San Jose City Council has taken a significant step towards modernizing its advertising landscape by approving new leases for large format digital electronic signs on city-owned property. During the meeting on June 17, 2025, the council voted to negotiate and execute leases with Clear Channel Outdoor and Outfront Foster Interstate for three new digital billboard sites, which are expected to generate substantial revenue for the city.

The approved leases will allow for the installation of two digital signs at key freeway locations—Highway 87 at West Mission and Mayberry Road—and one sign at Highway 87 and Willow Street. These new installations will replace outdated static billboards, with a commitment to remove a total of 35 existing billboard faces, exceeding the city’s requirement of a six-to-one removal ratio. This initiative aims to enhance the visual appeal of the city while also addressing concerns about blight from older signage.

The financial implications of this decision are noteworthy. The city anticipates a minimum guaranteed revenue of over $21 million from the leases over the next 20 years, with projections suggesting total rental income could reach approximately $28 million. The agreements stipulate that Clear Channel will pay 45% of gross revenue, while Outfront Foster will contribute 40%. Additionally, the city will retain 12.5% of the display time for city messaging, allowing for important public announcements and community engagement.

Council members expressed their support for the proposal, highlighting the potential benefits of increased revenue and improved aesthetics. However, the decision was not without controversy. Several community members voiced concerns regarding light pollution and the environmental impact of the new digital signs. Critics argued that the introduction of LED billboards could exacerbate light pollution and negatively affect local wildlife.

Despite these concerns, council members emphasized the careful selection of sign locations and the use of technology designed to minimize light dispersion. They noted that the new digital signs would operate under strict content restrictions and would be powered by 100% renewable energy.

As San Jose moves forward with this initiative, the city aims to balance economic development with environmental stewardship, setting a precedent for future signage policies. The council's decision marks a pivotal moment in the city's approach to urban advertising, promising both financial benefits and a cleaner, more modern visual landscape.