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Everything You Ever Wanted to Know About Signs but Were Afraid to Ask

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We’ve been at City Hall a fair number of times, but it wasn’t until this week that we had the rather delightful experience of being met by a beatboxing duo at the front door or rocking out to OutKast in the Council Chamber. The occasion for this upending of formality? A town hall meeting, hosted by a network of organizations known collectively as the Beautiful City Alliance. The coalition is working to convince city council to direct revenue from the billboard tax it plans to introduce this summer towards art in the public sphere and is stepping up its campaign efforts as the vote on that tax approaches. The town hall, attended by some two or three hundred artists and activists, as well as several city councillors, was part informational meeting and part pep rally, with a bit of spontaneous art production thrown in for good measure.
The evening was, like the audience, highly eclectic, featuring impassioned speeches by street artists and learned discourses on council’s committee structure by experienced activists. Our favourite moment came when Councillor Adam Vaughan took to the podium with a bit of practical advice for his mostly younger, mostly less experienced comrades-in-arms. He more or less gave a crash course in how to game the bureaucratic system and gain the ear of your local councillor—the key to which is apparently complaining about something other than the thing you really care about until you make it into the circle of trust and then letting loose on your actual gripes. (Thanks, Adam! We’re gonna put that to use really, really soon.) The moments of levity belied a real determination, however—there is a serious movement afoot to see a reorientation of priorities in public space.
In addition to the billboard fee, the City will be proposing a new sign bylaw this summer. Such regulations can overwhelm with their detail and complexity, and so we thought we’d offer a crash course of our own, one in the nuances of the debate surrounding billboards and the taxing thereof. Specifically, we’ve canvassed some of the most prominent activists on this issue to try and gain a better understanding of their concerns and learn what they hope will come of the proposals.


So, who are these activists so concerned with the fate of our billboards? We’ve consulted with Devon Ostrom and Adam Chaleff-Freudenthaler, both of the Beautiful City Alliance, Rami Tabello of Illegal Signs, and Jonathan Goldsbie of the Toronto Public Space Committee (and also, of course, of Torontoist, though in the context of this article he is speaking, and only speaking, for the TPSC). These activists, along with their respective organizations, have been working for years to build momentum for sign regulation, enforcement, and taxation, and they know, possibly better than anyone, just where the pressure points in this debate lie.
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Why does Toronto need a new sign bylaw?

The regulations that govern billboards and signs were never updated after Toronto’s amalgamation—there are currently six sets of bylaws, one for each of the six old municipalities. The bylaws differ substantially, so that a sign may be perfectly acceptable in one part of the city but fall afoul of the rules in another. In addition to the general inconsistency, this makes it very hard for the City to efficiently determine whether a sign is legal or not and has contributed to the proliferation of illegal signs. Toronto is aiming to replace the existing hodgepodge with a consolidated bylaw to regulate signs across the city. The new bylaw is being packaged with a new billboard tax, which the city currently does not levy.

What does a sign bylaw regulate, exactly?

A sign bylaw lays out a set of criteria that determines what counts as an acceptable billboard or sign. Everything from the height and square footage of a sign to the material from which it’s made can be regulated. The bylaw also includes something like crowd control for billboards, establishing minimum distances between one sign and another, thereby preventing clusters of billboards all showing up in close proximity to one another. This has the effect of limiting the number of billboards that can appear in any given area.

Why is a billboard tax necessary?

First and foremost, to pay for the regulation of the billboards themselves. The City does not currently have the resources to properly enforce its sign bylaw, which is one of the reasons so many billboards in the city are illegal but still standing. To ensure that the bylaw is respected, the City needs to build a comprehensive listing of existing billboards, expand its staff of bylaw officers, and have funds to combat any legal challenges issued by the billboard industry. As summarized by Goldsbie: “It’s about forcing an industry that for decades has prospered from its lawlessness to cough up the money that the City needs to adequately police it. It’s not too different from how we make the manufacturers of certain products (partially) cover the costs of our recycling programs.”
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What are the odds that the proposed bylaw and tax will pass a Council vote?

Extremely high. The City needs a new sign bylaw and has already indicated that it thinks that a billboard fee is also appropriate. Tabello told us that the proposal “has a very broad base of support from the left, centre, and right.”

Why all the fuss then?

