limited contract with PANYNJ. v. CBS Outdoor: CBS Outdoor has a limited contract with PANYNJ. CBS Outdoor has a limited contract with the MTA. vi. Clear Channel Outdoor: Clear Channel Outdoor has a limited contract with the MTA. vii. PromoMedia Concepts: In 2006, PromoMedia executed an agreement to conduct an outdoor campaign in GCP’s Pershing Square. . viii. Titan Worldwide: In 2006, Titan Worldwide was awarded a limited contract with the MTA. ix. Van Wagner Transportation Advertising: In 2006, Van Wagner Transportation Advertising was awarded a limited contract with the MTA. x. CNN Airport Network: CNN Airport Network has a limited contract with PANYNJ. xi. ImPact Live Media: In 2005, ImPact won a concession from the PANYNJ to seek facility sponsors.
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Renew America xii. Mistral Security: In 2004, Mistral Security won a contract with the MTA to install explosion‐mitigating trash receptacles. b. Terms: i. Cemusa: Cemusa holds a twenty year franchise contract with the City of New York to install, maintain and sell advertising on bus shelters, newsstands, automatic public toilets and ‘other/additional service structures’ throughout the five boroughs. The ‘other service structures’ gives the city the right to obtain additional new public service structures, including trash receptacles, multi‐rack news racks and information/computer kiosks. The contract is currently being challenged in the New York Supreme Court. Under the terms of the contract, Cemusa will provide New York City with $999 million in cash (JCDecaux offered $680.6 Million) and $398 million in in‐kind services, including advertising space on street‐furniture elements. This included a $118 Million down payment. Cemusa will provide New York City with 3,300 bus shelters, 330 newsstands, and 20 automatic public toilets (APTs). The city will pay nothing for construction and maintenance of the street furniture. The city will receive 22.5 percent of the advertising panels available at any given time to promote the City and for public service messages. The award winning designs are exclusive for New York by Grimshaw. The bus shelters and newsstands will replace existing structures. The APTs will be sited according to an ongoing City‐led process that will incorporate public input. Cemusa has released an RFEI and is currently working with economic development agencies and advocates to identify local contractors and suppliers. Estimates suggest that total revenues could top $2 Billion. Cemusa has already installed digital screen advertisements on City bus shelters. Renew has made a Freedom of Information Legislation (FOIL) request for this contract. ii. JCDecaux: At PANYNJ’s airports, JCDecaux controls Backlit Dioramas, Broadcast Monitors, Bus Shelters, Car Cards, Floor Displays, Station Posters and Wall Wraps. On Path Trains and stations, JCDecaux controls Car Cards, CCTV Pathvision, Overheads, and Platform Posters. At the Port Authority Bus Terminal and the George Washington Bridge Bus Station, JCDecaux controls station domination packages and electronic billboards. JCDecaux works with the agency to identify revenue‐enhancing opportunities through advertising at its facilities. The contract was extended 10 years. iii. City Media Concepts: City Media Concepts is paying the Times Square Alliance a “minimum fee” plus a percentage of the advertising revenue. The minimum fee has been described as “more than tens of thousands of dollars”. The Sanitation Departments participation in revenue sharing has been stated as both limited to the beginning contract and continuing. Ten percent of advertising was made available to the Times Square Alliance. Advertising cannot include tobacco, liqueur or competitors immediately in front of a bin. City Media Concepts also provided the Alliance with a Truck to use for trash removal. In New York,
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iv.
v.
vi. vii.
viii.
contracts with City Media Concepts ban Cigarette and Liquor advertisements. In 2006, the Department of Sanitation extended the pilot program for another year. SubMedia: SubMedia provides tunnel advertising in the Path tunnels. Typically with SubMedia, the transit systems will receive anywhere from 20% to 60% of what the advertisers pay. In New York, The Sub Media location is visible to an estimated 40,000 people a day. Sub Media ads cost around $100,000 per month to run in New York, significantly more than traditional PATH advertising. A conventional subway ad, a 28" by 11" placard placed in every car, costs about $40,000 per month. CBS Outdoor: CBS Outdoor provides domination packages and electronic billboards at the Journal Square Transportation Center. CBS Outdoor has display advertising in MTA subway cars and stations in Manhattan, the Bronx, Queens, Brooklyn, Long Island, and Staten Island, and illuminated and non‐ illuminated display advertising at street‐level MTA subway entrances in Manhattan, the Bronx, Brooklyn, and Queens. This includes MonsterMedia’s Harold Square ad and their contract gives CBS Outdoor rights to sell locations within the city of New York. While CBS lost much of the MTS’s system to Titan and Van Wagner, CBS Outdoor continues to hold the contract for the New York City Subway System, where it is rolling out a network of LED screens. Renew has made a Freedom of Information Legislation (FOIL) request for this contract. Clear Channel Outdoor: Clear Channel Outdoor displays advertising on the back of MTA’s MetroCards. PromoMedia Concepts: PromoMedia has an exclusive outdoor advertising license with GCP for Pershing Square (42nd Street and Park Avenue). The contract calls for unbrellas and ‘additional signage’. Components include 50 unmbrellas, outdoor seating barracades, pedestrian signage, table tents, printed napkins, and two pole banners. The advertiser must be approved by GCP and may include spirits. This area is maintained daily between 11:30AM and 10:30PM. The plaza hosts 1,500 people per day, while 31,000 commuters pass through the intersection per day on weekdays. The initial contract was to run between May and September 2006. The contract has been extended. Titan Worldwide: Titan Worldwide has display advertising in MTA buses (both the interior and exterior) and in terminals in Manhattan, the Bronx, Queens, Brooklyn, Staten Island, and Long Island, and display advertising in MTA rail cars and stations and in Pennsylvania Station on the Long Island Rail Road Level and on billboards along the railway in Manhattan, Queens, Nassau County, and Suffolk County. The ten year contract, worth an estimated $823 million, calls for the company to abide by MTA ground rules, which prohibit images with pornographic content, as well as tobacco advertisements. Financial terms were not disclosed.
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Renew America ix. Van Wagner Transportation Advertising: Van Wagner Transportation Advertising has display advertising on 300 billboards attached to elevated MTA structures along the subway rights‐of‐way in Manhattan, the Bronx, Queens, Brooklyn, and Staten Island. The ten year contract, worth an estimated $58 million, calls for the company to abide by MTA ground rules, which prohibit images with pornographic content, as well as tobacco advertisements. Financial terms were not disclosed. x. CNN Airport Network: The CNN Airport Network operates its network at PANYNJ’s airports. This allows the network to sell advertisement. xi. ImPact Live Media: Through ImPact, The Port Authority offers two‐year sponsorship deals for the Port Authority's transportation and trade services and facilities, including JFK, Newark, LaGuardia and Teterboro airports and three bridges between Staten Island and New Jersey. Billings on the assignment were not disclosed. xii. Mistral Security: Mistral Security installed BlastGurad bins in selected MTA locations, including the tunnel system under Port Authority. c. Non‐Measurable Attributes: i. Cemusa Exclusivity: On December 3rd and 4th, Brooke McKenna, Executive Director, Coordinated Street Furniture Franchise, Department of Transportation, provided Renew with the following opinion of the Cemusa contract “The the Department of Transportation is only pursuing the trash receptacle option included in our Franchise Agreement with Cemusa. However, there are other entities within in the City, such as the Department of Sanitation, that periodically accept bids for trash receptacles. The Franchise agreement with Cemusa is not exclusive, and therefore has no impact on any existing agreement that a BID may have for their trash receptacle programs. The contract is not exclusive and does not preclude other types of procurements in the future, that said, I think it is unlikely DOT would pursue anything related to Trash Receptacles outside the current Franchise Agreement. Trash receptacles are more likely to fall under the Department of Sanitation, the BIDS or EDC (Economic Development Corporation).” ii. Cemusa Legal Issues: The questions over Cemusa’s contracting and exclusivity have pushed the company into two years of legal battles. In the Case against CEMUSA and the City, Clear Channel claims that Mr. Doctoroff, who was spearheading the city’s failed bid for the 2012 Olympic Games, wrongfully “hijacked the evaluation process” and steered the contract to Cemusa in order to obtain free advertising in 10 South American countries to “advance his Olympic quest.” A revealed email suggests that the City solicited further free advertising on CEMUSA properties in Latin America, which CEMUSA valued at $396 Million. The agreement was ruled lawful by Supreme Court Justice William A. Wetzel in December 2006. In March 2007, New York State Supreme Court judge Eileen Rakower gave the go‐ahead for an antitrust lawsuit filed by
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Renew America OTR Media Group against Cemusa. The Manhattan‐based outdoor advertising company argues the 20‐year franchise the city granted Cemusa violated antitrust laws. The lawsuit, which was filed in October 2006, also challenges local city local law 31 that was enacted in 2005 that bans signs within 900 feet view of an arterial highway and within 200 feet view of parks. OTR alleges that the law will put a choke hold on the market for outdoor advertising signs, increase the value of City‐owned signs and raise the price for outdoor advertising in New York. The court has ordered the city to suspend the enforcement of the outdoor advertising law. Cemusa has been allowed to install street furniture across the city since last summer. A trial date hasn’t been set 13. Conclusion: a. Market for Renew: New York’s affluent residents, large business and finance employment base and strong tourism industry make it an ideal outdoor advertising market. More importantly, a premium is set for security and anti‐terrorism devices are welcomed. New Yorker’s are more at ease with sophisticated outdoor media. The three districts correspond to the three most important BIDs in New York: Wall Street, within the Downtown Alliance, Park Avenue, within the Grand Central Partnership, and Times Square, within the Times Square Alliance. i. The Downtown Alliance: The Downtown Alliance services 600 trash receptacles. Within its area there are over 100,000 workers in the finance, insurance and real estate industries. Many of the city's major financial institutions, including the New York Stock Exchange and the American Stock Exchange, are headquartered here in Wall Street. ii. The Grand Central Business Improvement District: The Grand Central Business Improvement District services 282 trash receptacles. Within its area is Park Avenue with clusters of major investment banks, Park Slope, portions of Fifth Avenue, much of Midtown Madison Avenue, and Grand Central Station. Investment bank headquarters include UBS, JP Morgan, Bear Stearns and many other financial institutions. iii. The Times Square Alliance: The Times Square Alliance services 326 trash receptacles. Within its area there are over 100,000 workers in the finance and media industries. Lehman Brothers, Morgan Stanley, Bloomberg, NASDAQ and Reuters are headquartered in Times Square. b. Legal Constraints: The deployment of Receptisign suggests that there is a legal path for the deployment of Renew. The MTA may be forced to convert all trash bins to bomb resistant trash bins due to a 2004 DHS Directive and pressure from their local US congressman. Nevertheless, there are significant legal hurdles. Due to the layered nature of New York’s bureaucracy, Renew will need legal advice to move forward. Additionally, after spending two years in court and $1 billion for their street furniture agreement, Cemusa is likely to challenge increases in street furniture advertising.
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Renew America c. Urban Deployment: The Receptisign deployment created a model from which Renew can deploy. By working through New York’s strong BIDs, Renew can focus its geographical scope while allowing local officials to champion the project through City bureaucracy. New York BIDs perform both trash removal and security for their neighborhood at the local level. They have the most to gain. In order to win approval, the BIDs will have to take the project to the Department of Sanitation. The Department of sanitation is particularly keen on its new recycling pilot. The Department of Sanitation will have to take Renew to the City Art Commission if a long‐term contract is in consideration. Based on common operating experience, it is likely that the BIDs will seek MAG, a percent of revenues and ad space, and label the program a pilot program. i. Cemusa holds a twenty year franchise contract with the City of New York to install, maintain and sell advertising on bus shelters, newsstands, automatic public toilets and ‘other/additional service structures’ throughout the five boroughs. The ‘other service structures’ gives the city the right to obtain additional new public service structures, including trash receptacles, multi‐rack news racks and information/computer kiosks. On December 4th 2007, Brooke McKenna, Executive Director, Coordinated Street Furniture Franchise, Department of Transportation, stated to Renew that the contract would not prohibit the BIDs or the Department of Sanitation from deploying a trash receptacle of their choice. A Freedom of Information request concerning the New York’s agreement with CBS Outdoor has been filed on behalf of Renew. Cemusa will provide New York City with $999 million in cash and $398 million in in‐kind services, including advertising space on street‐furniture elements. This included a $118 Million down payment. Cemusa will provide New York City with 3,300 bus shelters, 330 newsstands, and 20 automatic public toilets (APTs). The city will pay nothing for construction and maintenance of the street furniture. The city will receive 22.5 percent of the advertising panels available at any given time to promote the City and for public service messages. ii. Cemusa has already installed digital screen advertisements on City bus shelters. iii. City Media Concepts is paying the Times Square Alliance a “minimum fee” plus a percentage of the advertising revenue. The minimum fee has been described as “more than tens of thousands of dollars”. The Sanitation Departments participation in revenue sharing has been stated as both limited to the beginning contract and continuing. Ten percent of advertising was made available to the Times Square Alliance. Advertising cannot include tobacco, liqueur or competitors immediately in front of a bin. City Media Concepts also provided the Alliance with a Truck to use for trash removal. iv. In past statements, City Media Concepts indicated that they would deploy digital screens on their receptacles. d. Transit Deployment: The MTA is a loss making institution that has a history of using advertising inventory to shore up losses. PANYNJ has a better financial track record, but like the MTA has earned significant revenue by selling advertising to the US’ top media
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Renew America market. In order to avoid current contractual constraints and high advertising benchmarks, Renew should leverage its bomb resistant qualities. There has been increased pressure by US Representative Anthony Weiner, a New Yorker, for the MTA to respond to the DHS Directive to implement Bomb resistant trash bins. i. In January 2008, The MTA opened up a procurement solicitation for ‘blast containment trash receptacles’ for its Long Island Railway system. A request for this solicitation has been filed on behalf of Renew. ii. the MTA Real Estate Department works closely with the private sector to explore new ways and new locations for advertising iii. A Freedom of Information request concerning the MTA’s agreement with CBS Outdoor has been filed on behalf of Renew e. Next Steps: i. Win interest in the BIDs, with a particular focus on the Grand Central Partnership and the Downtown Alliance (due to their demographics and history). Do this through focusing on the level of investment and the gains for the neighbourhood – security, emergency and public information distribution. ii. Create a benefit for the Department of Sanitation Bureau of Waste Prevention, Refuse and Recycling, by working with the Bureau on its pilot recycling program. iii. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. US Representative Anthony Weiner could be a champion of Renew throughout US transit deployments. iv. Seek legal advice on Cemusa agreement and contracting with New York City.
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CHICAGO
Renew America
Chicago
PART IV
1. Large Single Market Opportunities: To segregate large single market opportunities in Chicago, this report will use the City’s various neighborhood association mechanisms. These mechanisms include Business Improvement Districts (BIDs), Tax Increment Finance Districts (TIF) and Special Service Areas (SSA). The BIDs are not as well developed as in cities like New York. They lack the sanitation and security services of better developed BIDs. The City’s layered bureaucracy and complicated regulatory environment have a greater impact on the geographical understanding. Additionally, the public service organizations that control mass transit and the airports will be considered a. The Financial & Central Business District ‐ The “Loop”: The Loop is what locals call the historical center of downtown Chicago. It is the second‐largest central business district in the United States, after Midtown Manhattan. The Loop can have different meanings to different persons. According to the University of Chicago, the Loop is community area of Chicago number 32. The term came into existence when a circuit formed by the Chicago L, the raised public train system, enclosed this portion of the city (See Appendix 1 – Chicago Loop Map). Trash bins in the Loop are emptied by the Bureau of Street Operations, a special organization set up for the area. Security is provided by the City. The demographics in the Loop offer advertisers significant opportunity. Real Estate is up in value by 45 percent over five years (See Appendix 2 ‐ Central Market Profile, page 3). With a total population of 19,128 and a median income of $ 77,502, its residents are important eyeballs. The population surges by 350,947 during weekdays as commuting workers enter the area. This number doesn’t include the flux of tourist who visits the Loop each day. Within the Loop there exists the largest external pedestrian shopping are in Chicago. Nevertheless, most Chicago shopping occurs in suburban malls. i. The Financial District of Chicago: The Financial District of Chicago is a small area inside of ‘the loop’ and confined by the Chicago Mercantile Exchange, the Chicago Board of Trade, the Chicago Federal Reserve and the Sears Tower. It is not formally referred to as a ‘financial district’. Chicago is home to many financial organizations of nation‐wide significance. The Financial District of Chicago is where many of the area's largest financial institutions and other financial organizations are located. In addition, Chicago is an influential money center with more than 300 US banks, 40 foreign bank branches, and some of the country's largest venture capital firms and accounting offices. The Financial District is not encompassed by the Chicago Loop Alliance, the State Street Special Service Area #1 or the Central Loop TIF 14; but the Chicago Loop Alliance has taken responsibility to provide its services in the area. ii. Chicago Loop Alliance: The Chicago Loop Alliance (CLA) promotes the Loop as a dynamic, mixed‐use district comprised of theater, retail, new residences, the
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Renew America largest college population in the state of Illinois, and some of the world's most recognizable architecture and renowned cultural institutions. The CLA was formed in 2005 through the merger of the Greater State Street Council and the Central Michigan Avenue Association. CLA’s policy and mission is established by the Board of Directors, Executive Committee and Officers. Committees determine financing, planning, public policy, advocacy, marketing, special events, tourism, and membership activities. Additional subcommittees concentrate on education, landscaping, holiday decorations, parades, and CLA’s annual Gala. A critical function of the Chicago Loop Alliance is to have a voice in planning for the region’s future. This includes reviewing and approving new proposals for development and signage in the area. The CLA participates on the First District Police Department’s District Advisory Council. Bordered by Dearborn on the west, Lake Michigan on the east, and Wacker drive on the north, CLA's 40‐block service area extends south to Congress along Wabash, State and Dearborn, and to Roosevelt along Michigan Avenue (See Appendix 3 – CLA Map). Informally, the CLA promotes the entire Loop area. The CLA is the service provider of Special Service Area #1. The funding of certain core services provided by CLA are funded through the SSA and therefore only apply to State Street. These services include landscaping, power washings, seasonal decorations and infrastructure maintenance. These services comprise about 65 percent of the SSA funding. The remaining 35 percent of the SSA funding is directed to recruitment of new business; promotional, marketing and advertising activities; and events that draw media attention and foot traffic to the State Street Corridor. 1. Capital Improvement: The CLA advocates for local infrastructure projects, but does not perform its own capital improvement projects. Such projects include Sidewalk Sealing, the Wabash Improvement Project and the Couch Place/Ned Nederlander Way project. All of these projects were directly funded by the City of Chicago. The Wabash Improvement Project is a 2007 streetscape project estimated at $ 20 million (See Appendix 4 – Wabash Phase I & Appendix 5 – Wabash Phase II). Trash bins are not part of this project. The Couch Place/Ned Nederlander Way project is a 2007 streetscape project estimated at $ 800,000 (See Appendix 6 –Couch Place/Ned Nederlander Way project). Trash bins are not part of this project. These projects are part of a 2000 plan adopted by the city to revitalize the East loop. The plan makes no mention of trash bins (See Appendix 7 – East loop Plan Infrastructure & Appendix 8 – East loop Plan Open Space). 2. Advertising: There are more than 13,000 people living in the Loop Alliance Area. The average household income is almost $120,000. To capitalize on this, the CLA offers sponsorships to private business. The program was started in 2006 and revenues should be used to fund new
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Renew America initiatives that promote the Loop. There are three advertising platforms supported by the CLA: Looptopia event sponsorship, the Merry Mistletoe holiday sponsorship and Street Décor and Design sponsorship. The Street Décor and Design sponsorship uses permanent planters, street banners and other fixed frameworks. In 2006, sponsorship revenue underwrote the CLA Annual Meeting & Luncheon, membership events, leadership breakfasts, Street Beat Fashion show, street banners, landscaping, holiday decorations, “Loop the Loop” MP3 tours, and the Annual Gala. In 2006, sponsorship revenue totaled $ 90,000 and represented five percent of the CLA’s budget. Figure C1 ‐ Street Décor and Design Sponsorship.
