Posted: March 23, 2018
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF032818-12

Agenda Item Title:

Authorize Mayor & Finance Officer to Sign Settlement Agreement Between the City of Rapid City and Epic Outdoor Advertising

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
03/28/2018
City Council Hearing Date:
04/02/2018
Petitioner:
Epic Outdoor Advertising
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
In 2015 the City took action against Epic to prevent it from running full motion advertising on its billboards in violation of the City Code. Epic appealed to the City’s Zoning Board (ZBOA) which found that Epic was violating the City Code. Epic filed suit appealing the decision of the ZBOA. In December of last year the Circuit Court overturned the decision of the ZBOA and ruled that Epic’s use of full motion video was a grand fathered use. Epic and the City have appealed that decision to the South Dakota Supreme Court. The City is appealing the Judge’s decision that motion is a grand fathered use and Epic is appealing the Judge’s decision to deny them their request the City pay their attorney’s fees of a little over $20,000. The first briefs are due to be filed with the Supreme Court by mid-April. Epic has proposed settling this case pursuant to the following terms: 1) Epic will cease running full motion video and will operate all of its billboards in full compliance with all City ordinances; 2) The City will not be agreeing to pay Epic any money for its expenses or fees; 3) The City will approve an ordinance change creating an off-premises sign overlay district along I-90 which would allow billboards of 672 sq.ft. and a maximum height of 40 feet (Currently, the maximums in the City are 250 sq.ft. and 30 feet in height); 4) The City will approve an ordinance amendment exempting existing billboards from obtaining a conditional use permit; 5) The stipulation requiring Epic’s four “public purpose” billboards to run 20% “public service” advertising every hour be removed and the parties will stipulate the four billboards are legal non-conforming uses and will be regulated as such in the future. This settlement only involves the lawsuit related to the decision of the ZBOA and does not resolve the parties other lawsuit challenging the legality of the City’s sign credits.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
None. There is no money being paid by either party.

Recommendations:

Origination Recommendation Notes:
Action: Approve or Deny Notes: Since the parties have briefs they will need to file time is of the essence. Epic needs an up or down vote.
City Council Options:
If you approve the settlement agreement staff will begin working on the ordinance amendments necessary to fulfill the City’s commitments. Once the ordinance amendments are approved and become effective, the lawsuits will be dismissed. If you reject the settlement the parties will continue the appeal on this case to a final resolution.

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