Critics call Sioux Falls billboards boom troubling sign

A change in zoning rules opened more properties in Sioux Falls for billboard advertising. However, while it's good business for landowners leasing their property and companies selling advertising, some residents are worried the streets will become cluttered with signs.

This spring, Lamar Outdoor Advertising filed a permit for building a digital billboard at 41st Street and Marion Road — a property that didn't allow billboards under the old zoning ordinance.

When the 10-foot-by-22-foot billboard goes up in the next two to three weeks, it will tower over the sign for the Flowerama flower shop, and owner Chuck Kuntze is upset that he doesn't have a say in the matter.

He leases space in a strip mall there.

"Apparently, it can happen anywhere and everywhere," he said, adding that voters didn't know what they were approving when they passed Shape Places in April.

"Look out, the flood gates are open," Kuntze said.

"Once they go up, they're never coming down," said Greg Neitzert, who campaigned this spring in support of the Shape Places zoning ordinance.

He brought his concern about billboards to the City Council recently and is recommending several other tweaks to Shape Places.

Billboards had been limited to certain commercial property, generally along the city's busiest streets such as Minnesota and Cliff avenues, but the new ordinance opens new areas. Billboards now can go on newly development commercial areas such as 69th and Western and 85th and Minnesota on the south end of Sioux Falls, and a special permit no longer is needed for advertising near a park or school.

Under Shape Places, billboard locations are tied to the size of the building on the property. It has to be commercial property with a building of 4,000 square feet or more.

"That's pretty much any commercial property," Neitzert said.

City Councilor Greg Jamison said that just because an area has commercial development doesn't mean a billboard should go there.

"It changes the look. I'm not sure if we wanted that at some of those intersections," he said.

Jamison, who is on the council's land use committee, said it's time to start working to change some things about Shape Places, including the billboard issue.

Those who sell advertising say the new opportunities for placing billboards under Shape Places is good for both their business and for landowners who lease their property for a billboard.

"You had people before that had great corners, but with the zoning, you couldn't allow a sign there," said Doug Muth, owner of the O2 Media outdoor advertising company. "Now they can be compensated greatly for it."

He said his company pays an average $100,000 for a 40-year lease. Muth isn't worried the market will become flooded with billboards, he said, because Sioux Falls is growing and demand is high.

In the past, Sioux Falls might get a permit for one new billboard each year, according to the city's online database. Since Shape Places took effect in late April, 19 permits have been filed.

Not all of those will result in a billboard at that address.

Sioux Falls, unlike other cities, allows billboard companies to file a permit to build before having permission from the landowner.

That's not good for the landowner, said Doug Rumpca, general manager for Lamar's South Dakota operations. It can tie up a property and keep the owner from negotiating with other advertising companies, he said.

Lamar pulled several permits since spring after working out deals with property owners, but Rumpca said the company might not build on all of them.

"I just don't think a flood of billboards with one after another is a good idea," he said. He prefers slow, steady growth.

If anything needs to be changed with Shape Places, Rumpca said, it's the required spacing between billboards. Like the old ordinance, the zoning rules require 600 feet between signs. He said that could double.

"The city is growing. To never have any more (billboards) would not be good, but certainly control it," he said.

Billboard permits filed, by year

2012: One at 1612 W. 41st St.

2013: One at 4401 E. 10th

2014: 22, 19 since ShapePlaces took effect in April

• 7125 W. 26th St.

Billboard locations

Billboard permits filed under Shape Places

• 4900 S. Louise Ave.

• 3528 S. Western Ave.

• 6509 S. Louise Ave.

• 6100 E. Hein Place

• 5301 W. 57th St.

• 5108 S. Cliff Ave

• 5220 S. Grand Circle

• 3400 S. Marion Road

• 4005 E. 10th St.

• 600 S. Cliff Ave.

• 2517 S. Louise Ave.

• 3245 S. Sycamore Ave.

• 1927 W. 57th St.

• 3000 E. 26th St.