Source: CLA. iii. State Street Special Service Area #1: The goal of SSA #1 is to position State Street as a highly desirable world class retail, entertainment and cultural destination that attracts Chicago residents, tourists and visitors as well as new businesses and real estate development (See Appendix 9 – SSA1 Map). Under the guidance of the State Street Commission and administered by CLA, the SSA will achieve this destination‐marketing goal by providing supplemental services (e.g., power‐washing of sidewalks, landscaping of planters and medians, installation of seasonal decorations, infrastructure maintenance) as well as by providing special programming that brings visitors and media attention to State Street. Supplemental services and special programming of the State Street area are the two fundamental aspects for the successful and effective destination marketing of the State Street area. The SSA's Service Provider, CLA, strives to improve the physical and economic quality of life within the District through efficient management of SSA fund expenditures and effective coordination of these with other public and private resources available to the District. iv. The Central Loop TIF 14: The Central Loop TIF is the largest of all the Chicago TIFs. Originally created in 1984 by Mayor Washington to cover 15 blocks in the north Loop, it was expanded in 1997 to cover most everything between
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Renew America Michigan and Dearborn, running from the Chicago River down to the Congress Parkway. Community activists opposed the expansion, noting that it diverted hundreds of millions in property tax dollars from the public school system to a corner of the city that was already affluent. That year the TIF collected about $88 million in property taxes. Mayor Daley prevailed, arguing that the approximately 15 office buildings in the area with occupancy rates below 90 percent qualified the district as “blighted”. Over the last five years the TIF has recieved at least $350 million in property taxes according to the Cook County Clerk’s annual statement. The money has been used to finance over $100 million in public works improvements, including ‘streetscaping’, street lighting, and repairing sidewalks. About $ 6.6 million went to convert the Fisher Building into luxury rental apartments, another $ 2.5 million went to convert the Mentor Building into condos, and about $ 25 million went to convert or rebuild several hotels including the Hotel Allegro, the Hotel Burnham, the Oxford House, and the Saint George. $ 60 million went to rehab or rebuild the Chicago Theatre, the Goodman Theatre, the Oriental Theatre, and the Cadillac Palace Theatre. $ 95 million went to cover cost overruns at Millennium Park. The River South TIF 37 borders the financial district (See Appendix 10 – TIF 37). b. The Pedway: Chicago’s downtown pedestrian way system, the Pedway, lies in entirely inside of the Loop (See Appendix 11 – Pedway Map). This system of underground tunnels and overhead bridges links more than 40 blocks in the Loop, covering roughly five miles. Used by tens of thousands of pedestrians each day, the Pedway connects to public and private buildings, Chicago Transit Authority (CTA) stations and commuter rail facilities. More than 7.4 million people use Chicago’s Pedway each year. According to On Media, The Pedway users are 58 percent women. 74 percent are college graduates, 59 percent are in professional/managerial positions and 47 percent have incomes over $ 65,000. Many segments are richly decorated, with the walls designed to match the architecture of the hotel above it. Some hotels use the segments for advertisement, decorating the walls with photos of some of their other locations. Other advertising includes banners, light boxes, kiosks and a dedicated magazine. Development of the Pedway began in 1951, when the City of Chicago built one‐block tunnels connecting the Red Line and Blue Line subways at Washington Street and Jackson Boulevard. Since then, both public and private investment have expanded the Pedway, and the system now connects more than 50 buildings through five miles of network. The Pedway is a safe, quick and convenient way for pedestrians to travel downtown; especially in the winter and during times of rain or snow. The Pedway also benefits traffic by reducing the conflict between vehicles and pedestrians, resulting in fewer accidents and better traffic flow. It is not a unified network, but it was never meant to be. Rather, various organizations kept on adding segments independently of each other. Some of those segments remained separate, while other segments became linked either directly or indirectly until they became three large networks. Security is variable, as private
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Renew America security adds to police and Chicago Transit Authority presence near important facilities. Much of the network is administered by the Chicago Transit Authority. c. Shopping Districts: i. The Magnificent Mile: The Magnificent Mile is a potion of Michigan Avenue extending from the Chicago River to Oak Street. This includes the Oak Street Corridor (See Appendix 12 ‐ The Magnificent Mile). The area is known for expensive housing, shopping and the nightlife on Rush Street (one block west). There is a high concentration of media firms in the Magnificent Mile. The Magnificent Mile includes 3.1 million sq. feet of retail space, 460 stores, 275 restaurants, 51 hotels, and a host of sightseeing and entertainment attractions. There are more than 22 million visitors annually. The area has over $ 1 billion in retail sales, over 17,000 hotel rooms, 22,500 residents and 14 million square feet of office space. Over 30,000 pedestrians traverse peak blocks each day. In recent years the Magnificent Mile has added trees and flower‐filled medians to reflect the changing seasons. Many of the world's leading retail stores occupy the Magnificent Mile. There are department stores such as Bloomingdale’s, Lord & Taylor and Nordstrom, home furnishing retailers such as Crate & Barrel and Pottery Barn, jewelers such as Tiffany and Van Cleef & Arpels, big name apparel retailers such as Gap, Banana Republic and Ralph Lauren, plus a host of boutiques and specialty shops. The Magnificent Mile also features indoor shopping malls, such as Water Tower Place and 900 North Michigan Shops. State Street is another major shopping destination, with Marshall Field’s and Carson Pirie Scott being the main department stores. In 2007, the American Planning Association selected North Michigan Avenue as one of 10 Great Streets in America for the rich milieu of planning, architecture, commerce, and community engagement that have combined to make these seven blocks the ultra‐dense, ultra‐varied urban wonderland that it is. The demographics in the Near North Side, a larger area that encompasses the Magnificent Mile, offer advertisers significant opportunity. Real Estate is up in value by 48 percent over five years (See Appendix 2 ‐ Central Market Profile, page 1). With a total population of 76,294 and a median income of $ 68,729, its residents are important eyeballs. The population surges by 178,243 during weekdays as commuting workers enter the area. This number doesn’t include the flux of tourist who visits the Magnificent Mile each day. There is no SSA or TIF in this area. 1. Greater North Michigan Avenue Association: GNMAA serves as the principal business development and community advocacy organization for Michigan Avenue and the surrounding area, working with the City to advance the region's historic signature as a world‐class place to visit, work, and live. Its geographical boundaries are Randolph Street to North Avenue, and Lake Michigan to the North Branch Canal. The association currently represents 740 member businesses. The GNMAA
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Renew America is a non‐profit community advocate originally formed in 1912 as the North Central Association. The Association's name changed to The Greater North Michigan Avenue Association in 1942 to reflect the neighborhood's physical expansion of retail merchants, banks, real estate firms, office buildings and service organizations on the near north side. The Association's activities, ranging from development and signage review to Avenue promotion, compliment property owners’ extensive desire to create a unique street environment. Unique in this respect, North Michigan Avenue property owners privately fund all the greenery in both the parkway planters located directly in front of their buildings, as well as in the medians that run the length of the Magnificent Mile, changing them out three times each year for the spring, fall and summer planting seasons. This is an enormous undertaking by private entities that has a substantial positive impact on the city. The GNMAA is organized into divisions and run by committees and task forces. a. GNMAA's Planning & Advocacy Division: GNMAA's Planning & Advocacy Division is charged with important task of protecting and enhancing the Economic, Social and Physical environments in the Greater North Michigan Avenue Area. The GNMAA Planning & Advocacy Division operates under the directives and guidance of its over 150 member volunteers. Over time, these directives and initiatives have been shaped into a variety of committees and task forces, overseeing the variety of physical and social elements the make‐up North Michigan Avenue. GNMAA’s Planning and Advocacy Division is guided by a document entitled Vision 2012: Applauding our Past, Enhancing the Present and Preparing for the Future (See Appendix 13 – Vision 2012). This concept plan, which was prepared in 1997 by members of the Division established several guiding policies that have set a framework for the ongoing development of North Michigan Avenue and the surrounding area. In the Vision 2012, the GNMAA emphasizes its commitment to pedestrian level retail and the upgrade of ‘streetscaping’. The vision states “ensure that street furniture such as street lamps, informational kiosks, trash receptacles, and the like is of an attractive design compatible with the character of the Avenue.” Like the central plan, the greening of the street through planting and potting is encouraged. The vision sets a policy that “signage (is) to be consistent with architecture character” and the vision reinforces the city zoning ordinance.
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Renew America i. The GNMAA Sign & Urban Design Committee: The GNMAA Sign & Urban Design Committee (also known as SUD) reviews building renovations (façade modifications, changes to design) and permanent and temporary signage, including construction canopies, banners, and window displays in the GNMAA signage review area. The boundaries for this area are Oak Street to the north, Randolph Street to the south, Rush Street to the west and St. Clair Street to the east. The Committee works closely with businesses, building owners, sign companies and the City of Chicago to encourage creative and innovative signage and design, promoting the unique character of North Michigan Avenue. This Committee is co‐chaired by Dan Antolak of FASTSIGNS (Founded in 1985, FASTSIGNS has been consistently recognized as the sign industry's leading franchise). ii. The GNMAA Sign Ordinance Review Task Force: The GNMAA Sign Ordinance Review Task Force was developed to revisit the existing Michigan Avenue Corridor Special Sign District, a portion of the existing sign ordinance that regulates signage on Michigan Avenue, from Oak Street on the north to Roosevelt Road on the south. The Task Force is reviewing the special ordinance to ensure that it addresses the needs of all those who use it, retailers, commercial businesses, planners, and city officials while promoting and protecting the special character of the Avenue. This Task Force will also be developing a protocol for dealing with violators of the ordinance. iii. The GNMAA Public Way Committee: The GNMAA Public Way Committee monitors conditions on the public right‐of‐way in the GNMAA area, with specific focus on North Michigan Avenue. This Committee encourages quality improvements to the public way, and monitors outdoor cafes, directional signage, bus shelters, newsboxes, etc. This Committee is also responsible for presenting the Annual GNMAA Beautification Awards, given each year to buildings along the Avenue with exceptional parkway plantings and exterior building conditions.
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Renew America iv. The GNMAA Protocol for Use of the Public Way Task Force: The GNMAA Protocol for Use of the Public Way Task Force was developed to address the need for a free and clear public way in the GNMAA area, specifically on heavily trafficked North Michigan Avenue. This Task Force seeks to take a closer look at how to manage the numerous uses of the public way along North Michigan Avenue, including advertising, panhandling, street performers, illegal businesses and homelessness. Working with a variety of city departments, including the City of Chicago Department of Law, the Department of Business Affairs and Licensing, the Mayor's Office and the Chicago Police Department the Task Force is working to ensure that North Michigan Avenue provides a safe, open and clear public way. v. The GNMAA Security & Emergency Preparedness Committee: The GNMAA Security & Emergency Preparedness Committee works to promote safety and security and to look at long‐term security needs and emergency preparedness planning in the GNMAA area. This Committee is made up of GNMAA retail, hotel and building security professionals, GNMAA member security companies, area institutions, and representatives from the Chicago Police Department, Federal Bureau of Investigation, Office of Emergency Management and Communications and Cook County State's Attorney's Office. b. The GNMAA Marketing Division: The GNMAA Marketing Division is run by a team of over 400 volunteers, ranging from small business owners to vice presidents of large companies, from marketing directors to sales managers. The Marketing Division has an integrated and strategic marketing mix, promoting The Magnificent Mile as one of the great avenues of the world and a dynamic, world‐class destination. In 2006, The Greater North Michigan Avenue Association unveiled "Feel Magnificent," as the first branding campaign for The Magnificent Mile district. Branding The Magnificent Mile as one of the great avenues of the world, the campaign showcases the district's major industries (dining, hotels, retail shopping and tourism) by presenting glamorous, inspirational photography, fashion forward wardrobe styling, and the newest trend in
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Renew America colors. The objective is to present the product, the Magnificent Mile and its surrounding neighborhoods, as an exciting experience based destination for shoppers and travelers, differentiating North Michigan Avenue from other destinations. It also maintains the area’s promotional web site, www.themagnificentmile.com. c. The GNMAA Program Division: The GNMAA Program Division creates a variety of events and programs throughout the year to facilitate relationships and expand business networks between fellow members, area businesses and civic leaders. Four seasonal consumer campaigns deliver unique experiences for those who live, work, shop, and visit The Magnificent Mile from around the world. These campaigns sell sponsorships. ii. Other Shopping Areas: Chicago's Lincoln Square neighborhood consists of the area bordered by Foster Avenue to Montrose Avenue, Damen Avenue to the Chicago River (See Appendix 14 – Lincoln Square Map). In the early 1900s, it experienced major growth that was spurred by the installation of electric streetcars along its main thoroughfares and by the opening of the elevated train line in 1907 (now the CTA Brown Line). Today, Lincoln Square's vibrant combination of shopping, residential, park and industrial districts make it a great place to live, shop and do business. The area is supported by an active BID, the Lincoln Square BID, The Special Service Area #21, and the Western Avenue North TIF. This is a secondary focus area. d. Transportation Hubs: i. Chicago Transit Authority: Chicago Transit Authority is the operator of mass transit within the City of Chicago. It is the second largest transit system in the United States. The CTA offers bus and rapid transit routes throughout the city, as well as to some suburban destinations. The CTA is a municipal corporation that started operations on October 1, 1947 upon the purchase and combination of the transportation assets of the Chicago Rapid Transit Company and the Chicago Surface Lines streetcar system. In 1952, CTA purchased the assets of the Chicago Motor Coach Company, resulting in a fully unified system. The Chicago Transit Authority employs more than 11,000 people to operate the entire system. Today, the CTA is one of the three service boards financially supported by the Regional Transportation Authority (RTA). The Chicago Transit Authority covers Chicago city limits and forty surrounding suburbs. The CTA generates revenue from ‘farebox’ collections and also receives supplemental funding for operating expenses from the RTA. In 2006, CTA generated 53 percent of its operating budget internally, mostly from fares but also from advertising, parking, and other services; it received $ 524 million from the RTA, $ 479.5 million of which stemmed from sales tax receipts collected in the Chicago region.
