Journal Editor

Facing numerous threats of litigation, Des Plaines aldermen Monday night agreed to open the door for media giant Viacom to apply for city permits to erect five billboards along local tollways.

In a contentious 90-minute closed-to-the-public executive session, City Council's decision settles at least part of the complex billboard rights matter. The agreement allows Viacom, which owns among other companies CBS television, the ability to apply for billboard permits after having purchased those rights from Premere Media, Inc. for an undisclosed price. Earlier this year, it was learned that Lamar Outdoor Advertising had bought from Premere Outdoor, Inc. the rights to erect 10 billboards for $10.5 million. Five of those signs were later sold to Premere Media, Inc., which not long after sold those rights to Viacom.

Viacom, along with at least one other billboard company has threatened to sue the city if they are not permitted to erect some billboards. And while City Attorney Dave Wiltse said yesterday (Tuesday ) that he now feels the city can move forward to resolve all of the legal issues involving outdoor advertising companies, there is some belief that many more legal problems will continue to loom for some time.

"We should be concerned about other billboard companies suing the city," said Ald. Carla Brookman (5th), who strongly opposed the decision that was eventually made Monday night. The other two aldermen who voted against the agreement were Pat Beauvais (1st) and Laura Murphy (3d).

"It's a travesty what went on in the executive session," said Brookman. She said leaders should first have taken the necessary action to clear the city's name on the issue before approving an agreement.

Monday night's decision, officials hope, will help the city wiggle out of a legal dilemma over which companies can apply for and receive city permits to erect seven more billboards along the Northwest and Tri-State tollways. Three signs are already in place, having been erected by Lamar.

At the core of the matter is Lamar's purchase of Premere Outdoor, Inc. in July 2003---just 42 days after Premere had secured an agreement from a majority of council members to erect 10 billboards in exchange for some cash including $25,000 per year for three years to pay for fireworks displays.

In October, Wiltse, digging into the billboard deal and revelations that convicted felon James Dvorak, a close friend of former acting city manager Bill Schneider, was a shareholder of Premere, discovered that Lamar paid $10.5 million to buy Premere Outdoor. That sale along with the belief by some aldermen that the city awarded those rights for too cheap a price, and concerns about the Dvorak connection, led to the decision to hold off awarding additional billboard permits.

As described by several sources within city hall the past few days, strong pressure has been applied to city officials in recent weeks from Viacom, Lamar and other billboard companies wanting a resolution to the matter. Further delay meant that Lamar and Viacom could not generate as much advertising revenue as they would be able to if all permits and signs were in place. Another factor involved smaller billboard companies wanting a piece of the action. Several informed sources told the Journal this week that those smaller sign companies have been trying to gain a competitive edge in recent days by attempting to work out deals with owners of property along the Northwest and Tri-State tollways. Ald. Brookman expressed concern that those companies may sue the city saying they were frozen out of the billboard permit process. Other city officials scoff at Brookman's assertion.

Wiltse said any other sign company is free to submit an application to the city to erect one or more billboards, obtain state permission, and go through the application process that includes obtaining City Council approval.

Whatever company possesses the billboard rights has a potential gold mine in their grasp. A single double-sided billboard could generate as much as $20,000 to $40,000 per month if located along a local tollway near O'Hare Airport.

In the meantime, city sources said that it received a letter from Lamar this week strongly urging that it be allowed to erect its two remaining billboards in Des Plaines. Three of the five billboards it has a right to erect have been installed within the last year.

"We still have issues with Viacom and Lamar," said one council member who asked not to be identified. One of those issues involves a large sign erected earlier this year by Lamar near Touhy and River roads. Neighbors have loudly complained about that billboard, which looms near their back yards, and how it has devalued their property.