The company that manages the Honda Center will get exclusive rights to sell advertisements on two electronic billboards in front of Anaheim’s transit hub, the Anaheim Regional Transit Intermodal Center or ARTIC.
Under terms of the one-year contract with Anaheim Arena Management, the city is entitled to a minimum of $80,000 as well as a quarter of any profits above the first $120,000 the company generates in ad revenue.
The city will also get to use the billboards for 10 percent of the advertising time.
Revenue from the contract will go toward paying ARTIC’s $5.7 million annual operating expenses, according to figures from the city’s 2015-16 comprehensive annual financial report.
The city initially planned to pay for the controversial bus and train station, which cost nearly $181 million to build, with a naming rights deal, but it has yet to materialize and ARTIC has operated at a deficit since it opened in 2015.
The City Council Tuesday approved the contract unanimously and without discussion.
Anaheim originally approached Clear Channel Outdoor with a deal that required them to pay the city a minimum of $100,000 each year, but Clear Channel backed out because they did not expect to make that much in revenue, according to a staff report.
The city then lowered that threshold to $80,000, and Anaheim Arena Management was the only company that submitted a bid.
Contact Thy Vo at firstname.lastname@example.org or follow her on Twitter @thyanhvo