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Renew America 1. Trash Bins: System Maintenance is responsible for servicing and maintaining all the space owned, operated and leased by the CTA. Trash bins are emptied by the Customer Facilities Maintenance staff. Approximately 6,000 bags of trash are removed annually from rail right‐ of‐ways. CTA is a member of the United States Environmental Protection Agency’s WasteWise program, which helps public and private companies to recycle and reduce waste. As part of the program, CTA has set out to reduce waste through recycling and waste prevention. In 1999, CTA launched recycling efforts for customers and employees. One of the most visible efforts is the blue bag newspaper recycling bins located in CTA train stations. With the Chicago Tribune as a partner and corporate sponsor, the CTA installed 285 recycling bins at 112 stations. The bins are marked "Read It & Recycle It. Newspapers Only”. The bins collect over 230 tons of newspaper annually from customers. In 2007, journalists observed CTA employees combining recycling bag waste with standard solid waste. The CTA has installed some recycling bins that have receptacles for a number of recyclable materials. With this bin, customers can deposit paper products, aluminum, plastic/glass containers and general refuse in one unit. Internally, the CTA is establishing a comprehensive recycling program at all of its facilities. Three of the CTA’s office buildings and the offices at eight bus garages are recycling and the program is expanding to the remaining facilities. 2. Advertising Opportunity: The CTA provided a total of 494.8 million rides in 2006, 2.4 million more rides (a 0.5 percent increase) over 2005 numbers. Gains were especially evident on the CTA’s rail system. CTA operates 24 hours each day and on an average weekday, 1.6 million passengers access its buses and trains. It has approximately 2,000 buses that operate over 154 routes traveling along 2,273 route miles. Buses provide about one million passenger trips a day and serve more than 12,000 posted bus stops. The Chicago Transit Authority's 1,190 train cars operate over eight routes and 222 miles of track. Its trains provide about 650,000 customer trips each day and serve 144 stations in Chicago. The system is the second largest in the US. To exploit this, the CTA’s Communications, Marketing and Customer Service department manages and generates advertising revenue. Advertisements are located on buses, trains in tunnels and stations. The forecasted revenue for 2008 is $ 27.4 million, reaching $ 31 million in 2010. In 2007, advertising, along with charter and concession revenues, generated $ 23,142,000, roughly four percent of total revenues. This was a $ 1.8 million shortfall. Vehicle and Platform ads are forecasted to be $ 21.6 million. Billboard revenues are forecasted to be $ 1.98 million. CTA is seeking additional advertising revenue opportunities (See Appendix 15 –
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Renew America CTA 2008 Budget). For 2008, the CTA has opened up more advertising space on rail station escalators. This includes opening up space in the Pedway. One 2007 idea was having heated bus shelters paid for by corporate sponsors. 3. Security: Safety is managed through the Security and System Safety department. The safety and security of customers and employees is a top priority at the CTA. CTA employees are specially trained to assist customers in an emergency situation where safety and security are concerned. CTA works with the Chicago Police and Fire departments and the City's office of emergency management communication. ii. Chicago Airport System: The Chicago Airport System, comprised of two major airports, Chicago O’Hare (O’Hare or ORD) and Midway International (Midway or MDW), is the centerpiece of the Chicago’s aviation network. The airports are owned and operated by the City of Chicago. The Department of Aviation is responsible for the management, planning, design, operation and maintenance of O’Hare and Midway. The Chicago Airport System is fully self‐supporting and receives no local taxpayers dollars. An executive staff of nearly 25 people oversees an extended staff of approximately 2,000 employees who maintain the daily operations of the Chicago Airport System. In 2007, the Chicago Airport System announced plans to privatise Midway International Airport. Although this would be the largest airport privatization in US history, the City is the most progressive large US city in infrastructure privatization. 1. Midway International Airport: MWD is located on the city's southwest side, eight miles from the Loop. Midway is heavily used by low‐cost carriers, such as AirTran Airways, ATA Airlines, and Southwest Airlines, and to a lesser extent by legacy carriers, such as Continental Airlines, Delta Air Lines, and Northwest Airlines. Both the Stevenson Expressway and CTA Orange Line provide passengers easy access to downtown Chicago. Chicago Midway Airport is the 2nd largest passenger airport in the Chicago metropolitan area, and is the 2nd busiest in the state. Midway Airport was built in 1923 and consisted of a single cinder runway that primarily served airmail services. Midway International Airport was awarded the 2004 Richard H. Driehaus Foundation Public Innovator Award for Physical Design. a. Trash Bins: Trash bins are emptied by subcontractors and employees of Scrub Inc. Its 200 dedicated crew members service trash bins and provide janitorial work. In 2005, Midway introduced a recycling pilot program designed to handle refuse at the source. New recycling bins were placed throughout the food court, public areas and offices to encourage passengers and employees to recycle their waste. Tenants have always been charged a fee for dumping waste in the airport’s
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Renew America receptacles. As an incentive to recycle, Midway reduced this fee for recycled materials. Airport employees were instructed on what and how to recycle at the airport. b. Advertising Opportunity: With 1,556,722 monthly passengers, 4,358,821 monthly advertising impression, 12,229,445 annual business passengers and 187,725 annual international travelers, MDW chose Clear Channel as its advertising partner. c. Security: The TSA, a component of the Department of Homeland Security that is responsible for security of the nation's transportation systems, is the primary provider of security at MDW. TSA is supported by other local and federal agencies 2. Chicago O’Hare International Airport: ORD is located 17 miles northwest of the Chicago Loop. It is the largest hub of United Airlines (whose headquarters is in downtown Chicago) and the second‐largest hub of American Airlines. The airport was constructed in 1942‐43 as a manufacturing plant for Douglas C‐54s during World War II. The site was chosen for its proximity to the city and transportation. By the early 1950s, Chicago Midway International Airport, which had been the primary Chicago airport since 1931, had become too small and crowded despite multiple expansions and was unable to handle the planned first generation of jets. The City of Chicago and FAA began to develop O'Hare as the main airport for Chicago's future. The first commercial passenger flights were started there in 1955, and an international terminal was built in 1958. O'Hare's high volume and crowded schedule can lead to cancellations and long delays that affect air travel across the United States. Official reports rank O'Hare as the least punctual airport in the United States based on percentage of delayed flights. City management has committed to a $6 billion capital investment plan to increase the airport's capacity by 60 percent and decrease delays by an estimated 79 percent. This plan was approved by the FAA in October 2005 and will involve a reconfiguration of the airfield and addition of terminal space. In January, 2007, it was announced that O'Hare International Airport won the Global Traveler Award for Best Airport in North America. O'Hare was awarded this honor by readers that participated in a survey that ran in the magazine from February 2006 to August 2006. O’Hare International Airport was voted "Best Airport in North America" in Business Traveler Magazine’s Annual Reader Survey. a. Trash Bins: Trash bins are emptied by subcontractors and employees of Scrub Inc. Its 200 dedicated crew members service trash bins and provide janitorial work. In 2004, Mistral
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Renew America publically stated that they installed BlastGuard containers in O’Hare. b. Advertising Opportunity: ORD is the second largest airport in the US. With 6,419,011 monthly passengers, 17,973,231 monthly advertising impression, 41,936,901 annual business passengers and 11,676,146 annual international travelers, ORD chose Clear Channel as its advertising partner. ORD is particularly attractive, as 26 percent of passengers have post graduate degrees, 75 percent have Household income between $ 100,000 and $ 300,000 and Nearly 4 of 5 are C‐ level executives (13.1 percent are at the CEO level). In the case of O’Hare, non‐airline revenues are comprised of 15 percent ‘other’ revenues. Advertising is consolidated into ‘other’ revenues with hotel rental, bus service, public pay phone, specialty shops and duty free. Other Revenue is forecasted to reach $ 38.6 million in 2012 and $ 60.5 million in 2022 (See Appendix 16 – ORD Implementation Plan 7.4.7). c. Security: The TSA, a component of the Department of Homeland Security that is responsible for security of the nation's transportation systems, is the primary provider of security at ORD. TSA is supported by other local and federal agencies. 2. Regulatory environment: a. Signage: i. Zoning Regulations: Chapter 17‐12 of the Chicago Zoning Ordinance regulates Chicago signage. The goal of the ordinance is to allow for adequate and effective signs, while preventing signs from dominating the appearance of the area. Previously erected signs are not subject to the May 2007 ordinance. Official, public notice and warnings signs are exempt. Portable electric signs are prohibited. (See Appendix 17 – 17‐2 Zoning) 1. Video Display Signs: A sign capable of displaying full‐motion imagery of television quality or higher. Video display signs have area and height limitations that do not impact Renew. They are prohibited in B1, B2, R and D Districts. They are also prohibited within 500 feet of Lake Shore Drive, Michigan Avenue (between Oak Street and Roosevelt Road) and expressways. a. The B1 Neighborhood Shopping District: The B1 Neighborhood Shopping District designation is intended to accommodate a broad range of small‐scale retail and service uses. B1 zones usually occur in areas where the streets are narrow and have low traffic speeds and low traffic volume. The physical characteristics of B1 Districts are intended to reflect storefront‐
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Renew America style shopping areas catering to pedestrians. Like B1, B2 zones usually occur in areas where the streets are narrow and have low traffic speeds and low traffic volume. b. The B2 Neighborhood Mixed‐Use District: The B2 Neighborhood Mixed‐Use District is the same as the B1 district. The primary difference is that B2 Districts provide a greater range of development options for those streets where the demand and need for retail and service uses is relatively low. B2 zones can be found at the intersection of major streets or on streets with low traffic speeds and volume. The physical characteristics of B2 Districts are intended to reflect storefront‐style shopping areas catering to pedestrians. c. The R Residential Districts: The R Residential Districts are intended to create, maintain and promote a variety of housing opportunities for individual households and to maintain the desired physical character of the city’s existing neighborhoods. While the districts primarily accommodate residential use types, nonresidential uses that are compatible with residential neighborhoods are also allowed. d. The DR Downtown Residential District: The DR Downtown Residential District is primarily intended to accommodate residential development and small‐scale commercial uses on lower floors, with residential units above. ii. The Loop: Video display signs are allowed in much of the Loop. The Loop is comprised of PD, DC and DV districts, which all allow video display signs. According to the Chicago Zoning Ordinance and special guidelines, Renew would be prohibited along State Street, Wabash Avenue, Michigan Avenue and any point 500 feet east of Michigan Avenue. The restriction on State and Wabash is based on restrictions for Flashing or Changing Image Signs. Renew would also be prohibited in a 500 feet radius from the landing of Interstate 290 in the Loop (See Appendix 18 ‐ Michigan Ave Signage & Appendix 19 ‐ State Street Wabash Signage) 1. Flashing Sign: Any sign or portion of a sign that contains an intermittent or flashing light source or that changes light intensity in sudden transitory bursts. Example of flashing signs include signs that contain or use strobe lights, or rotating lights; signs with blinking or flashing features that are designed to merely to attract attention rather than convey a message; and changing image signs that do not comply with applicable standards. 2. Changing Image Sign: Any sign that, through the use of moving structural elements, sequential lights, lighting elements, or other automated method, results in movement, the appearance of movement
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Renew America or change of sign image or message. Changing‐image signs do not include otherwise static signs where illumination is turned off and back on not more than once every 24 hours. iii. The Magnificent Mile: Based on zoning requirements, Video display signs are allowed in some of the Magnificent Mile. Much or the area is comprised of PD and DX districts, which all allow video display signs. However, some of the area is zoned as DR districts, where video display signs are prohibited within 100 feet. According to the Chicago Zoning Ordinance and special guidelines, Renew would be prohibited along Michigan Avenue and any point within 500 feet of Michigan Avenue. This is considering Renew as a flashing, animated or moving sign (See Appendix 18 ‐ Michigan Ave Signage). This portion of State Street and Rush Street have no special guidelines. b. Street Furniture: i. Trash Bin Design: The Chicago Department of Transportation chose the Victor‐ Stanley Steelsites S‐42 container, in the color black as the standard waste receptacle for use in the public way. Approved equals are allowed. This is a 36 gallon (136 liter) bin. Its United States Patent number is D487538. As with benches, this receptacle was selected for its durability under the most extreme environmental conditions, and its vandal‐proof protection against destruction and defacing. Waste receptacles should be placed two per block, on opposite corners at intersections. The local community generally verifies actual locations during the design phases of projects (See Appendix 20 – CDOT Streetscapes Guidelines Street Furniture). Figure C2 – Victor‐Stanley Steelsites S‐42 container.
Source: Victor‐Stanley. ii. Trash Bin Site: Permits for miscellaneous street furniture are regulated by the Department of Business Affairs and Licensing with a Use of the Public Way Permit (a grant of privilege) in the public way. Structures should be located a minimum of 2 feet from the face of curb to the edge of the kiosk, and should
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Renew America provide for 6 feet of clear sidewalk width for passage of pedestrians, except downtown, where 9 feet of clear sidewalk should be provided. They should not be located so as to obstruct the sight triangle (12 feet on each side) of an adjacent driveway or mid‐block crosswalk, and should be a minimum of 30 feet from an intersection on the near side approach, and 20 feet from the intersection on the far side. Grants of Privilege for permanent advertising sign kiosks bolted to the public way cannot be accepted within the Greater Downtown Area. Private kiosks/ground structure signs are not recommended by CDOT and require special permission and ordinance. Standard CDOT benches and trash cans should be used whenever possible. The City designated the Victor Stanley Steelsites S‐42 container, or approved equal, in the colour black as the standard waste receptacle for use in the public way (See Appendix 21 – Street and Site Design Plan, page 36). iii. The Central Area Plan: The Central Area Plan is Chicago’s guide for continued economic success, physical growth, and environmental sustainability for the coming decades. The City released a final version on June 12, 2003. In that version, it calls for expansion of the Loop’s high‐density office core into the West Loop near the Chicago River, and transit stations and Kennedy Expressway. In the Plan, there are specific references to street furniture. Street Furniture should be orderly and small as not to disrupt the pedestrian way. The plan encourages green street furniture, such as planters, and signage that enhance the pedestrian experience. It calls for consistent standards in design (See Appendix 22 – CAP Street Furniture). As the plan is enacted over the next twenty years, downtown Chicago’s economic engine would be strengthened, it’s parks and open spaces would be expanded, and its rapid transit and roadway systems would be extended and improved. c. Neighbourhood Association: i. Tax Increment Finance Districts: The TIF district program is used widely in the United States as an approach to redevelopment and revitalization. The program generates funds to pay for improvements to underused land, so that it becomes productive again, thus producing increased taxes for the designated district overall. The program is unique in that funds are generated not by increasing property tax rates, but rather through the increased tax revenue derived from improvements in the district (i.e., the tax revenue that exceeds a "baseline" level of tax revenue that is determined at the creation of the TIF district.) As impoverished properties within the district return to appropriate uses, the value of property in the district increases overall, generating increased tax revenues. The "increment" created between the "baseline" value and the new value is used for improvements within the TIF district. TIF eligible areas have lower property values than comparable areas, therefore, they are contributing less to the City's tax base. The City creates a TIF redevelopment plan to revitalize the neighborhood that reflects the opinions of City residents. Once the
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Renew America redevelopment plan is completed, the City Council votes on the creation of the TIF district. This system is common in Chicago. Some locals say the administration’s addicted to TIFs, which let the Mayor keep his grip on city operations and gave him a powerful weapon for keeping the City Council in line. TIFs cap the property taxes that get paid to entities like the Chicago Park District, the Board of Education, Cook County, and the Metropolitan Water Reclamation District for a period of 23 years. Once adopted, TIFs practically disappear from public view. They’re not listed in the City budget. The City offers no easy way to track a TIF over time and see how much is raised and spent. There’s an annual budget statement for each TIF, but it’s little more than an actuarial statement. ii. Special Service Area: The SSA program is a mechanism for contiguous industrial, commercial and residential areas to fund expanded services and programs through a localized property tax levy. These enhanced services and programs are in addition to services and programs currently provided through the City of Chicago. Such SSA funded projects could include: security services, business area marketing and advertising assistance, promotional activities such as parades and festivals, or any variety of small scale capital improvements which could be supported through a modest property tax levy (See Appendix 23 – Chicago Special Service Areas). 3. Municipal or other Governmental contracting bodies: a. The Chicago Department of Transportation: The Chicago Department of Transportation (CDOT) is responsible for city street, alley, sidewalk, and curb and gutter construction; bridge maintenance; public way inspections; signs and pavement markings; planter and median maintenance; bicycle and pedestrian programs; and ground‐transportation planning. i. City Streetscape Program: City Streetscape Program improves neighborhood commercial districts with infrastructure upgrades and decorative elements. Improvements typically include new sidewalk, curb and gutter, street resurfacing, decorative lighting, trash receptacles, benches, trees with tree grates and planters. They may also include other amenities such as decorative paving and neighborhood identifiers. The enhancements are designed by CDOT in close cooperation with community representatives and the local alderman, to increase the safety and improve the overall appearance of neighborhoods throughout Chicago. b. The Department of Planning and Development: The Department of Planning and Development (DPD) promotes economic development in Chicago by helping new and existing businesses meet their goals for growth while creating new jobs for city residents. DPD efforts are coordinated in the context of community‐based planning and augmented through the cooperation of community residents, business groups, delegate agencies and other organizations. DPD offers both small and large businesses a comprehensive menu of financial resources, such as low‐interest loans and Tax
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Renew America Increment Financing, and business services, such as site assistance and market information. The department’s use of public funds is strategically allocated to maximize private‐sector investment and to promote economic development in all neighborhoods of the city. DPD is also responsible for preserving the city’s architectural and historical landmarks, protecting the Chicago River and Lake Michigan shorelines, and creating new public greenspace for use by city residents, workers and visitors. The Department of Planning and Development is a leader and partner in creating opportunities for the preservation, growth, and sustainability of the diverse communities that make Chicago the most livable world‐class city. The DPD administers the Central Area Plan. The division is organized into seven Community Development Planning Districts, each headed by a district coordinator. Division functions include Project management and oversight for public and private investment within each of the seven Community Development Planning Districts and Business assistance Delegate Agency management. c. The Department of Streets and Sanitation: The Department of Streets and Sanitation provides essential municipal services in Chicago. In addition to sanitation and street works, the department is responsible for the City’s recycling program. So far, Chicago trash bins are ad‐free and designed to be attractive and functional. There are very few recycling bins on sidewalks, though a few are scattered around Millennium Park. There are solar‐powered trash compactors downtown and along the waterfront. Figure C3 ‐ Chicago solar‐powered trash compactors.
Source: Flickr. i. The Bureau of Sanitation: The Bureau of Sanitation collects residential garbage from low‐rise residential households in Chicago, along with city schools and other municipal agencies; performs street sweeping; collects yard waste; performs weed control; and enforces Chicago's sanitation ordinances. Each of Chicago's 50 wards has its own Ward Superintendent's Office where Sanitation Bureau local services are coordinated. ii. The Bureau of Street Operations: The Bureau of Street Operations through the Loop Operations program cleans and maintains the area bounded by Lake Michigan (east), Halsted Street (west), North Avenue (north), and Cermak Road (south). The daily services this program provides include hand sweeping of
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Renew America sidewalks and streets, mobile units which clean areas and respond to emergencies that require cleaning or the removal of debris from streets, refuse trucks which empty litter baskets, power washing and sidewalk flushing, snow and ice removal, graffiti removal, mechanical sweeping of all main streets and alleys and the use of mechanical sidewalk sweepers (Green Machines). This operation is functional twenty‐four hours a day, seven days per week. The Bureau of Street Operations is responsible for graffiti removal; maintenance of the Loop area; garage demolitions; vacant lot cleaning; street sweeping; snow and ice control in the winter; hoisting engineer allocation; salt inventory; command center and radio main; coordinates the use of laborers provided through the Cook County Sheriff's Work Alternative Program (SWAP), and the Community Service Program to temporary workers at no cost to the city. The bureau of Street Operations is responsible for the training of all Streets and Sanitation employees through the Safety and Training division. d. Department of Zoning: The Department of Zoning enforces Chicago's zoning ordinance to preserve, protect and strengthen city neighborhoods. It implements the city's land use policies to protect the character, harmony and stability of residential and business areas. The department also maintains and updates the city's zoning ordinance and official zoning maps. The Department reviews sign applications for location, size, placement, setback, height, type and other characteristics to ensure conformance with the zoning ordinance. e. The Department of Business Affairs & Licensing: The Department of Business Affairs & Licensing’s mission is to empower businesses to grow and succeed by providing information and services to help businesses act responsibly and create economic vitality and vibrant communities for the people of Chicago. Permits for miscellaneous street furniture are regulated by the Department of Business Affairs and Licensing. f. The Mayor's Pedestrian Advisory Council: The Mayor's Pedestrian Advisory Council (MPAC) includes members representing a broad spectrum of backgrounds, from health care and enforcement to disability rights and community groups. Several City departments are also represented. The MPAC focuses on a wide range of pedestrian issues: safety, public awareness, enforcement, infrastructure investment, and the like. The Council will help identify issues, discuss ideas and set priorities for pedestrian planning in Chicago. g. Office of Emergency Management and Communications: The Office of Emergency Management & Communications (OEMC) manages and operates the City’s public safety communications systems that coordinate the response of police, fire and Emergency Medical Services (EMS) resources to 911 calls. The OEMC operates a world‐class voice and data radio system, giving police and fire personnel, on the street, valuable information to help them respond quickly to emergency situations. 4. Key Persons: a. Thomas G. Byrne, CDOT Commissioner & MPAC Co‐Chair. b. Janet Attarian, Project Director, CDOT Streetscapes.