Devil, meet details. Though the bylaw and billboard tax will almost certainly pass a vote, the exact wording of the bylaw’s provisions and exact rate of the tax have not yet been determined. There are two major points of contention that have yet to be ironed out: the variance application process and the allocation of revenue generated by the tax.

What is a variance, and why does it matter?

Tabello, an expert in sign variances, explains: “A variance is an exception to the bylaw which allows a billboard company to legally maintain a sign that does not comply with the bylaw.” If a company wants to, for instance, put up a sign that is taller than the allowable limit or install a video billboard rather than a plain old vinyl one, it needs to petition for permission to do so. Signs that require variances are, as a general rule, bigger and louder than the norm. A variance can also be requested if someone wants to put up a new sign that is closer to an existing one than is allowed. Such a variance is, in essence, a request to increase the number of signs that are permitted in a particular area.
In theory, variances are intended to provide a mechanism for accommodating minor technical discrepancies between a sign a company wants to install and the established criteria—the spirit of the bylaw is still supposed to be respected. Variances can and often are abused, however, so that they may end up functioning as loopholes that allow companies to put up signs that are much more intrusive, either in nature or number, than they are supposed to be.

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Councillors Adam Vaughan (top) and Joe Mihevc (bottom).

How are variances granted?

Currently, variance applications are heard by community councils. Community councils are committees of Toronto’s overall City Council, made up of councillors from a particular part of the city (Etobicoke, East York, North York, etc.). They allow for local decision making, so that if a company wants to put up a larger-than-allowable billboard in a certain neighbourhood, councillors from that specific area of the city will be the ones deciding whether or not to permit this. The frequency with which a particular community council grants variances tends to depend on the political leanings of its members: some councillors tend to allow many variances and others to permit relatively few.

Why is the variance application process a point of contention?

If the new billboard tax is passed, and variance applications continue being run through community councils, the worry is that councillors will feel pressured to approve many more variance applications because of the tax revenue that this will generate. Once the tax is introduced billboard companies will try harder than ever to get variances for larger signs: these bring in more money and will help the companies offset the cost of the new tax. Companies will also attempt to get variances for existing illegal billboards rather than taking them down, effectively trying to grandfather in those signs. Rather than simply going by their political preferences, councillors will come under a new kind of pressure to approve these variance applications in order to increase cash-flow to the City. The net effect might be to greatly increase the number and footprint of billboards in Toronto.
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Are there alternatives to the existing variance approval process?

Public space activists have been asking for an arm’s length, quasi-judicial body to hear variance applications, one that is not composed of elected city councillors and thus one that is not subject to political pressure via the enticement of increased revenues. Another option would be to regulate the variance application process itself, by drawing up a strict set of criteria that a variance application would need to meet before it could even come up for consideration. This would narrow the latitude community councils have in deciding whether to grant a variance and thus alleviate some of the political pressure they might otherwise face.
What is essential in either case, says Chaleff-Freudenthaler, is that there is a “depoliticized variance process that ensures that decisions are made according to and aligned with the spirit of the new signs bylaw, as opposed to one that can be used as a means to raise additional money through the billboard fee.” Simply put: the people who approve or deny variance applications need to be free to apply the bylaw without prejudice.

How will the billboard tax revenue be allocated?

This is the other great sticking point. The first priority will be to fund bylaw enforcement, but it is very likely that the billboard tax will bring in more money than is needed for that. (Just how much more won’t be known until the City settles on a fee structure and until billboard companies are forced to release information about the value of their signs.) The money could, in theory, go to the City’s general revenues, or it could get earmarked for specific programs or policy initiatives.

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Adam Chaleff-Freudenthaler and Devon Ostrom.

What is the Beautiful City Alliance? What is its interest in the billboard issue?

The Beautiful City Alliance is a coalition of more than forty groups who believe that billboard tax revenue should be directed to arts funding. The rationale for this, according to Ostrom, is “offsetting the damage that billboards cause to the visual landscape. Also, every other form of advertising we have gives us something back.” His point is essentially that the ads in a magazine underwrite that magazine’s content and thus provide benefit to the readers who see the ads, but the ads in our public spaces do not, right now, come with any attendant benefits at all—they don’t underwrite any positive contribution to the public sphere. By allocating billboard tax revenue to the arts this imbalance will be redressed (Ostrom described it to us as a “remedial act”), as the City will be able to financially support artistic activity that enhances our public spaces. The great fear is that the money may wind up simply going into the City’s general coffers and not be put to the specific purpose of enhancing public space.