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Renew America c. Arnold Randall, Commissioner of the Department of Planning and Development. d. Terri Haymaker, Deputy Commissioner, Central Planning District, Department of Planning and Development. e. Janet Attarian, Project Director, Chicago Streetscape Program. f. Bob Richardson, Deputy Commissioner, Bureau of Street Operations. g. Charles Wren, Deputy Commissioner, Bureau of Sanitation. h. Dr. Katherine Kaufer Christoffel, MD, MPH, Children's Memorial Hospital & MPAC Co‐ Chair. i. Ty Tabing, Executive Director, CLA. j. David Forbes, Project Coordinator, CLA. k. John Maxson, President, GNMAA. l. Ellen Farrar, Vice President, marketing, GNMAA. m. Eric Stein, Communications Associate, GNMAA. n. Phil Levin, Planning Director, GNMAA. o. Sarah Fleming, Planning Manager, GNMAA. p. Frank Kruesi, President, CTA. q. Noelle Gaffney, CTA Spokeswoman, Advertising Expert. r. Craig Mele, Operations Manager, Clear Channel Airports. s. Scott V. Bruner, Director of the Department of Business Affairs and Licensing. t. Kevin Smith, External Relations, OEMC. 5. Current Contracts: a. Holders: i. JCDecaux: In 2001, JCDecaux closed a limited street furniture deal with the CDOT. ii. CBS Outdoor: In 2002, CBS Outdoor signed an exclusive agreement to market the CTA’s billboards. iii. Titan Worldwide: In 2007, Titan Worldwide won a limited agreement to sell CTA advertising space. iv. Clear Channel: In 2001, Clear Channel signed an exclusive agreement with the Chicago Airport System to provide advertising at MDW and ORD. v. Octagon Inc: In 2007, Octagon won an advertising contract to seek naming rights for Chicago buildings, events and programs. Octagon is a unit of Interpublic Group, based in New York. The Interpublic Group of Companies, Inc. (Interpublic), together with its subsidiaries, is an advertising and marketing services company that consists of communication agencies worldwide that deliver custom marketing solutions on behalf of its clients. The Company’s agencies cover a range of marketing disciplines and specialties, from traditional services, such as consumer advertising and direct marketing, to services, such as mobile and search engine marketing. Octagon is one of the world's leading sports and entertainment content marketing companies with global leveraging expertise in sponsorship consulting, event creation and management,
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viii. ix. x.
promotions, research, property representation. Octagon employs more than 1,000 people in 22 countries on five continents. SubMedia: In 2005, SubMedia entered into a limited advertising agreement with the CTA. Addiotionally, SubMedia has semi‐permanent Walking Displays in high footfall areas of the City. On Media: In 2007, On Media began a limited agreement to produce the Pedway Guide and manage three‐sided large format kiosks with advertising presence. On Media is a full‐service media division of Addison Myers LLC., offering multiple advertising venues, including: printed publication advertising, multimedia advertising, and large format advertising featured in kiosks. Addison Myers builds brands through marketing research, brand strategy and advertising channels. PromoMedia Concepts: PromoMedia has exclusive rights to advertise on the umbrellas, tabletops and pedestrian signs at Chicago’s North Riverside Plaza. CNN Airport Network: CNN Airport Network has a limited contract with the Chicago Airport Systems for ORD. BigBelly Solar: In 2007, The Streets and Sanitation Department installed three BigBellies in Downtown Chicago. In 2007, Chicago Park District installed 25 solar‐powered trash compactors. BigBelly Solar develops on‐site solar compaction systems. The Company was founded in 2003 as Seahorse Power with a mission to reduce fossil fuel consumption through cost‐saving approaches. The flagship product, the BigBelly System, is a patented compacting trash receptacle that is completely self‐powered. Instead of requiring a grid connection, BigBelly uses solar power for 100 percent of its energy needs. The unit takes up as much space as the "footprint" of an ordinary receptacle with a capacity five times greater. The BigBelly units look like ordinary trash cans, but can hold up to 4 to 6 times as much trash as ordinary units. Because they are less prone to overflows, seagulls and other birds get less food. This leads to decreased amounts of birds droppings, which contribute to high levels of E.coli bacteria in water. Bear and raccoon‐resistant BigBelly units can also be installed in National Forests and State Parks. (See Appendix 24 – BigBelly Brochure) The 540‐pound receptacles, anchored to a concrete pad, have never been stolen because there is not much value in them for their electronic parts. The Big Belly is the brainchild of Jim Poss, a self‐described gadget‐lover. Now there are Big Bellies on street corners, in parks and on beaches in several cities, including Boston, Baltimore, Cincinnati, New York and Vancouver; and in some state and national parks. BigBelly also provides cost efficiencies from labor savings, fuel cost and maintenance savings, as well as environmental benefits from reduced emissions of greenhouse gases and other pollutants. Increased capacity reduces collection trips and can cut fuel use and greenhouse gas emissions by 80 percent. In 2005, Seahorse had approximately $275,000 in sales. In its second year, it reached $1 million. The primary
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Renew America customers are municipal governments, the U.S. Forest Service, and state parks; all of whom have annual sales cycles. Vail Ski Resort in Colorado was Seahorse's first customer. Though the first BigBelly cost $10,000 to build, Poss sold three of them to Vail for $5,500 each. The Company has sold about 500 of the cans, which are in use in 10 countries. Figure C4 – BigBelly.
Source: BigBelly Solar. xi. Victor‐Stanley: In 2003, Victor‐Stanley was chosen by CDOT to provide benches and trash receptacles. Since 1962, Victor‐Stanley has manufactured Site Furnishings. Commercial site furniture includes litter receptacles, benches, tables & chairs, picnic tables, ash urns, planters, tree guards, seats, bike racks & bollards. Carefully integrated designs and innovative use of materials and technology are hallmarks of its commitment to manufacturing durable, attractive, strong, and comfortable site furniture. b. Pricing: i. JCDecaux: The 2001 Street Furniture deal is supposed to generate approximately $ 300 million for the City in twenty years. JCDecaux designs, fabricates, installs, maintains and operates 2,000 bus shelters, 21 newspaper vending stands, 110 multiple news paper vending racks, 7 supervisor kiosks and 10 vending community/cafe kiosks; and manages advertising. This included ten‐ foot‐tall back‐lit structures, under the banner “City Information. The street furniture fits in well with the city’s Art Deco aesthetic and the other black wrought‐iron street furniture. The deal was for ten and a half years, with two five year extensions. A Freedom of Information Act request has been made for Renew concerning this contract. ii. CBS Outdoor: The five‐year, $3 million agreement with CBS Outdoor guarantees CTA no less than $600,000 per year for 18 billboards located on CTA property. Under the agreement, the CTA will receive 65 percent of CBS Outdoor’s net revenues with a guaranteed minimum of $600,000 for the first two years of the contract. That amount will increase to 68 percent of net revenues during the
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third, fourth and fifth years. CTA had a $ 20 million MAG with CBS Outdoor for space on buses, trains and in stations prior to 2007. Titan Worldwide: The Chicago Transit Authority awarded Titan Worldwide a three‐year contract, effective February 2007, to sell advertising media. Its creative ideas for non‐traditional ads were highly appreciated at the CTA. The contract had previously been handled by CBS Outdoor. The contract calls for Titan Worldwide to sell space on buses, trains and in stations. The MAG is $ 67 million over three years. A Freedom of Information Act request has been made for Renew concerning this contract. Clear Channel: Clear Channel’s agreement with the Chicago Airport System is exclusive and will conclude in August 2008. Clear Channel provides dioramas, spectaculars, wall wraps, other wraps, banners and luggage carts in MDW. In the MDW deal, Clear Channel provides a $ 1 Million MAG, 60 percent of sales and made a $1.5 million initial payment. Clear Channel provides digital displays, dioramas, mini‐spectaculars, spectaculars, other spectaculars, wall wraps, other wraps, banners, rail system, luggage carts and floor exhibits in ORD. Clear Channel launched its first, indoor digital billboard network at ORD. Eight 6’x 8’ LED (light emitting displays) units feature 10‐seconds spots, 24 hours a day, 7 days a week throughout the United Airlines B and C Concourses. The displays are manufactured by Newton Technologies. Newton Technologies is a Korean firm which develops innovative digital displays and applications. Clear Channel funds “Virtual Concierge” work stations in the baggage claim area of ORD and MDW. The kiosks provide hotel, transportation and airport information, including flight status and weather updates, in Arabic, Chinese, English, French, German, Japanese, Polish and Spanish. The kiosk also provides information about City of Chicago events and attractions from the Chicago Office of Tourism. Octagon Inc: Octagon won a $ 285,000 City of Chicago advertising contract to seek naming rights for Chicago buildings, events and programs. Under terms of the contract, Octagon will inventory city programs, events, buildings and other physical assets and determine which would be most attractive to companies that might want to affix their names in some way. The contract states that any plan must ensure "the integrity of the city of Chicago's brand image," with ideas to be presented to an advisory group of civic leaders, which has not yet been formed. Octagon is expected to report its findings, as well as potential corporate sponsors, in Spring 2008. SubMedia: In 2005, SubMedia entered into a limited advertising agreement with the CTA. Turning dark tunnels into revenue proved beneficial for the Chicago Transit Authority, which was in need of additional cash streams. Located within the highly desirable loop area, the display reaches 2.78 million commuters and tourist monthly. The ads are located on the Blue Line entering the loop from O’Hare, located between Clark and Washington stations. The CTA anticipates $ 100,000 in advertising revenue from the agreement. Submedia
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Renew America also has Semi‐permanent Walking Displays which shows advertising movies that follow viewers as they walk past the display. Locations include Lincoln Park, club district and financial/loop area. The displays are sixteen feet long or eight‐ feet long. vii. On Media: On Media produces the Pedway Guide. The guide is distributed at 200 high traffic points in the Pedway and at luxury hotels. Circulation is 15,000 per quarter. Rates range from $ 150 for a listing to $ 1495 for the cover. At high traffic locations throughout the Pedway, On Media has three‐sided large format kiosks, known as PedScapes. One panel on each kiosk has a 24in x 36in back lit panel featuring a detailed Pedway map and retailer listing. The remaining two panels offer advertising presence. Panels are in full color graphics. Figure C5 – PedScapes.
Source: On Media. viii. PromoMedia Concepts: PromoMedia has exclusive rights to advertise on the umbrellas, tabletops and pedestrian signs at Hermes Cafe and the adjacent public seating area at Chicago’s North Riverside Plaza. The contract calls for 55 branded umbrellas posted from 10:00AM to dusk, two pedestrian signs, 23 tabletop wraps and 35 branded napkin dispensers. The program runs Between June and September. The campaign reaches 2,000 patrons and 45,000 commuters per day ix. CNN Airport Network: The CNN Airport Network operates its network at ORD. This allows the network to sell advertisement. The contract either is coordinated by Clear Channel or per‐dates the Clear Channel deal. x. BigBelly Solar: The Streets and Sanitation Department installed three BigBellies in Downtown Chicago. Chicago Park District has installed 25 BiggBellies, anchored by the City’s beaches. Chicago is paying between $ 3,600 and $ 3,900 per unit, hoping to offset the cost through collection savings. There is also hope that the cans will reduce the average 70 annual swimming bans caused by defecating birds that are attracted by trash. Estimates suggest that the price is recouped, when compared with the maintenance costs of a regular can, in about five years.
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Renew America xi. Victor‐Stanley: According to the CDOT Streetscapes guidelines, Victor‐Stanley is the provider for benches and trash receptacles. Benches include the Ribbon Bench RB‐28 and the Ornamental BenchCR‐10. Black is the only color. The S‐42 trash receptacle usually sells for $ 698. Figure C6 – Victor‐Stanley Ribbon Bench RB‐28.
Source: Victor‐Stanley. c. Non‐Measurable Attributes. i. JCDecaux: Infinity Outdoor (CBS Outdoor) lost while biding $ 39 million more than JCDecaux for the street furniture contract. The five criteria outlined in the city's request for proposals were design and manufacturing; maintenance; experience; minority participation, and financial compensation. Much criticism has been lobbied against the city and Mayor Daley’s close relationship with JCDecaux. When bus shelters were installed along Michigan Avenue, merchants and landlords complained they were clunky and upset the existing streetscape. At a press conference, Daley taunted the GNMAA, stating merchants could remove the shelters if they’d agree to cover the lost ad revenue. In 2007, Mayor Daley was criticized for being the guest of JCDecaux in Paris to try the Company’s city bike program. During the visit the Mayor complimented the Company’s president and indicated that Chicago would pursue such a program. Chicago’s strong unions have called for the unionization of JCDecaux’s employees because they are subcontractors for the City. ii. Outdoor Survey: Medill Reports surveyed nearly 500 outdoor ads throughout Chicago over six weeks. Medill Reports analyzed three kinds of outdoor advertising (on CTA vehicles, taxi cabs and street furniture) in terms of racial diversity, content and local interests served. The CTA signage, managed by outdoor‐ad specialist Titan Worldwide, fares far better than the others on all three counts. First, CTA ads portray people from a relatively wide array of races and ethnicities. The racial breakdown comes near to reflecting Chicago’s population, which in 2000 was 37 percent black, 31 percent white, 26 percent Hispanic and 5 percent Asian. However, men outnumber women by a ratio of two to one in CTA advertisements. Chicago taxi ads depict white males at a rate
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Renew America of 64 percent. A large portion of these displays avoid the problem by excluding people altogether, and 28 percent of the human figures counted are partially hidden or obscured. Similarly, six out of 10 outdoor ads on street furniture do not portray people, but those that do go for white, male faces 60 percent of the time. There was just one black male. Next, 26 percent of CTA ads fall under the public service umbrella, promoting education, housing and anti‐drug or anti‐ crime initiatives. Overall, just 16 percent of outdoor displays in Chicago do some public service. Nearly half of the street furniture ads surveyed market products from shoes to watches to handbags and back. Fifteen percent of these promote food or beverages; mostly beer and alcohol. There was only one true City Information panel: a map of the Loop. Finally, the number of local interests served is low across the board. According to the Web site of the Outdoor Advertising Association of America, 70 percent of outdoor ads promote local businesses, but that’s not true in Chicago. The CTA again outpaces its counterparts, with 48 percent of ads local, compared with 45 percent of cab ads and just 33 percent of street furniture ads serving local interests. Overall, two‐ thirds of people portrayed in city outdoor ads are white, and aside from several bus ads for Telemundo, every ad is in English only. A number of advertisements, especially on the CTA, show images of people where they might have been omitted. One such ad, a bus poster for St. Joseph Hospital, showcases three of its doctors – but all three are middle‐aged, white men. White people are found in a variety of roles in outdoor ads. Minorities, on the other hand, tend to show up only to represent something, like athletic ability or urban style or a rehabbed, newly employed citizen. Notably, non‐whites are bunched together in city ads. For example, the count of blacks was skewed high due to posters for two movies, counted 13 times together, on exterior bus panels. If Medill Reports removes those two ads from the data set, black representation falls from 21 percent to 5 percent; this despite a black population in Chicago of 37 percent. Few individual black people are shown. They include footballer Walter Payton, pictured on a bus ad for the Liver Center named after him, and young black males on separate posters for Gordon Tech High School, a private school, and Grand Valley State University in Michigan. One CTA bus, traveling Route 29, sports three exterior ads targeted to a black audience: a side banner for Nancy’s Pizza depicting two black males; another banner that reads, “Buy black, give back;” and a rear display for the Bernie Mac Show, picturing the grinning black comedian. iii. Bureaucracy: In a 2005 Chicago Tribune article, referring to new advertising space with the CTA, the newspaper sighted that “the contracts and city hall red tape make it difficult to introduce new types of advertising and give little incentive to do more than meet (Viacom) contract conditions. iv. Clear Channel: In 2004, Clear Channel radio stations in Chicago, ordered its on‐ air talent to stop reporting Kennedy Expressway travel times to O'Hare, the
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Renew America landmark end point familiar to most motorists. Clear Channel holds the advertising contract for ORD. This was part of a yearlong marketing agreement with Allstate Arena, the first under Clear Channel's "traffic destination rights program". Clear Channel radio station now report travel times from Downtown to the Allstate Arena rather than to O'Hare. 6. Conclusions: a. Market for Renew: Chicago’s concentrated affluent residents, large business and finance employment base and strong tourism industry make it an ideal outdoor advertising market. The fact that the Loop and Magnificent Mile share a border along Michigan Avenue creates an ideal footprint for Renew. The City’s institutions are aware of the security risk. The City’s focus on increasing sidewalk space for pedestrians will impact Renew negatively. Chicago’s purchase of BigBelly trash bins for $ 3,600 to $ 3,900 per unit suggests that the trash bin is outside of its street furniture advertising revenue model. b. Legal Constraints: There are aspects of the zoning ordinance which would prohibit Renew in some of the ideal locations for its deployment. This is due to the type of advertising Renew would deploy. Due to the layered nature of Chicago’s bureaucracy, Renew will need legal advice to move forward. The Mayor’s close relationship with JCDecaux could also create problems. Chicago’s usage of TIF’s suggests a more complicated and possibly corrupt environment. c. Urban Deployment: By working through Chicago’s alliances, Renew can focus its geographical scope while allowing local officials to champion the project through City bureaucracy. The alliances take an active role in streetscape and have been open to innovative ideas in the past. They may gain through championing a new and pioneering project like Renew. In order to win approval, the alliances will have to take the project to the Department of Planning and Development, the Chicago Department of Transportation, the Department of Streets and Sanitation and the Department of Business Affairs & Licensing. The Department of Zoning would have to be involved as the zoning ordinance may need to change. Based on common operating experience, it is likely that the City will seek MAG, a percent of revenues and ad space. d. Transit Deployment: The CTA is a loss making institution that has a history of using advertising inventory to shore up losses. The Chicago Airport Systems has a good financial track record, but like the CTA, has earned significant revenue by selling advertising. In order to avoid current contractual constraints and high advertising benchmarks, Renew should leverage its bomb resistant qualities. There has been increased pressure by US Representative Anthony Weiner to respond to the DHS Directive to implement Bomb resistant trash bins. CTA has made no mention of bomb proof trash bins while seeking innovative ideas like SubMedia, Titan and possibly heated bus shelters. e. Next Steps: i. Win interest in the alliances, with a particular focus on the GLA and the GNMAA (due to their demographics and location). Do this through focusing on the level
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Renew America of investment and the gains for the neighbourhood – security, emergency and public information distribution. This includes adding light to City streets and usage of National Threat Advisory, Amber Alerts, Weather Alerts, Local Alerts and Traffic Alerts. ii. Create a benefit for the City of Chicago and stockholding departments, by emphasizing the popular support that Renew would deliver. iii. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. iv. Seek legal advice on working with the The GNMAA Sign Ordinance Review Task Force to understand and adjust the zoning ordinance, and contracting with the City.
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WASHINGTON DC
Renew America
Washington DC
PART V
1. Large Single Market Opportunities: Like New York, Washington DC has a strong BID presence with a good track record. These BIDs will be the primary form for segmentation. These BIDs cover dense, affluent areas where Renew may succeed. Two emerging Virginia areas are covered, which are governed by county governments. Finally, the area’s mass transit authority and its airports are covered. a. Business Districts: i. Downtown BID: The Downtown BID is a tax‐funded nonprofit that works to revitalize the city's urban core. The District covers a 140‐block neighborhood near the U.S. Capitol to the White House where property owners tax themselves to make their community cleaner, safer and more vibrant. The tax is used by the BID to purchase services and capital improvements that supplement those provided by the city. The Downtown BID consists of approximately 825 properties within the area bounded by the National Mall on the south, Massachusetts Avenue on the north, Louisiana Avenue to the east and the White House to the west. The Downtown BID encompasses the Penn Quarter, Gallery Place, Chinatown, McPherson Square, Federal Triangle, Midtown and Franklin Square neighborhoods (See Appendix X ‐ Downtown DC BID Map). The Downtown BID began services in November 1997 when the Downtown Safety and Maintenance (SAM) teams took to the streets to provide their signature "Clean, Safe and Friendly" program. Today, the Downtown BID is enhancing the area by providing vital services such as hospitality, safety, maintenance, public space programming, streetscape, homeless services and transportation improvements, economic development and marketing and communications. The BID promotes Downtown DC as a world‐class commercial, cultural and residential destination. The Downtown BID is working with the city to implement a physical improvement program that includes brighter and more attractive new street lights, a top quality signage and “way‐finding” system, upgraded sidewalks, new street furniture and landscaping. New streetscapes and public places like markets and sidewalk cafes will also be developed to make Downtown vibrant throughout the day and into the evening. The private sector invested more than $ 13 million in new Downtown sidewalks, lighting, and street furniture (see Appendix XXVII – Downtown Streetscape Enhancement & Appendix XVIII – Downtown Regulation). 1. Trash Bins: Downtown SAMs supplement city services by providing daily sidewalk and curb cleaning, trash bagging and removal of litter in all 140 blocks of the Downtown BID. Heavy street cleaning machines are utilized primarily in the early morning hours and steam cleaning is done at night. SAMs paint light poles, utility boxes, trash receptacles and make minor repairs. Street‐level graffiti and illegal posters are
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Renew America removed or painted over within 24 hours of report. Keeping the streets free of litter and graffiti maintains order, sends the message that someone cares and discourages further violations. The Streetscape Enhancement currently dictates that the BID use black Ironside Bethesda trash bins; four per block side. Black has been set as the standard color and 36 gallon plastic liners are used. It states ‘Trash receptacles contribute to the overall character of the Downtown by discouraging litter. As a part of the collection of site furnishings, they are an attractive site element promoting a unified streetscape throughout the Downtown. Trash receptacles should typically be located at street corners as well as several locations mid‐block. Other strategic locations include building entrances, food services, Metro stations and other congregation points. All trash receptacles shall be black, powder coated steel.’ 2. Advertising Opportunity: Since the Verizon Center’s arrival in 1997 (then known as MCI), the area constituting the Downtown BID has been experiencing a tremendous renaissance. The revitalized Downtown has lots of opportunities for advertisers looking to capture the nearly 230,000 office workers, seven million annual visitors and 11,000 residents in this area. DC’s Downtown is continuing to experience growth in its office and retail markets. By 2010, Downtown will add another 12,000 office workers, five million visitors per year and 7,000 residents. Downtown’s unique market includes the best transportation infrastructure in the metropolitan Washington region, diverse and highly educated daytime and residential populations and more entertainment options than any other single area of the city or region. The geographic centre of Downtown is 7th Street and F Street. According to a 2006 ESRI study, the population within a half mile radius of this point is middle class. Per capita income is $ 41,841 and average household income is $ 62,480. The median age is 45 years old and the average household consumer expenditure is almost $ 23 thousand. The BID provides its own figures and many reports that suggest higher income and marketing value. 3. Security: The most visible element of the Safety and Maintenance programs of the Downtown BID is the men and women in red uniforms. Safety SAMs provide a reassuring presence on the streets and assist visitors with a variety of needs including directions, transportation information and emergency response. They patrol Downtown daily on foot and bicycle focusing on the busiest pedestrian areas and special events. SAM teams serve as "eyes and ears" for local law enforcement agencies and are radio‐equipped for instant reporting. Through high visibility and consistent coverage, they provide effective crime
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Renew America deterrence, warm hospitality and timely information. SAMs are linked by radio to a central dispatch station, where computerized information is available on all local businesses, restaurants, attractions and services. ii. Golden Triangle BID: The Golden Triangle ‐ Washington, DC’s Central Business District – is a bustling business neighborhood of shops, restaurants, and hotels. Founded in 1997, the Golden Triangle BID is a private non‐profit 501(c)(6) corporation that works to enhance the central business district in Washington, DC. The BID’s primary focus is to provide a clean, safe and friendly environment within its 42 blocks of public space for area workers and visitors, and to retain and attract businesses to the Golden Triangle. The BID elects a Board of Directors to govern its activities, and its day‐to‐day management is overseen by a full‐time staff headquartered in the center of the Golden Triangle. From newspaper condos to bike racks and benches, black street poles to cigarette urns and trash receptacles, the Golden Triangle BID helps enhance the streetscape and attractiveness of the public space through its capital improvement programs. The BID represents 30 million square feet of commercial office space, 4,000 businesses, 600 retailers, 200 restaurants, seven hotels, and four U.S. National Parks. All commercial property owners within the Golden Triangle are members. The fiscal year 2007 operating budget was $ 3,621,039 (See Appendix IXXX ‐ Golden Triangle BID Map). 1. Trash Bins: The Golden Triangle BID's Clean Team is hard at work on the streets, and their dedication has led to the development of a neighborhood that is an attractive place to work, shop, dine and do business. Throughout the year, the Clean Team can be found operating cleaning equipment, painting light poles and fire hydrants, and maintaining the BID's streetscape furniture, all the while setting the standard for neighborhood cleanliness in the city. The Clean Team Ambassadors can also be seen pulling trash bags, removing graffiti, sweeping curb cuts, and removing gum off of walkways. In 2006, the team pulled 80 thousand trash bags from receptacles. The BID has installed a similar designed cigarette ash tray next to many of its trash receptacles. This BID does not have a DDOT regulation governing the streetscape enhancement and bin design like the Downtown BID. 2. Advertising Opportunity: Located in DC’s central business district, the Golden Triangle is a premier destination for business. The bustling area is home to lobbyists, law firms and headquarters for non‐profits and national associations. It also offers some of the finest shopping, dining and entertainment in the city. With an eclectic mix of everything from intimate coffee houses to gourmet restaurants, to specialty boutiques and upscale clothiers, the Golden Triangle appeals to consumers ranging from college students to locals to international dignitaries. A 42‐block special district from 16th Street to 21st Street and Dupont Circle to
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Renew America Pennsylvania Avenue, the Golden Triangle gets its name courtesy of the local real estate community due to its prestigious tenants and wide array of businesses. The geographic centre of the Golden Triangle is 19th street and L street. According to a 2006 ESRI study, the population within a mile radius of this point is affluent. Per capita income is $ 57,643 and average household income is $ 94,821. The median age is 33 years old and the average household consumer expenditure is almost $ 33 thousand. 3. Security: The Golden Triangle BID works closely with law enforcement agencies including the DC Metropolitan Police Department, Metro Transit Police and Park Police on public safety issues that may impact the neighborhood. Through regular meetings, the BID also helps facilitate communication between property managers and business representatives in the Golden Triangle and law enforcement agencies. As the “Eyes and Ears” of the neighborhood, the Ambassadors perform a vital role in reporting accidents and safety concerns to the proper authorities. Because they are often the first on the scene of an accident, the Ambassadors are also trained in CPR. The Golden Triangle BID's Hospitality Ambassadors create a friendly and welcoming neighborhood for the hundreds of businesses and hundreds of thousands of workers and visitors in the central business district of Washington, DC. Dressed in the BID's signature gold and black, the Hospitality Ambassadors greet visitors, give directions and provide extra eye and ears on the streets. Figure 22 – Golden Triangle Ambassador works with DC Metro Police.
Source: Golden Triangle BID. iii. Pentagon and Crystal City: Pentagon City is an unincorporated neighborhood (also called an "urban village") located in the southeast portion of Arlington County, Virginia, near The Pentagon and Arlington National Cemetery. Due to its proximity to Washington, DC, this community of residential, office, and retail
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Renew America complexes is a major tourist stop. Crystal City is a neighborhood in the southeastern corner of Arlington County, Virginia, a suburb of Washington, DC Just south of downtown Washington, Crystal City is centered along a stretch of Jefferson Davis Highway (U.S. Route 1), just south of The Pentagon, just east of Pentagon City, and within walking distance to the west of Ronald Reagan Washington National Airport. Characterized as one of many "urban villages" by Arlington County, Crystal City is almost exclusively populated by high‐rise apartment buildings, corporate offices, hotels, and numerous shops and restaurants. There is also an extensive network of underground shopping areas and connecting corridors beneath Crystal City. These two areas represent an affluent government district which is emerging in Washington DC. Much of the Public space is divided between the county, Metro and the military infrastructure. There is no governing BID. b. Shopping Districts: i. Georgetown BID: The Georgetown Business Improvement District (BID) works to protect and enhance the accessibility, attractiveness and overall appeal of Georgetown. Established, funded and founded in 1999 by its property owners and merchants, the Georgetown BID has set a standard of excellence in preserving historic charm while meeting contemporary needs. From marketing and special events, to transportation and streetscape, the Georgetown BID contributes to the vitality and quality of life in Georgetown. Governed by a Board of Directors elected by its membership of approximately 1,000 businesses, the Georgetown BID is proud of the role it has played in the ongoing evolution as an exceptional shopping, dining and visitor destination. The neighborhood is serviced by the Georgetown Business Improvement District which works to enhance the area in a number of areas: transportation and parking management, public safety and maintenance, streetscape improvements and marketing, events and promotion. Today, the Georgetown Business Improvement District continues the tradition of Georgetown’s story with the businesses of Georgetown at the forefront. The BID diligently guards Georgetown’s past. The BID continues to research avenues to strengthen and enhance the character of Georgetown. Incoming new business into this historic landmark mark the continued success of Georgetown as the preeminent business hub of Washington DC. The BID is upgrading transportation, creating more events and sparkling walkways. The BID had total support and revenue of $ 4.5 million in 2006 (See Appendix XXX ‐ Georgetown BID Map). 1. Trash Bins: The Deputy Executive Director for Operations directs and manages all street‐services programs and maintains the public space (streetscape, transportation and public safety) within the commercial areas of the Historic District. The Georgetown BID Clean Team works seven days a week, keeping the streets of Georgetown clean. Uniformed in their khaki suits stitched with the blue and green
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Renew America Georgetown BID logo, the Georgetown BID’s Clean Team continues to be the stewards of Georgetown’s appearance and presence. The team removes public space trash from the ground and 105 receptacles and coordinates with DC agencies for overall upkeep. It removed 49 thousand trash bags in 2006. This BID does not have a DDOT regulation governing the streetscape enhancement and bin design like the Downtown BID. 2. Advertising Opportunity: Attracting over 5 million visitors a year from across the country and throughout the world, Georgetown, with its rich history and charm, encompasses the finest residential and retail district within Washington DC and the surrounding suburbs. Georgetown is the heart of luxury shopping in the Capital and is home to some of DC’s most exclusive restaurants, spas and hotels. A magnet for some of the most upscale retailers and services, Georgetown’s business district flourishes seven days a week. In addition, the exciting nightlife features internationally known artists and entertainers. This energetic engine of commerce is complemented by the early Federalist architecture, the historic brick and frame row houses, cobblestone neighborhood streets and multi‐million dollar mansions. It is a hub of activity that echoes the charm of old Washington. The neighborhood is also home to the world‐renowned Georgetown University and is within walking distance of George Washington University, which have a combined student population of nearly 32,000, adding to the already vibrant district. Many leading figures in politics, media, and commerce reside in this upper‐bracket community. Current inhabitants include Massachusetts Senator John Kerry, past Washington Post Editor Ben Bradlee, Washington Post Watergate reporter and current assistant managing editor Bob Woodward, former Secretary of State Madeleine Albright, Clinton aide George Stephanopoulos, and Montana Senator Max Baucus, among others. High‐end developments and gentrification have revitalized Georgetown's formerly blighted industrial waterfront. The geographic centre of Georgetown is P Street and Wisconsin Avenue. According to a 2006 ESRI study, the population within a half mile radius of this point is affluent. Per capita income is $ 103,658 and average household income is $ 192,381. The median age is 36 years old and the average household consumer expenditure is almost $ 64 thousand. 3. Security: The team collaborates with Metropolitan Police Department on public safety issues. The Georgetown BID, in partnership with the District of Columbia Metropolitan Police, initiated a Crime Alert Notification Pilot for the Georgetown Business Community. Using existing technology from the DC Emergency Management Agency
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Renew America DCAlert Program, businesses are alerted via text messages by MPD in "real time" when a crime occurs. The BID has registered approximately 200 businesses. The BID’s proactive approach to public safety led to the successful Business Beat Officer Program. Initiated by the BID, and in cooperation with the DC Municipal Police Department in 2005, the program continued its growth in 2006. Led by Officer Shante McGee and Officer Mark Lee, the Business Beat Officers walk the beat daily and are well known to the Georgetown BID merchants. Their responsibilities include responding to safety concerns and providing advice about protecting businesses and clients ii. Tyson’s Corner: Tysons Corner is an unincorporated area in Fairfax County, Virginia, near Washington, D.C. between McLean, Virginia and Vienna, Virginia along the Capital Beltway (I‐495). Recognized by the U.S. Census Bureau as a census‐designated place, the community's population was 18,540 as of the 2000 census. It is home to Tysons Corner Center, a super‐regional shopping mall, and to a second, more upscale mall called Tysons Galleria, which neighbors it on the other side of Virginia Route 123. As of 2005, Tysons Corner has 25.6 million square feet of office space and over 4 million square feet of retail space (largest on the East Coast after New York City), making it an important business district in its own right and the classic example of an edge city. Tysons Corner serves as a "downtown" of Fairfax County, with one quarter of all office space and one eighth of all retail in the county. It is an auto‐oriented edge city with severe traffic congestion, and it faces competition from the urban areas of Arlington and newer suburban edge cities such as Dulles. With the extension of Metro's Silver Line, Fairfax County plans to urbanize Tysons Corner by adding multiple modes of transit, pedestrian‐friendly street design, and ground‐level retail; however, recent decisions to build above‐ground tracks and stations instead of underground tunnels have resulted in controversy. The median income for a household in the community was $ 74,151, and the median income for a family was $ 94,227. c. Transportation Hubs: i. The Washington Metropolitan Area Transit Authority: The Washington Metropolitan Area Transit Authority (WMATA) is a tri‐jurisdictional government agency authorized by Congress, that operates transit service in the Washington DC metropolitan area, including the Metrorail and Metrobus. WMATA is jointly funded by the District of Columbia, Virginia, and Maryland. WMATA operates rapid transit service under the Metrorail brand, as well as fixed‐route bus service under the Metrobus brand. WMATA is also part of the public‐private partnership that operates the DC Circulator bus system. WMATA also has its own police agency, the Metro Transit Police. Colloquially, Metrorail is known as "The Metro". Currently, the Metrorail is being extended to provide service to the Tysons Corner area of Virginia, with further extension to Dulles Airport. Half