What happens next?

Intense discussions will be taking place over the next few weeks as the draft bylaw is formulated. The billboard industry is lobbying members of council, and activist groups are trying to balance those efforts with a concerted push for a stringent set of regulations. The billboard tax will come up for debate at a meeting of the Executive Committee on June 2; the various provisions of bylaw itself will come before various other committees (such as Planning and Growth Management, and Licensing and Standards) during the June cycle of meetings.
All photos of the Beautiful City Alliance town hall meeting by David Topping/Torontoist.

Comments

  • http://undefined Green Sulfur

    Great article. I’d heard about this stuff but this primer puts it all in context and now I’m even more convinced that this new bylaw and tax are good and needed things.

  • http://undefined octpatp

    Nice work. I’m a big admirer of illegalsigns.ca and glad to see that this initiative is getting off the ground. Kudos all round!
    Let’s hope that Denzil Minan-Wong doesn’t suddenly decide that the way to raise revenue is by selling every possible surface to advertising companies (much as the TTC loves to do).

  • http://undefined torontothegreat

    This idea could really work out for everyone, including the billboard companies. Well written article, really.
    re: quasi-judicial body vs community based decision making. How would the quasi-judicial body handle certain community issues? Such as North York, there are strict guidelines on the content of the billboards, whereas downtown may not see these same rules.
    >they don’t underwrite any positive contribution to the public sphere
    What about PSA’s or first party signs on Hospitals? What is the activists’ definition of ‘positive’ contributions then?
    >the City will be able to financially support artistic activity that enhances our public spaces
    Can you explain further how giving galleries and artists free money will enhance our public spaces? Is the idea that this money will be used for ‘special’ projects by these artist to produce art EXCLUSIVELY for Public Space? Or will the money be generally un-accounted for? If it’s the latter, how does this enhance our public space?

  • http://undefined Svend

    Why allow any variance to established rules?
    If advertisers can’t adapt and conform, tough luck!

  • http://undefined torontothegreat

    Svend, the variances ARE an established rule at this point (RE: The regulations that govern billboards and signs were never updated after Toronto’s amalgamation—there are currently six sets of bylaws, one for each of the six old municipalities.).
    I think the point is that the Public Space peeps want to have it unified and solidified once and for all. The current laws allow this adaptation, giving public space people nothing to really stand on. So in essense it’s currently ‘tough luck’ for those that oppose the signs.
    I think this will level the playing ground, perhaps someone could correct me if I’m wrong?

  • http://undefined torontothegreat

    Another question.
    When reporting on these issues, is there even an attempt to get the other sides point of view (IE, outdoor ad company)?

  • http://undefined rek

    Will there be any changes to fines related to illegal signage?

  • http://undefined yokes

    Variances are permitted under the Planning Act to any development bylaw. The same rules apply to building your back deck as they do to a sign company.

  • http://undefined x_the_x

    I’ll limit my comments and not question the billboard campaign more generally, because clearly it is the central issue of our times.
    But I am not surprised that there is no analysis on the impact of the tax on property owners who rent space for signage, the signage companies, the businesses and charities that place the ads, etc., because certainly the hidden point is to punish these purveyors of “visual pollution”, or whatever dubious phrase the activists have successed in inserting into the conversation. (I do read above that the billboard companies won’t release certain information, and while this is coloured by the author to mean that they are trying to stymie the bill, it is as likely to be for competitive reasons.)
    My main objection is that the monies raised, damn the consequences, will not flow into general revenues. Targeted taxes are always a bad idea, even when the recipients of the funds are not designing the tax, as is the case here. The distribution of the monies should be subject to the same policy priority process as every other dollar that is spent.

  • http://undefined Vincent Clement

    Variances are permitted to bylaws passed under Sections 34 and 38 of the Planning Act. Further, a Committee of Adjustment may grant minor variances to any by-law that implements the Official Plan
    I’m surprised that the Community Councils are the delegated authority to hear sign variance applications. I would have thought that the Committee of Adjustment would hear these variances. Interesting.

  • http://undefined Vincent Clement

    If it is a tax, then it flows into general revenue. The City would then allocate the same portion to billboard enforcement and/or whatever else they want to during the budget process. The tax can be whatever amount, subject to any limitations passed by the Province.
    If it it a fee, the money would not flow into general revenue. The money would be used for billboard enforcement and processing applications. However, the City must justify the fee on the basis of cost-recovery. In other words, they can’t charge more than it costs to process the applications and enforce the regulations.