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Renew America of the system, including most of the stations in the District of Columbia, is underground; but most suburban stations are on elevated rails or at grade. While fares and advertising provide some revenue for Metro, significant funding is contributed by each jurisdiction that it serves, as well as by the states of Maryland and Virginia. Fares and other revenue fund 57.6 percent of daily operations while state and local governments fund the remaining 42.4 percent. 1. Trash Bins: The garbage is emptied by the property owner who is ultimately responsible. Metro Transit Police issue citations and sometimes make arrests to enforce polluting laws. News Paper recycling bins at Metro Center during the morning rush hour, the trash cans fill up every fifteen minutes, mostly with Express newspapers. Custodians must lift these heavy sacks of trash, so they would like some more trash cans to help ease the load. Metro is the only major urban public transportation system to make a significant investment in blast resistant trash bins. In the Summer of 2002, WMATA purchased 400 Mistral bomb containment trash cans, cost of $1 million, that were installed near the fare vending machines and faregate areas of all Metrorail stations. The installation of those receptacles was made possible through an emergency safety and security funding grant from The White House and the U.S. Congress in December 2001. This caused significant increases in littering and trash overflow. In 2005, WMATA ordered 208 explosion‐mitigating trash receptacles for use on Metro platforms. Metro rail is considering purchasing more BlastGard receptacles. 2. Advertising Opportunity: The Metrobus and Metrorail system covers all of the District of Columbia and the suburbs of Maryland and Northern Virginia. Exterior bus advertising penetrates 90% of the daily population and makes multiple impressions all over the region, throughout business districts, residential areas and tourist attractions. Advertising in the Metrorail system provides an opportunity to target business executives, federal employees, students and tourist. In the WMATA’s 2004 survey, they found that 35 percent of MetroRail’s riders had incomes over $ 100,000. 24 percent described themselves as Executive/Managerial and 73 percent ride at least three times per week. To exploit this population, WMATA contracted with an advertising partner to seek revenues. Between 2007 and 2008, budgeted advertising revenue was expected to increase from $30 million to $33 million. In order to improve revenues, WMATA increased the advertising inventory in its systems. This included giving its advertising partner the right to have advertising on trash receptacles (See Appendix XXXI – WMATA Advertising Inventory Action). After its implementation,
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Renew America advertising revenue for 2008 was estimated at $38 million (12.5 million is expected from MetroRail). 3. Security: Metro is patrolled by its own police force, which is charged with ensuring the safety of Metro customers and employees. Transit Police officers patrol the Metrorail system and Metrobuses, and they have jurisdiction and arrest powers throughout the 1,500‐square‐mile Metro service area for crimes that occur on or against transit authority facilities, or within 150 feet of a Metrobus stop. The Metro Transit Police Department is the only American police agency that has local police authority in three different "state"‐level jurisdictions. The WMATA has taken 9/11 and events in European train services very seriously. In the Metrorail system, fire protection systems are built into rail cars, stations and other fire‐sensitive areas in case of an explosion or fire. Fire extinguishers are located on all Metrorail trains and seat cushions and carpets on all Metrorail cars are constructed with fire retardant materials. Metro's ventilation system in its stations and tunnels are designed to pull smoke out of stations when activated so that customers, employees and first responders can exit safely and quickly. Closed circuit video cameras cover every area of a Metrorail station. Ordnance Disposal (EOD) unit‐related equipment to be purchased includes a special radio frequency to be used by the Metro Transit Police Department’s EOD robot; an external surveillance camera for the EOD on‐scene command vehicle; a special computer monitor for the truck’s surveillance camera; two portable x‐ray kits and film; an explosive storage magazine in which suspected explosive‐laden packages are stored; six sets of ballistic helmets and shields; four fiber optic snake cameras; six EOD unit suits and vests; a police radio with interagency digital/analog communication capability; and two chemical weapons identifiers used to identify unknown substances. ii. Metropolitan Washington Airports Authority: The Airports Authority operates a two‐airport system that provides domestic and international air service for the mid‐Atlantic region. The organization consists of more than 1,300 employees in a structure that includes central administration, airports management and operations, and police and fire departments. In addition to operating Reagan National and Dulles, the Airports Authority is responsible for capital improvements at both airports. The Airports Authority is not taxpayer‐funded but is self‐supporting, using aircraft landing fees, rents and revenues from concessions to fund operating expenses. Its Office of Public Safety is committed to providing a safe and secure environment to the Metropolitan Washington airports community through organized response to emergency situations and proactive education and prevention activities. Public Safety provides a broad range of programs to protect the airports community from the adverse effects
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Renew America of crime, fire, sudden medical emergency or exposure to dangerous conditions. The Authority has decided that Reagan National should have bomb resistant trash receptacles while Dulles will continue to install standard bins. 1. Dulles International Airport: a. Trash Bins: Dulles’ maintenance staff empties airport approved receptacles. There is currently no recycling at the Airport. In 2007, the Airports Authority put out a Request for Quotaion (RFQ) for 50 floor standing large capacity waste receptacles for Washington Dulles International Airport. The waste receptacles should have pertinent salient characteristics that meet or exceed those of a Bobrick B‐2400 trash receptacle. Specifications expressly limited to 32 inches in height, utilizing a 33 gallon capacity with a galvanized‐steel waste container. Only Local Disadvantaged Business Enterprises were allowed to compete for this contract (See Appendix XXX1 ‐ RFQ 1‐07‐P285. In 2004, Mistral publically stated that they installed BlastGuard containers in Dulles. b. Advertising Opportunity: Dulles International Airport serves the eighth largest DMA in the US. It is part of the fastest growing air market in the US that boasts over 51.4 million annual passengers. Dulles is one of the world’s fastest growing airports; passenger traffic increased 56 percent from 1996 to 2000. In 2004, passenger traffic at Dulles International went up by 26 percent over 2003. Dulles International Airport services the millions of annual tourists who visit the nation’s capital as well as key players in the political and high‐tech arenas. Dulles International Airport offers non‐stop daily service to 72 US cities. 53 percent of the adults in the Washington D.C. DMA traveled by air in the past year and 52 percent of them departed from Dulles International Airport. c. Security: The TSA, a component of the Department of Homeland Security that is responsible for security of the nation's transportation systems, is the primary provider of security at Dulles. TSA is supported by other local and federal agencies. 2. Washington Reagan: a. Trash Bins: Reagan’s maintenance staff empties airport approved receptacles. There is currently no recycling at the Airport. In December 2006, the Airports Authority put out a RFQ for 50 bomb mitigation trash receptacle inserts and 100 bomb mitigation trash receptacle lids. The inserts needed to fit existing shells that were purchased in 1996. This meant that the
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Renew America inserts would have to be shorter than 30 ¾ inches, have a maximum diameter of 18 ½ inches and hold a 32 to 40 gallon bag. The mitigation efficiency level was set at 4.4 pound of TNT. The RFQ was open to any business, but disadvantaged business would receive preferential treatment (see Appendix XXX2: RFQ 1‐06‐P265). Mistral, MCA Construction (a construction company that lists no relation to trash bins) and Total Security US responded to the RFQ. There was no further publicly available information on this RFQ. b. Advertising Opportunity: Ronald Reagan Washington National Airport serves the eighth largest DMA in the US. It is part of the fastest growing air market in the US that boasts over 51.4 million annual passengers. Reagan National Airport is downtown Washington D.C.'s closest and most convenient airport. It specifically caters its many services to key players in the political arena and to the business clientele of the many Fortune 500 companies located in the region. 51 percent of the adults in the Washington D.C. DMA traveled by air in the past year and 47 percent of them departed from Reagan National Airport. 61 percent were business passengers. c. Security: The TSA, a component of the Department of Homeland Security that is responsible for security of the nation's transportation systems, is the primary provider of security at Reagan National. TSA is supported by other local and federal agencies. 2. Regulatory environment: a. 2006 ICC Family of Codes: The 2006 ICC Family of Codes sets specific limitations on new signage for building construction (not streetscape). b. Downtown Streetscape Regulations: District Department of Transportation has implemented regulations that could prohibit Renew’s deployment in the Downtown BID c. The Old Georgetown Act: The Old Georgetown Act (Public Law 81‐808) was passed on 22 September 1950. The Act defined the boundaries of Georgetown, and officially designated the area a historic district. The Old Georgetown Act also gave the Commission of Fine Arts the authority to appoint an advisory committee, the Old Georgetown Board, to conduct design reviews of semipublic and private structures within Georgetown's boundaries. The Board is comprised of three architects who serve without compensation for three‐year terms. Their recommendations for concept and permit applications are compiled into the Old Georgetown Appendix and forwarded to the Commission of Fine Arts for final approval. 3. Municipal or other Governmental contracting bodies: a. District Department of Transportation: The District of Columbia government's Department of Transportation's (DDOT) mission is to enhance the quality of life for
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Renew America District residents and visitors by ensuring that people, goods, and information move efficiently and safely, with minimal adverse impacts on residents and the environment. The DDOT Plans, designs, constructs, and maintains the District's streets, alleys, sidewalks, bridges, traffic signals, and street lights. The DDOT Manages and makes improvements to the street system to facilitate traffic flow through the District of Columbia. The DDOT Manages, with the Department of Public Works, the removal of snow and ice from the streets. The DDOT also Coordinates the District's mass transit services, including the reduced‐fare program for students using MetroBus and MetroRail. i. Public Space Committee: The District Department of Transportation has management and oversight responsibility for the use and occupancy of the public space. The goal of Public Space Management is to achieve and maintain safe and beautiful streets. Public Space is defined as all the publicly owned property between the property lines on a street and includes, but is not limited to, the roadway, tree spaces, sidewalks and alleys. The Public Space Committee meets monthly to review a variety of types of permit applications for the use and occupancy of the public rights‐of‐way including: sidewalk cafes; retaining walls; over height fences; and security bollards. The committee has approval authority for trash receptacles and all other street furniture. The committee has already studied ‘trash receptacles (with) custom designed plaques or decals, providing local business an opportunity to advertise’ in business corridor areas and adding public recycling receptacles. b. Advocacy Neighbourhood Committees: Advocacy Neighbourhood Committees (ANCs) are advisory boards providing official citizen representation to other governmental bodies. The commissioners consider a wide range of policies and programs affecting their neighborhoods. These include traffic, parking, recreation, street improvements, liquor licenses, zoning, economic development, police protection, sanitation and trash collection, and the District's annual budget. The BIDs work with ANCs (when there is a corresponding ANC) to discuss changes to the public space. The ANCs easily accepted the Georgetown Bike Rack program. The ANC's reports to the Old Georgetown Board are often barometers of neighborhood reaction to building proposals in densely populated areas, so it is advisable for property owners considering a building project to inform neighbors and ANC commissioners of their intentions well before applying to the city for a building application. c. US Commission of Fine Arts: Within the District of Columbia community, the US Commission of Fine Arts (CFA) advises on design matters affecting the Historic District of Georgetown, under the Old Georgetown Act, as well as other private sector areas adjacent to federal interests, under the Shipstead‐Luce Act. 4. Key persons within the municipal or other governmental contracting body: a. Juanita M Crabb, Executive Director, Georgetown BID. b. Kathryn Park: Communications Manager, Georgetown BID. c. Ed Solomon, Chair, ANC 2E (Georgetown).
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Renew America d. Richard H. Bradley, Executive Director, Downtown BID. e. Richard T Reinhard, Deputy Executive Director, Downtown BID, Planning and Development. f. Karen M. Sibert, Director of Marketing and Communications, Downtown BID. g. Anna Standard, Safety and Hospitality Manager, Downtown BID. h. Ronald E. Jones, Maintenance Services Manger, Downtown BID i. Lito Tongson, Streetscape Manager, Downtown BID. j. Leona Agouridis, Executive Director, Golden Triangle BID. k. Katherine Kelly, Capital Projects and Planning Manager, Golden Triangle BID. l. Alice Kelly, DDOT Public Space Policy Branch. m. Ken Laden, Associate Director, DDOT Transportation Policy and Planning Administration: Position worked with SubMedia. n. Sara Wilson, Assistant General, DCMATA Corporate Strategy and Communication. o. Polly Hanson, Assistant General, DCMATA Safety, Security and Emergency Management. 5. Current Contracts: a. Holders: i. Clear Channel Adshel: In 2005, Clear Channel Adshel signed a bus shelter agreement with the DC DDOT. ii. CBS Outdoor: CBS Outdoor has a limited advertising agreement with the WMATA for the MetroRail. iii. SubMedia: After three years of negotiation, SubMedia signed the WMATA’s Metro to a limited tunnel advertising program in 2006. iv. JCDecaux: JCDecaux has a comprehensive advertising agreement with Airports Authority. v. BlastGard: In 2004, BlastGard won a contract with the WMATA to install explosion‐mitigating trash receptacles. vi. Mistral Security: In 2002, Mistral Security won a contract with the WMATA to install explosion‐mitigating trash receptacles. Since sometime before 2004, Mistral has supplied the Metropolitan Washington Airports Authority with explosion‐mitigating trash receptacles. vii. TotalSecurity US: In 2007, TotalSecurity US provided bomb mitigation trash receptacle inserts to the Metropolitan Washington Airports Authority. b. Terms: i. Clear Channel: Clear Channel Adshel has an exclusive agreement for all Washington DC bus shelters. The 20 year agreement calls for design, construction, installation and maintenance. The agreement gives Clear Channel Adshel the right to a Bike rental program. 10 percent of the total advertising space must be made available for public service advertising. No more than 37 percent of advertising can be alcohol related. This has geographical restrictions as well. Clear Channel Adshel paid and will pay two lump sum bonuses to the DDOT of $ 24 million and $ 25 million respectively. MAGs range from to $ 2 to $ 9 million and revenue share grows from 30 to 35 percent over the life of the
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ii.
iii.
iv.
v.
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vii.
agreement. Clear Channel Adshel is also offering Washington DC PIK advertising. CBS Outdoor: CBS provides Bus wraps, Bus exterior and interiors, platform posters, car cards, and station domination for the MetroRail. CBS Outdoor is free to negotiate quantity discounts at their discretion. The MAG for 2008 is $3 5 million. In 2007, CBS negotiated a significant increase to the total inventory. This increase gave CBS Outdoor the right to sell advertising on ‘trash receptacles’ in the Metro Rail system; among other non‐traditional place. SubMedia: SubMedia has two tunnel advertisements in the Red Line tunnels between Metro Center and Gallery Pl‐Chinatown stations and Gallery Pl‐ Chinatown and Judiciary Sq stations; the two busiest stations on the DC Metro. The advertisements are seen by nearly 4.9 million commuters per month. SubMedia will install at least four animated ads in the next three years. The system is expecting average MAGs of $800,000. The deal has two 12 month renewal options. JCDecaux: JCDecaux has an advertising agreement with Airports Authority. At Dulles, they operate dioramas, exhibit space, free standing panels, scrolling panels, spectaculars, wraps and take‐one dispensers. At Reagan, they operate courtesy phone centers, dioramas, exhibit space, free standing panels, scrolling panels, wraps and take‐one dispensers. BlastGard: To date the WMATA has ordered 208 explosion‐mitigating trash receptacles for use on Metro platforms. The total cost of the purchase was $ 797,000. The purchase was in response to a DHS directive issued after the 2004 attacks on the Spanish rail system. DC Metro was the first rail service to respond to the directive. The containers are lined with BlastWrap. Mistral Security: In 2002, Mistral Security installed its BlastGuard containers near subway entrance. The contract was approximately $ 1 million. A second solicitation in 2002 for more bomb resistant trash bins was cancelled. It is unclear where, but Mistral has supplied the Metropolitan Washington Airports Authority with explosion‐mitigating trash receptacles. Mistral bins cost approximately $ 2,000. TotalSecurity US: TotalSecurity US provided bomb mitigation trash receptacle inserts to the Metropolitan Washington Airports Authority for deployment in Reagan National.
6. Conclusion: a. Market for Renew: Washington DC has specific areas where residents and employees are affluent. Tourism is a major portion of the population and the city is pedestrian friendly. Most importantly, a premium is set for security and anti‐terrorism devices are welcomed. b. Legal Constraints: The Downtown BID ‘s Downtown Streetscape Regulations, set by the Department of Transportation, may prohibit Renew unless changed. Due to the layered
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Renew America nature of Washington DC’s bureaucracy, Renew will need legal advice to move forward. Otherwise, the field for Renew is legally open. c. Urban Deployment: Like New York, working the strong BIDs, Renew can focus its geographical scope while allowing local officials to champion the project through City bureaucracy. Washington DC BIDs perform both trash removal and security for their neighborhood at the local level. They have the most to gain. In order to win approval, the BIDs will have to take the project to the Department of Transportation. The Department of Transportation will have to take Renew to the Advocacy Neighbourhood Committees. Passage of the Advocacy Neighbourhood Committees should inure any other historical preservation blocks. Based on common operating experience, it is likely that the BIDs will seek MAG, a percent of revenues and ad space, and label the program a pilot program. The bargaining position of the Washington DC BIDs will be weaker than New York. d. Transit Deployment: The WMATA is a loss making institution that has a history of using advertising inventory to shore up losses. In order to avoid current contractual constraints and high advertising benchmarks, Renew should leverage its bomb resistant qualities. Here, the WMATA has already installed like bins in the Metro Rail system. i. In 2007, CBS negotiated a significant increase to the total inventory. This increase gave CBS Outdoor the right to sell advertising on ‘trash receptacles’ in the Metro Rail system. e. Next Steps: i. Win interest in the BIDs, with a particular focus on the Georgetown BID and the Golden Triangle BID (due to their demographics and history). Do this through focusing on the level of investment and the gains for the neighbourhood – security, emergency and public information distribution. ii. Create a benefit for the Department of Transpiration. iii. WMATA may benefit by placing Renew in the Metro Rail system and moving the current bins to outer areas of the network like bus shelters. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. iv. Seek legal advice on contracting with Washington DC.