  • http://www.publicspace.ca Jonathan Goldsbie

    The old Municipal Act, under the authority of which all of the current bylaws were written, had strict caps for the amounts and types of fines that municipalities were allowed to levy.
    Both the Municipal Act, 2001, and the City of Toronto Act, however, grant municipalities additional powers in this regard. Have a look here, and take particular note of section 370(2)(d).

  • http://www.publicspace.ca Jonathan Goldsbie

    The Planning Act actually has no authority in this area; in Toronto, the power to regulate signage is granted by the City of Toronto Act, and in the rest of Ontario by the Municipal Act. That’s why variances don’t (currently) go to the Committee of Adjustment and why billboard companies can’t appeal unfavourable decisions to the OMB.

  • http://undefined Devon Ostrom

    RE: (Torontothegreat) “What about PSA’s or first party signs on Hospitals? What is the activists’ definition of ‘positive’ contributions then?”
    It is obvious from the Environics and Pollara statistics that the industry has broken its ‘social license’ to operate in the public sphere and is presently degrading its buyer’s messages rather than enhancing them. This is despite any positive charitable actions or attempts to reach out to our supporters. (Please see independently commissioned stats at: http://www.beautifulcity.ca/bcbf.asp?id=29 on Toronto voters supporting fewer billboards, removals, fines and taxes for art.) If the fee is enough to make a positive difference in public space – both in enforcement towards greatly reducing the oversaturation that negatively effects their clients, and in supporting art — then there is a chance that industry will be considered corporate citizens by the public and more like other forms of advertising i.e. barely tolerable in that it enables significant and widespread informative, independent and enjoyable content.
    RE: (Torontothegreat) “Is the idea that this money will be used for ‘special’ projects by these artist to produce art EXCLUSIVELY for Public Space? Or will the money be generally un-accounted for? If it’s the latter, how does this enhance our public space?”
    At staff estimated, mid-range revenues of 18 million per year the following would be possible in supporting art in the public sphere including festivals, outdoor performances, sculptures, murals, accessible arts programming etc.
    - An historic 53% increase to the annual municipal funding available to all artists, festivals and arts institutions.
    - Close to $100,000 dollars for public realm improvement for each of Toronto’s 44 wards, every year.
    - Over $300,000 annually for each of the 13 priority neighbourhoods to fund accessible youth arts programming.
    - Hiring 17 dedicated staff to enforce the new billboard bylaw, create a public inventory, direct removals and collect fines.

  • http://undefined Devon Ostrom

    Not true, the city has hired an economist (as has the industry) to decide on a optimal level of taxation and not create undue hardship. Here is the Sign Bylaw Project’s second round estimates: http://www.toronto.ca/signbylawproject/pdf/third_party_sign_charge_april09.pdf

  • http://undefined Devon Ostrom

    RE: (x-theX) “My main objection is that the monies raised, damn the consequences, will not flow into general revenues”
    Not sure if I understand your reasoning. Please explain? Here is the history of dedication so far so we are both on the same page: The Deputy City Manager and Chief Financial Officer have recommend that: “In conjunction with the development of a new City sign by-law, DCM Richard Butts be directed to consider and report back to the Executive Committee on the potential application of a billboard or public signage tax, specifically for the purposes of raising revenue to administer the by-law and raise revenues for City beautification, arts or cultural initiatives;” (Staff Report, June 11th) This action was later passed by the Executive Committee (Executive Committee Item 10.1, June 25th 2007) Also, from the staff report on the Revenue Tools Consultation talking about how the tax was singular in receiving a broad spectrum of public support: “One exception was the billboard tax option. This tax drew support from some industry spokespeople, assuming it is applied to update and enforce the City’s sign by-law, and from arts and culture representatives, as a means to enhance City funding for the arts community.” […] “A billboard tax could be consistent with the objectives of the City’s Clean and Beautiful initiative and/or support for the arts in Toronto, depending how the proceeds are applied and would provide for cost recovery within the program administering signage in the City. The concept of a billboard tax was supported during the consultation process…” (Staff report for action on New Taxation Measures – City of Toronto Act, 2006).