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MIAMI BEACH
Renew America
Miami Beach
PART VI
1. Large Single Market Opportunities: Miami Beach offers a focused opportunity to capitalize on an affluent community and influx of tourism is a small geographical area. a. City of Miami Beach: The City of Miami Beach was incorporated in 1915. Miami Beach has been one of America's pre‐eminent beach resorts for almost a century. The City is often referred to under the umbrella term of "Miami," despite being a distinct municipality, making Miami and Miami Beach two separate cities. In 1979 Miami Beach's Art Deco Historic District was listed on the National Register of Historic Places. Miami Beach is governed by a Mayor and 6 Commissioners. South Beach is one of the more popular areas of Miami Beach. Today, it is considered one of the richest commercial areas on the beach, yet poverty and crime still remain in some places near the area. i. Trash Bins: The Department of Sanitation maintains the city’s trash receptacles. There is no recycling in the Public Domain in the City of Miami Beach. Public domain trash bins are subject to car collision and vandalism by the homeless in Miami Beach. ii. Advertising Opportunity: As of the 2000 census, the city had a total population of 87,933. 55.5 percent of the population was foreign born. South Beach is the section of Miami Beach, Florida that encompasses the southernmost 23 blocks of an island separating the Atlantic Ocean and Biscayne Bay (See Appendix XXXII‐ South Beach Miami Map). Today, the South Beach section of Miami Beach is a major entertainment destination with hundreds of nightclubs, restaurants and oceanfront hotels. The area is popular with both American and international tourists, with German being the third most spoken language after English and Spanish. The large number of European tourists explains South Beach's tolerance of topless sunbathing, despite being a public beach. Although mostly residential, the area is also home to several large scale development projects and large buildings such as Portofino Tower and sister buildings such as ICON (spearheaded by designer Philippe Starck), Continuum, and Murano at Portofino. This area has several notable nightlife destinations, including Opium Garden, Privé, Nikki Beach Club, and Pearl. It also has several smaller, upscale bars and restaurants, including Joe's Stone Crabs, Smith & Wollensky's steak house, and China Grill. South Beach is one of the world's foremost locations for fashion shoots, making the Miami area the model shoot capital of the United States. Approximately 1,500 models live in the area, with many more arriving during the prime fashion shooting season, running from October to March. 1. Ocean Drive: Ocean Drive is the easternmost street in South Beach, and stems from south of First to 15th Street, running in a north‐south direction. Ocean Drive is responsible for the South Beach aesthetic that most out‐of‐town visitors expect. It is a popular Spring Break and tourist
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Renew America area, including the famous, yet predominantly local, Pearl and Nikki Beach night spots. It is also home to several prominent restaurants (including "News Cafe," "Mango's," and the MTV‐popularized "Clevelander") and is the site of Gianni Versace's former ocean front mansion. Because of its great value as a place for people watching, it is heavily cruised and parking is hard to find. 2. Lincoln Road: Lincoln Road is an open‐air pedestrian mall, considered South Beach's premiere shopping area. It is home to many restaurants and several night clubs, such as Score and Funktion, as well as many retail outlets. While Lincoln Road was one time rather downtrodden, with its unique boutique shops and restaurants, since the 1960s it has had "an esoteric chic that maintains its trendy appeal." (ref. Ocean Drive Magazine) It is located in between 16th Street and 17th Street and spans the beach in an east‐west direction. Among the late 1990s restaurants on Lincoln Road was one owned by actor Michael Caine, and managed by one of his daughters. 3. Collins Avenue: Collins Avenue runs parallel to Ocean, one block west. It is also State Road A1A. Collins is home to many historic Art Deco hotels, and several nightclubs to the north, including Mynt and Rokbar. 4. Washington Avenue: Washington Avenue is one of the best‐known streets in South Beach. Running parallel with Ocean and Collins, WashinMiamigton is notorious for having some of the world's largest and most popular nightclubs, such as Crobar and Mansion. During "season" (October 15 to May 15th) the street is jammed with traffic until early in the morning (as late as 6 am) every night of the week 5. Jackie Gleason Theater and Convention Center: Within a short walk from the other areas, significant investment has made these venues an important part of Miami Beach. iii. Security: Miami Beach’s Fire/Rescue, Police and Ocean Rescues’ diverse force offer services as a unified organization with a goal of providing the highest level of professional public service to the community and its visitors. The City of Miami Beach has become a part of a national network of CERT communities. The program is designed to help neighborhoods prepare for and respond after catastrophic disasters such as hurricanes, tornadoes, and other major emergencies. Volunteers are trained in basic disaster survival and rescue skills that improve the ability of citizens to survive until responders or other assistance arrives. b. Transportation Hubs: i. Miami International Airport: Miami International Airport (MIA) is a public airport located eight miles northwest of the central business district of Miami, in unincorporated Miami‐Dade County. The airport is a hub for passenger airlines American Airlines, American Eagle, and Executive Air; cargo airlines Arrow Air,
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Renew America Fine Air, UPS and Federal Express; and charter airline Miami Air. Miami is the premier gateway between the US and Latin America, and, along with Atlanta's Hartsfield‐Jackson Airport, Miami is one of the largest aerial gateways into the American South, owing to its proximity to tourist attractions, local economic growth, large local Latin American and European populations, and strategic location to handle connecting traffic between North America, Latin America, and Europe. In the past, it has been a hub for Eastern Air Lines, Air Florida, the original National Airlines, the original Pan Am, and Iberia. 1. Trash Bins: MIA’s maintenance staff empties airport approved receptacles. There is currently no recycling at the Airport. 2. Advertising Opportunity: As an international gateway to the United States it ranks third, behind New York‐JFK in New York City and LAX in Los Angeles. In 2006, 32,533,974 passengers traveled through the airport, the highest number since 9/11. MIA is currently offering its 320 advertising locations. Submissions due on January 8th 2008 (See Appendix X ‐ MIA RFP). 3. Security: The TSA, a component of the Department of Homeland Security that is responsible for security of the nation's transportation systems, is the primary provider of security at MIA. TSA is supported by other local and federal agencies. c. Other Areas: There is a financial District in Miami (governed by Miami Dade County). Brickell is a neighborhood of Downtown Miami. It lies south of the Miami River, extending south to SE 26th Road (the Rickenbacker Causeway). Brickell is split into two subdivisions by Broadway, Upper Brickell and Lower Brickell. Upper Brickell is home to Miami and Miami‐Dade County's financial district as well as the site of many new high‐ rise luxury condominium developments and office towers that constantly redefine the Miami skyline. Referred to as the "Manhattan of Miami", Upper Brickell is home to the largest concentration of international banks in the United States, mostly along Brickell Avenue. Most of these banks are small in size and assets. This area represents a Latin American financial hub. Although the area is quite concentrated, pedestrian traffic is limited due to weather and availability of parking. 2. Regulatory environment: a. Miami Beach City Code: City of Miami Beach Wayfinding & Signage Program regulates outdoor advertising location and substance (See Appendix XXXIV – Miami Beach Advertising Codes). The codes also give the City latitude when installing street furniture. b. The City’s Historical Preservation group is urging that all new public domain installations are white in colour. 3. Municipal or other Governmental contracting bodies: a. The Public Works Department: The Public Works Department includes the Administration, Engineering, Transportation/ Concurrency Management, Construction/Financial Management, Streets and Streetlights, Environmental Resources
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Renew America Management, and Community Resource Management Divisions in the General Fund, and the Water, Sewer and Storm Water Divisions in the Enterprise Funds. b. Sanitation Division: The Sanitation Division is responsible for the collection and disposal of residential garbage, trash and refuse generated at municipal buildings; the residential recycling program; sanitation inspections; street sweeping on public right‐of‐ways and collection and disposal of litter from public litter bins. Collection and disposal services for residential garbage, as well as residential recycling, are provided by a private hauler on contract to the City. Mobile and manual street sweeping and litter control programs are provided by the City c. The Planning Department: The Planning Department prepares, updates and maintains neighborhood and Citywide plans and technical data for the City pursuant to Florida Statues. This division is further divided into four distinct sections: planning, zoning, design and historic preservation. d. Miami Design Preservation League: Miami Design Preservation League (MDPL) is a non‐ profit organization devoted to preserving, protecting, and promoting the cultural, social, economic, environmental, and architectural integrity of the Miami Beach Architectural Historic District and all other areas of the City of Miami Beach where historic preservation is a concern. MDPL was originally organized by Barbara Capitman in 1976 and is the oldest Art Deco Society in the world 4. Key persons within the municipal or other governmental contracting body: a. Al Zamora, Director, Sanitation Division, Miami Beach. b. Robert Middaugh, Assistant City Manager, Miami Beach. c. Fred Beckman, Director, Public Works. d. Bill Farkas, Executive Director, Preservation League. 5. Current Contracts: a. Holders: i. Clear Channel: In 2000, Clear Channel Adshel signed a limited Street Furniture agreement with Miami Beach. ii. JCDecaux: Since 1994, JCDecaux has held a limited agreement to provide advertising for MIA. b. Terms: i. Clear Channel: Clear Channel’s street furniture contract calls for bus shelters and other street fixtures. ii. JCDecaux: JCDecaux’s agreement to cover 320 advertising locations came with current $ 1.4 million MAG. 6. Conclusion: t. Market for Renew: Miami Beach is not a large opportunity for RE;NEW, but the areas in South Beach represent a focused opportunity. The area is known for affluent tourism and has a high evening footfall. Emergency information networks are extremely important for Miami Beach due to frequency of tropical storms and the geography.
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Renew America u. Legal Constraints: There are not significant legal constraints to Renew in Miami Beach. There are some layers associated with doing business with Miami Beach, but overall the government is small. v. Urban Deployment: By working through the Department of Sanitation, Renew would allow this mundane department to champion the project through City bureaucracy. The Department is seeking to improve the trash bins and is under pressure to clean‐up Miami Beach by the new Mayor. The Miami Design Preservation League will have limited say, but may suggest a white color. The city may seek a percent of revenues and ad space. Their need to disseminate tropical storm information to an ambivalent tourist population will be a motivating factor. w. Next Steps: v. Win interest in the Sanitation Department. Do this through focusing on the excitement of the project, level of investment and the gains for the neighbourhood – security, emergency and public information distribution.
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LAS VEGAS
Renew America
Las Vegas (Paradise)
PART VII
1. Large Single Market Opportunities: Las Vegas growth and demographic shift have created opportunities for Renew. The particular focus on security and the massive flow of tourists make the ‘Strip’ and the logistical infrastructure that supports it a market opportunity. a. The Las Vegas Strip: The Las Vegas Strip (the Strip) is a four mile section of Las Vegas Boulevard South (See Appendix XXXV ‐ Las Vegas Strip Map). Only part of the Strip is located within the city limits of Las Vegas; the section north of Sahara Avenue. The more valuable portion of the Strip is in Clark County’s unincorporated Township of Paradise, Nevada. As an unincorporated part of Clark County, it is governed by the Clark County Commission. i. Trash Bins: The land on the strip is owned by the county. Small trash receptacles are services through an outsourced contract with Republic Services, a national waste management company. ii. Advertising Opportunity: Many of the largest hotel, casino and resort properties in the world are located on the Strip. Several Strip hotels have undertaken efforts to make the street more pedestrian‐friendly. New casinos design their façades to attract walk‐up customers, and many of these entrances have become attractions themselves ‐ the Fountains at Bellagio, the volcano at The Mirage, and the Treasure Island (TI) Sirens of TI are the most well‐known. People gather on the sidewalks in front of the casinos to watch these shows. To alleviate traffic issues at popular intersections, several footbridges have been installed to help pedestrians safely traverse the roads. The Tropicana ‐ Las Vegas Boulevard footbridges were the first to be installed, and based on the success of this project additional footbridges have been built on Las Vegas Boulevard at the Flamingo Road intersection; between The Mirage/Treasure Island and The Venetian; and the latest ones at the Las Vegas Boulevard‐Spring Mountain and Sands Avenue intersection connecting the Wynn with the Fashion Show Mall. Four/Five Star hotels and the Fashion Show Mall would also present opportunities. iii. Security: Security on the Strip has always been a focus of private and public efforts due to the concentration of tourism and the nature of Las Vegas. Since 9/11, it has been widely publicised that the Strip has been a target of Al‐Qaida. The Las Vegas Metropolitan Police Department has jurisdiction over the Strip. Resources that facilitate and support the response to emergencies around the Strip are coordinated by the Clark County Office of Emergency Management. These local agencies work with private security and federal Agencies to protect against criminal and terrorist threats. b. Transportation Hubs: i. McCarran Airport: McCarran Airport (LAS) is the principal commercial airport serving Las Vegas and Clark County, Nevada. The airport is located five miles
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Renew America south of the central business district of Las Vegas, in the unincorporated town of Paradise. It covers an area of 2,800 acres and has four runways. McCarran is owned by Clark County and operated by the Clark County Department of Aviation. Clark County Department of Aviation is a part of the Clark County, Nevada government. McCarran and the five general aviation facilities in the Clark County Airport System are owned by Clark County and operated under the policy direction of the Board of County Commissioners, the authority of the County Manager and the management of the Director and Deputy Director of Aviation. As the airport continues through the process of upgrading and expanding there is a list of projects due to be completed before 2011. The new $ 1.6 billion Terminal 3 will be built in one phase. Its planned opening in early‐ 2011 would provide 14 additional gates, including six designated for international travelers. Once it opens, McCarran will have 117 gates. Like terminal 2, it will be all inclusive providing bag claim, ticketing and parking facilities. A plan to extend the Las Vegas Monorail to McCarran is under consideration. 1. Trash Bins: LAS’ maintenance staff empties airport approved receptacles. There is currently no recycling at the Airport. 2. Advertising Opportunity: In 2006, McCarran ranked eleventh in the world and sixth in the United States for passenger traffic, with 46,194,882 passengers passing through the terminal. The Department of Aviation, through its creative advertising program, offers advertisers a package of quality options at McCarran International Airport. These include strikingly clear static displays, high‐resolution video, and an assortment of strategically located billboards along the major airport roadways. 3. Security: The TSA, a component of the Department of Homeland Security that is responsible for security of the nation's transportation systems, is the primary provider of security at LAS. TSA is supported by other local and federal agencies. ii. The Robert N. Broadbent Las Vegas Monorail: The Robert N. Broadbent Las Vegas Monorail is a mass transit system located in Las Vegas. It is owned and operated by the Las Vegas Monorail Company. For tax purposes, the Monorail is registered as a charity, which is allowed under Nevada law since the Monorail provides a public service. The state of Nevada assisted in bond financing, but otherwise no public money was used in construction, and no future taxpayer obligation will be incurred. In 2005, after nearly ten years of problems and shutdowns, the Las Vegas Monorail Company took over responsibility for operations from the now defunct Transit Systems Management. Since the shift, operations and usage has improved drastically. While projects to extend the monorail to downtown have largely failed, Clark County Board of Commissioners at its December 6, 2006 zoning meeting approved a 75‐year
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Renew America franchise agreement and land use permit to extend the Monorail to McCarran International Airport. This is the longest franchise term ever awarded by Clark County. 1. Advertising Opportunity: The Las Vegas Monorail reaches between a half million and a million visitors a month, depending on visitor volume and city activities. The system is approximately four miles long, has nine trains and seven stations: MGM Grand; Bally’s/Paris Las Vegas; Flamingo/Caesars Palace; Harrah’s Las Vegas/Imperial Palace; Las Vegas Convention Center; Las Vegas Hilton; and the Sahara. 97 percent of riders are visitors to Las Vegas. 65 percent of riders stay in a property located on the east side of the Strip; 31 percent stay in a property on the west side of the Strip. Roughly 60 percent of riders have a household income of at least $ 50,000 a year; nearly 37 percent have a household income over $ 80,000. At least 50 percent of riders have at least a bachelor’s degree. Mean age of 44 years old vs. 48 years old for the general Las Vegas visitor. 2. Regulatory environment: a. Outdoor advertising is regulated, but legal advertising is highly encouraged. 3. Municipal or other Governmental contracting bodies: a. The County Department of Public Works: The Department of Public Works is responsible for the operations, repair, and maintenance of County roadways, curbs, gutters, sidewalks, shoulders, and roadside drainage. The department administers both the Clark County news rack and obstructive use ordinance under Title 16. This includes the annual permitting of news rack operators in the resort corridor, determining allowable news rack locations, and enforcing the requirements of the Title with regard to size, condition, etc. of permitted news racks. Additionally, Public Works coordinates with the Las Vegas Metropolitan Police Department to enforce other relevant statutes that may apply to non‐permitted or "rogue" operators in the resort corridor. b. Clark County Franchise Services: The mission of Clark County Franchise Services is to professionally administer the County's franchise programs in an open, collaborative manner, protecting the people's interests and enhancing their welfare, while allowing competitive and innovative use of the public rights‐of‐way c. Office of Emergency Management: Resources that facilitate and support the response to emergencies around the Strip are coordinated by the Clark County Office of Emergency Management. The office has developed an Emergency Operations Plan, Hazard Mitigation Plan, a Hazardous Materials Emergency Response Plan and a Mass casualty Plan. d. Las Vegas Metropolitan Police Department, Homeland Security Division: The Las Vegas Metropolitan Police Department created its Homeland Security Division comprised of the newly created and staffed Homeland Security Bureau along with the existing Vice and Narcotics Bureau. The Division created a counter‐terrorism section to compliment its existing criminal intelligence section, technical and surveillance section, and special
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Renew America investigations section; in an all encompassing evaluation of community wide sources of information in the war against terrorism. The Homeland Security Bureau expanded and enhanced its capacity to more accurately define and mitigate emerging events with the creation of an all‐hazard ARMOR response unit and our emergency management section. e. Southern Nevada Joint Terrorism Task Force: The FBI, in conjunction with the Department of Homeland security, ICE, TSA, the Secret Service and The Las Vegas Metropolitan Police Department have formed the Southern Nevada Joint Terrorism Task Force to work together in combating terrorism risk in the area. This interagency composition fosters cooperation, enhances the intelligence base, affords training opportunities to task force members, provides overtime funds for state and local participants and provides timely information to the public and private sector. f. TABs and CACs: To assist the Board of County Commissioners in an advisory capacity with decision making in supplying public services to the unincorporated areas of Clark County, Town Advisory Boards (TABs) and Citizens Advisory Boards (CACs) were created. The Boards are manned by local residence for two year terms and the work is not compensated. 4. Key persons within the municipal or other governmental contracting body: a. Denis Cederburg, Director, Public Works. b. Viki Callahan, Director, Construction Management, Public Works. c. Clark County Emergency Management Manager Jim O'Brien. d. Shauna Forsythe, President, Airport Alliance Advertising. e. Cam Walker, Head of Transit Systems Management. f. Ingrid Reisman, VP of Corporate Communications, Las Vegas Monorail. g. Angela Torres, Media, Las Vegas Monorail. h. Chris (f) Giunchigliani, County Commissioner for District E (the Strip). i. Kathey Suey, Las Vegas Metropolitan Police Department, Homeland Security Division. j. Deputy Chief Mike McClary, Las Vegas Metropolitan Police Department, Homeland Security Division Commander. 5. Current Contracts: i. Holders: 1. McCarran Airport: a. Alliance Airport Advertising controls indoor advertising. b. VidAd, a subsidiary of MGM Mirage, owns and controls three large audio visual displays in the baggage claim area. c. The Airport owns 41 outdoor advertising sites. 2. The Robert N. Broadbent Las Vegas Monorail: a. Clear Channel Taxi Media, a division of Clear Channel Outdoor. b. Morris Publications. c. Monster Media, projection advertising. ii. Terms:
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Renew America 1. McCarran Airport: Airport Alliance Advertising’s contract with the airport seems to confer exclusive rights to new advertising. In April of 2007, Airport Alliance Advertising gave access to Monster Media for limited usage of wall space for projection advertising. Each ‘sign cost Monster Media $ 12,000 per month, well above the average $3,000 a month for a static sign inside of the airport. In 2006, Alliance Airport Advertising reported that they earned $ 13.5 million for advertising inside of the airport. According to their deal, 85 percent of these revenues go to the Aviation Department. VidAd usage is coordinated through MGM Mirage Design Center. Each outdoor advertising site has a separate agreement with one of five major billboard companies. 2. The Robert N. Broadbent Las Vegas Monorail: The Las Vegas Monorail generates revenue not only from ticketed passengers, but also from corporate sponsors. Branding rights for the seven stations and the nine trains are available, and the sponsorship prices are in the millions. Hansens Beverage sponsored the first monorail train, featuring its Monster Energy Drink. Nextel Communications created a totally themed pavilion by branding the largest station, adjacent to the Las Vegas Convention Center. Since the Sprint‐Nextel Merger in late 2005, Nextel Central has been rebranded as Sprint Central. All stations in the system are available for branding by companies and groups. By selling branding rights for the stations, the system earns additional income to limit the fares paid by passengers. a. As of October 2007, Clear Channel Taxi Media will be the sales conduit by which advertisers can reach potential customers through seven high‐traffic stations along the Strip, including: MGM Grand, Bally's/Paris Las Vegas, Flamingo/Caesars Palace, Harrah's Las Vegas/Imperial Palace, Las Vegas Convention Center, Las Vegas Hilton and Sahara, as well as nine train wraps and interior train car opportunities. Product sampling will also be available – a tactic that has proven to be an innovative and effective strategy in most major U.S. markets. b. Morris Publications represents the Las Vegas Monorail Company as its exclusive publisher with the Monorail Magazine and Where Quick Guide, Your Official Guide to the Las Vegas Monorail. c. Monster Media has installed ten advertising venues on the Las Vegas Monorail. The Monster Media advertising displays are 8’ x 12’ images that are projected on the floor of the platform level of each Monorail station, with additional advertising displays in front of Monorail ticket vending machines at two of the stations. While waiting for Monorail trains, riders interact
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Renew America with the projections to change the content of the ad, providing an exciting and entertaining experience for everyone. The displays are also equipped with SMS/instant messaging technology, thereby allowing consumers to receive promotional offers or special messages on their mobile phones while interacting with the advertisement. This contract cannot be renewed without approval of Clear Channel. Figure 23 – Monster Media Las Vegas Monorail Projection. Source: Las Vegas Monorail. 6. Conclusion: a. Market for Renew: The ‘Strip’ is an ideal environment for Renew. Modern, pro‐ advertising, densely populated and at risk. A premium is set for security and anti‐ terrorism devices are welcomed. b. Legal Constraints: No major legal constraints exist. The County government may present a challenge. c. Urban Deployment: In order to deploy onto the Strip, Renew will have to work with the County Department of Public Works. The Strip is technically located outside of the City of Las Vegas. d. Transit Deployment: Current transit agreements are exclusive. e. Next Steps: i. Win interest in the County government. Do this through focusing on the level of investment and the gains for the Strip – security, emergency and public information distribution. ii. Create a benefit for the Office of Emergency Management, with a focus on Renew’s emergency broadcast ability. iii. Study the possibility for Las Vegas to utilize Renew to become more ‘Green’.