  • http://undefined torontothegreat

    Not sure that really answers my question, so perhaps I should re-phrase from a more personal standpoint (Thanks for the stats though, very interesting numbers to say the least).
    I work in the non-profit sector, for an un-named charity. We receive approximately (rough numbers here) 3 million dollars a year in PSA’s from various advertising mediums (radio, outdoor, digital etc). To us and many of our clients these PSAs would be defined as ‘positive contributions’ both to our organization as well as the public (awareness, fundraising, tax dollars NOT being spent on us, instead we receive millions through charitable donations).
    From what I can understand by your answer, you view these negatively. Or am I totally off-base here?
    Has any thought gone in to this? How would my organization cope with this loss? Quite frankly, I’m not sure. I (for one) may be out of a job. I can almost guarantee you that making our fundraising efforts more grassroots would have a negative affect on the in-flow of money which in turn affects our clients who cannot speak up for themselves.
    >Toronto voters supporting fewer billboards, removals, fines and taxes for art.
    Do you think a 216 sample vote constitutes saying ‘Toronto voters’?
    Thanks for answering my second question. I personally think the money should be spent somewhere else, but it looks like there is at least a decent plan for it. I’m more afraid of the 18 million/year becoming a black box.

  • http://undefined Devon Ostrom

    RE: “Do you think a 216 sample vote constitutes saying ‘Toronto voters’?”
    Yes, statistically speaking. If you were to increase the sample size I can bet you anything you would come up with something very close to that — and actually we did with the earlier Pollara Stats.
    RE: Charities
    Great that you get PSA access, nothing against that. I was just pointing out that obviously they have had little effect on how people perceive the industries CSR profile. I would be happy enough with charities being exempt from the taxation and there has been a lot of talk about this on the policy side. I also know that as far who gets access to billboards is very stratified, there is endemic censorship and clients rarely, if ever can select locations.

  • http://undefined torontothegreat

    Re: Stats
    You have approxmiately a 99% Confidence Level with a Confidence Interval of 8 (pretty high) for you to have come up with that sample size. Not very convincing IMHO.
    Good stuff on the charities though. Please, please keep this in mind, not from my selfish point of view, but for the millions of clients that charities help yearly.
    P.S. Censorship to location. Some are better than others, there is no formula for this. I could go and list the companies that are ‘good’ to us in this regard, but I think I’d be in violation of my NDA.
    *****
    The confidence interval is the plus-or-minus figure usually reported in newspaper or television opinion poll results. For example, if you use a confidence interval of 4 and 47% percent of your sample picks an answer you can be “sure” that if you had asked the question of the entire relevant population between 43% (47-4) and 51% (47+4) would have picked that answer.
    The confidence level tells you how sure you can be. It is expressed as a percentage and represents how often the true percentage of the population who would pick an answer lies within the confidence interval. The 95% confidence level means you can be 95% certain; the 99% confidence level means you can be 99% certain. Most researchers use the 95% confidence level.
    When you put the confidence level and the confidence interval together, you can say that you are 95% sure that the true percentage of the population is between 43% and 51%. The wider the confidence interval you are willing to accept, the more certain you can be that the whole population answers would be within that range.
    For example, if you asked a sample of 1000 people in a city which brand of cola they preferred, and 60% said Brand A, you can be very certain that between 40 and 80% of all the people in the city actually do prefer that brand, but you cannot be so sure that between 59 and 61% of the people in the city prefer the brand.
    *****
    I’m not a statistics expert, it was just part of my post-secondary education in computer sciences.

  • http://undefined Devon Ostrom

    Thanks for the stats info. For the Environics Stats the margin of error was plus or minus 6.7 percentage points, 19 times out of 20. (Although something closer to 2 or 4 would have been better, this is fit to print as an clear indication of support). So somewhere between 61 and 75ish Toronto Voters are likely to support it — safe enough for me. Especially since we recieved something quite similar with 2000 people polled nationally via Pollara (+/-2 19/20)

  • http://undefined Vincent Clement

    The Planning Act most definitely has authority in this area.
    Section 45(3) allows a municipality to “empower the committee of adjustment to grant minor variances from the provisions of any by-law of the municipality that implements an official plan”.
    In my municipality, the Committee of Adjustment hears variances from the zoning, sign and fence by-laws. This is common is many municipalities in Ontario. I even been to the OMB on a few sign bylaw variances. The Board never questioned its jurisdiction in these cases.

  • http://undefined Hamutal Dotan

    Quick update: due to a variety of circumstances (pre-dating the strike), the bylaw and tax will now be considered in the September cycles of meetings.