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SAN FRANCISCO
Renew America
San Francisco
PART VIII
1. Large Single Market Opportunities: San Francisco is characterized by a high standard of living. The great wealth and opportunity generated by the Internet revolution drew many highly educated and high income workers and residents to San Francisco. Property values and household income have escalated to among the highest in the nation. It is also one of the most densely populated major cities in the U.S. This density, combined with temperate weather, makes San Francisco one of the more pedestrian oriented cities in the US. There are no BIDs in San Francisco. For the purposes of Renew, San Francisco can be segregated into one unique financial district and one unique shopping district. In addition, this study considers the Airport and the mass transit governing authority. Note that San Franciscans have enacted legation that is the toughest in the United States (for a large city) concerning increases in outdoor advertising. a. The Financial District: The Financial District is a neighborhood in San Francisco that serves as its main central business district. The area is marked by the cluster of high‐rise towers that lies between Grant Street east of the Union Square shopping district, Sacramento Street and Columbus Street, south of Chinatown and North Beach, and the Embarcadero that rings the waterfront. Montgomery Street ("Wall Street of the West") is the traditional heart of the district (See Appendix XX ‐ SF Fin District and Union Square Map). i. Trash Bins & Security: Recycling & Security services are provided by the City. Significant security in the district is provided by private business, and their security guards are members of Service Employees International Union Local 24/7. Recycling, which is coordinated by the Department of the Environment, is done by private citizens and business through a three coloured bin system. The system has not been established in the public space. ii. Advertising Opportunity: The District is home to the city's largest concentration of corporate headquarters, law firms, banks, savings & loans and other financial institutions, such as the corporate headquarters of VISA, Wells Fargo Bank, the Charles Schwab Corporation, McKesson Corporation, Barclays Global Investors, Gap, and the Union Bank of California among others. The headquarters of the 12th district of the United States Federal Reserve, and the Pacific Stock Exchange are located in the area as well. There are several shopping malls in the area including the Crocker Galleria, the Embarcadero Center, the Ferry Building, and the Rincon Center complex. It is also home to tall condominiums b. Union Square Shopping District: Union Square is the central shopping, hotel and theatre district in San Francisco. It also refers to the 2.6 acre park bordered by Geary, Powell, Post and Stockton Streets. The name Union Square is derived from once being a popular area for rallies and support for the Union Army during the Civil War. Today, this one‐ block park and nearby area, is the largest collection of large department stores, high‐ end boutiques, tourist shops and salons in the Western United States. Union Square is a
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Renew America major visitor draw and a cosmopolitan area in downtown San Francisco. Grand hotels and small inns, and repertory, off‐Broadway and single‐act theaters also contribute to the area's dynamic, 24‐hour character. i. Trash Bins & Security: Recycling & Security services are provided by the City. Recycling, which is coordinated by the Department of the Environment, is done by private citizens and business through a three coloured bin system. The system has not been established in the public space. ii. Advertising Opportunity: Union Square is the ceremonial "heart" of San Francisco, serving as the site of many public concerts, impromptu protests, speeches by visiting dignitaries, and the annual Christmas tree and Menorah. Union Square has also come to describe not only the immediate vicinity of the park but the general shopping, dining and theater sub‐districts within the surrounding blocks. Union Square has become a popular shopping destination. It boasts six major department stores: Macy's, Bloomingdale's, Barneys New York, Nordstrom, Saks Fifth Avenue, and Neiman Marcus. Union Square is also home to several high‐end boutiques like Louis Vuitton, Gucci, Dior, Chanel, Prada, Giorgio Armani, Marc Jacobs, and Hermes. Most of the high‐end shops are on Geary, Post and Sutter from Powell Street towards Market Street; Stockton Street and Grant Avenue. c. Transportation Hubs: i. San Francisco International Airport: San Francisco International Airport is a major international airport located 13 miles south of downtown San Francisco, adjacent to the cities of Millbrae and San Bruno in unincorporated San Mateo County. The airport has flights to destinations throughout the Americas and is a major gateway to Europe, Asia, and Australasia‐Oceania. San Francisco International Airport is the largest airport in the San Francisco Bay Area, and is the second busiest airport in the state of California. It is a major hub of United Airlines and is Virgin America's principal base of operations. The Airport Commission consists of five members appointed by the Mayor to four‐year terms. Originally part of the San Francisco Public Utilities Commission, the Airport Commission was established by City Charter in 1970. In accordance with the Charter, the Airport Commission is primarily a policy‐making body, establishing the policies by which the airport operates. The Commission is prohibited by Charter from involving itself in the day‐to‐day operation of the airport. That function is vested in the Airport Director. 1. Trash Bins: SFO’s maintenance staff empties airport approved receptacles. There is currently no recycling and the Airport is evaluating how to either employ differentiated bins or do on‐site separation. Their contractor must reach 75 percent off‐site recycling by the end of 2008. 2. Advertising Opportunity: Since 1984 it has been the policy of the Airport Commission to prohibit advertising in the terminal complex, the policy was established in order to maintain the esthetics of the terminal
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Renew America complex and the art and exhibition programs. In 2000, the Airport adjusted the Advertising Policy by adopting Resolution No. 00‐0035, allowing the Airport to pursue revenue opportunities associated with commercial advertising in specific areas of the terminal complex. With 2,797,900 monthly passengers, 7,834,122 monthly advertising impression, 15,757,801 annual business passengers and 8,354,364 annual international travelers, SFO chose Clear Channel as its advertising partner. 1. Security: The TSA, a component of the Department of Homeland Security that is responsible for security of the nation's transportation systems, is the primary provider of security at SFO. TSA is supported by other local and federal agencies. ii. The San Francisco Municipal Transportation Agency: The San Francisco Municipal Transportation Agency (SFMTA) is the body which oversees the San Francisco Municipal Railway as well as the Department of Parking and Traffic. The agency, which includes the Department of Parking and Traffic and the Parking Authority, is governed by a seven‐member Board of Directors appointed by the Mayor and confirmed by the Board of Supervisors. The San Francisco Municipal Railway, or Muni as it is commonly known, is the public transit system for the city and county of San Francisco. In 2000, it served 46.7 square miles with an operating budget of about $ 700 million. Muni is an integral part of public transit throughout the San Francisco Bay Area, operating 365 days a year and connecting with regional services such as Bay Area Rapid Transit (BART), SamTrans and AC Transit. Many weekday riders are commuters, as the daytime weekday population in San Francisco exceeds its normal residential population. 1. Trash Bins: The SFMTA has struggled with public space trash receptacles due to security concerns and vandalism. The SFMTA has a street cleaning detail that provides janitorial services. Some cleaning and receptacle maintenance is provided by outside contractors. In June 2004, a motion passed the SF MTA’s Citizens Advisory Council (CAC) recommending that the MTA explore the possibility of buying and installing explosive resistant trash receptacles for Metro Stations once appropriate technology is identified and approved, and funding is secured that does not adversely affect operations or maintenance. In June 2007, the MTA Executive Director and CEO Nathaniel P. Ford stated ‘the Agency would look into bomb resistant or transparent waste receptacles 2. Advertising Opportunity: In terms of ridership, Muni is the 7th largest transit agency in the United States. In 2006, ridership on all forms of transit totaled 210,848,310. 3. Security: The MTA Security department has aggressively worked to secure the system from crime and terrorism. The department has
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Renew America participated in the TSGP, installing CCTV and integrated sensors with Federal and State funds (See Appendix XXI – SFMTA TSGP). The Muni Security division deploys three bomb detection canines. To add to city police patrolling of the MTA, armed and unarmed security is provided through a contract with King Security Services. The SF MTA started the Transit Watch campaign which encourages everyone to help keep Muni safe by being aware of their surroundings and alert to activities, packages or situations that seem suspicious. 2. Regulatory environment: a. Proposition K: On November 6th, 2007, San Francisco voters approved of City Supervisor Jake McGoldrick’s Proposition K. Proposition K is harshly worded towards outdoor advertising and states “there shall be no increase in the number of general advertising signs on street furniture on the public right‐of‐way, including, but not limited to, transit shelters, kiosks, benches and newspaper racks, over the number authorized by City law and City contracts as of July 1, 2007.” This proposition was initiated to strengthen public resolve to ban outdoor advertising which was initiated with Proposition G (See Appendix XX1 – Proposition K). b. Proposition G: Proposition G, which was enacted the Planning Code on March 5th 2002, through a city wide ballot, disallows any new ‘general advertising’ sign in the City of San Francisco. Proposition G passed with over a 70 percent majority. If Renew is considered ‘general advertising’, then according to the Planning Department it would not be permitted in San Francisco (See Appendix XXIII: Relevant Portions of the Planning Code, City of San Francisco). c. Section 603: Section 603 of the Planning code allows for an exemption for street furniture deals with the Municipal Transportation Agency and the Department of Public Works. Street Furniture is referred to as ‘public service kiosks’ and the wording is specific. Section 603 was amended as recently as November 2006. 3. Municipal or other Governmental contracting bodies: a. Department of Public Works: The Department of Public Works provides services ranging from cleaning, repairing, and maintaining city streets and sewers, to greening the City’s urban landscape, to designing and managing construction of public facilities. The Department rregulates uses within the public rights of way. i. Bureau of Street Use and Mapping: The Bureau of Street‐use & Mapping's (BSM) mission is to protect and enhance the public right‐of‐way for all residents, visitors and workers by regulating its use through the issuance of permits and the enforcement of laws and by promoting the undergrounding of overhead utility wires; and to maintain the Official City Map. b. Department of the Environment: Department of the Environment's mission is to improve, enhance, and preserve the environment, and to promote San Francisco's long‐ term wellbeing by developing innovative, practical and wide‐ranging environmental programs in recycling, toxics reduction, environmental justice, energy efficiency, commute alternatives, and urban forest. The Department coordinates Recycling.
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Renew America c. San Francisco Planning Department: The Planning Department adopts and maintains a comprehensive, long‐term general plan for future improvement and development of the City. This Department manages the Planning code which governs outdoor advertisements. d. Department of Emergency Management: Within the Department of Emergency Management, the Division of Emergency Services works closely with emergency responders, community partners and residents to engage in comprehensive disaster planning for the City and County of San Francisco. The Division of Emergency Services develops, and maintains the Emergency Operations Plan for the City and County of San Francisco. In addition, in partnership with the ten Bay Area counties and the cities of Oakland and San Jose, the Division of Emergency Services helps coordinate regional emergency response planning. e. Art Commission: The San Francisco Arts Commission is the City agency that champions the arts in San Francisco. Its programs integrate the arts into all aspects of City life. The Commission was established by charter in 1932. The Commission has authority over street furniture design. 4. Key persons within the municipal or other governmental contracting body: a. Barbara Moy, Bureau Manager, Bureau of Street Use and Mapping. b. Robert Haley, Zero Waste Program, Zero Waste Program Manager. c. Laura Phillips, Executive Director, Department of Emergency Management. d. Bob Rhoades, Deputy Director for Business, SFO: Examines Airport Advertising Expansion. e. Kandace Bender, Deputy Director, Communications and Marketing, SFO. f. Nathaniel P. Ford, SF MTA Executive Director and CEO: Expressed interest in ‘bomb resistant’ trash bins. g. Antonio Parra, SF MTA Director of Security and Enforcement. h. Cesar Perez, SF MTA CAC Member: Motioned that the SF MTA explore the possibility of buying and installing explosive resistant trash receptacles. i. Steve Ferrario, SF MTA CAC Vice Chairman, mentioned that the SF MTA explore the possibility of buying and installing explosive resistant trash receptacles. j. Dwight S. Alexander, Commission President, Planning Commission. k. Christina Olague, Commission Vice‐President, Planning Commission. l. Kathrin Moore, SF Planning Department. m. Scott Sanchez, Planner, SF Planning Department: Sanchez pointed out that Renew would violate the Planning Code. 5. Current Contracts: a. Holders: i. JCDecaux: Since 1994, JCDecaux has had various street furniture agreements with the City of San Francisco for Kiosks, portable toilettes, and news paper boxes. ii. Clear Channel: Clear Channel has various street furniture agreements with the City of San Francisco for Kiosks, transit shelters, and news paper boxes. In 2006,
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Renew America Clear Channel extended an agreement with SFO to provide advertising. In 2007, Clear Channel won a comprehensive 15 year agreement with the SFMTA. iii. CBS Outdoor: CBS Outdoor has a limited contract with the SFMTA. b. Terms: i. JCDecaux: In 1994, JCD installed the first automatic toilets in the United States in San Francisco. JCDecaux gave 20 84‐square‐foot rest rooms, costing about $150,000 each, to the city in 1995 in exchange for the right to sell advertising space on 90 matching kiosks (70 of which are newsstands and 20 that display art). As of 2007, many of the newsstands, up to 3/4, are not open. There is a 25 cent entry fee. Terms were for 20 years. The program is operated at no cost to the City. In exchange for the toilets, the City allows the contractor to install public service/advertising kiosks on City sidewalks. Advertising revenue generated by the kiosks pays for the installation and maintenance of the toilets. In 2001, JCDecaux was able to alter the agreement and achieved five advertising kiosks for every new toilette installed (see Appendix XXIV ‐ 2001 JCD‐SP Kiosk Deal). San Francisco has since expanded its partnership ahead of schedule to include 30 additional toilets and 135 more kiosks. The City of San Jose is leasing similar toilets from JCD for $65,000 per year. The news paper box agreement has been successfully out challenged by some news paper companies. ii. Clear Channel: Clear Channel has Kiosks, transit shelters, and news paper boxes agreement with the City. Their deal with San Francisco for the bus shelters includes 150 advertising Kiosks and should last for 15 years. Clear Channel provides dioramas, mini‐spectaculars, spectaculars, other spectaculars, wall wraps, other wraps and floor exhibits in SFO. The minimum average guarantee is approximately $ 1.5 million. All advertising goes through the SFO Design Review Committee. Airport Advertising Lease No. 00‐0408 will expire in 2011. Clear Channel’s 15 year agreement with the SFMTA is a comprehensive street furniture agreement. In the agreement, Clear Channel has “the exclusive right to sell print advertising on transit shelters and kiosks, including on property under the jurisdiction of the Port.” The SFMTA has a $15 million MAG and 55 percent revenue share. (See Appendix XXV– SFMTA/Clear Channel Agreement). A Freedom of Information request for this contract will be filled on behalf of Renew. iii. CBS Outdoor: CBS Outdoor provides advertising on SFMTA Muni Vehicles. c. Non‐Measurable Attributes: Based on the wording of the code, residents have been erecting illegal transit shelter‐style backlit signs on private property immediately adjacent to the road allowance. Metro Lights Outdoor Media, a subsidiary of Fuel Outdoor, is operating such signs illegally throughout San Francisco without being fined.
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Renew America Figure 20 ‐ Metro Lights Outdoor Media illegal signage.
Source: www.illegalsigns .ca. JC Decaux rolled out co‐ordinate newspaper boxes in San Francisco. The San Francisco Chronicle and USA Today found that their papers didn’t sell in JC Decaux’s boxes, so they don’t participate in the program and they install their own boxes beside the “co‐ ordinate” boxes. Figure 21 – Street Furniture Rebellion.
Source: www.illegalsigns .ca. 7. Conclusions: a. Market for Renew: San Francisco’s affluent residents and focused financial district make it an ideal outdoor advertising market. Due to this, outdoor advertising, both illegal and legal, has proliferated throughout the city. The City was an early pioneer in street furniture. Due to these factors, the local population has enacted several codes to restrict new outdoor advertising. b. Legal Constraints: Proposition K makes Renew illegal in San Francisco. The previous proposition left room to maneuver, but this November 2007 proposition, which won a popular vote, will be a significant challenge. The SF MTA may be forced to convert all
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Renew America trash bins to bomb resistant trash bins due to a 2004 DHS Directive and pressure from their local US congressman. Other street furniture agreements are not exclusive. c. Urban Deployment: San Francisco’s history with street furniture presents a welcoming environment for Renew. Its other deals are non‐exclusive. San Francisco set a benchmark that will be important for Renew; giving advertising space to a street furniture company in exchange a public good without MAG or revenue share. d. Transit Deployment: Between 2004 and 2007, SF MTA officials, including the chief executive, have called for bomb resistant trash bins. i. A Freedom of Information request concerning the SFMTA’s agreement with Clear Channel has been filed on behalf of Renew. e. Next Steps: i. Focus on Transit Deployment where SFMTA officials have called for bomb resistant trash bins. ii. Work through US Representative Anthony Weiner and with an understanding of federal grant programs (possible with Renew’s partner Centerpoint) to structure win/win deals for the transportation community. iii. Focus on Renew as an Information Kiosk and work with city officials outside of the Planning Department. iv. Exploit successes in another market to engage city officials. v. Get a legal rendering of Proposition K
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Renew America
Maps
PART IX
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/Appendices are available in digital format upon request*
/END OF DOCUMENT*
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