Palo Alto Considers Electronic Billboards for Revenue

The City of Palo Alto is turning to billboards to help pay its bills.

Companies have been paying thousands of dollars to advertise on electronic billboards off northbound Highway 101 in East Palo Alto, and now the Palo Alto is considering putting a similar sign up to draw revenue.

City officials said an electronic billboard can generate as much as $1 million a year. The revenue would go toward repairing and replacing the city's aging buildings, including the police department.

"We've already identified $40 million we need to catch up on maintenance," Palo Alto Vice Mayor Nancy Shepherd said.

The Palo Alto city council will consider whether to move forward with the proposal on Monday, but Shepherd does have some safety concerns of her own.

"I personally have a concern since I have to commute past the Redwood City electronic billboards and it is very distracting," she said.

A study held this year found bright, constantly changing signs divert more attention away from drivers than traditional signs. Another study conducted by Virginia Tech for the National Highway Traffic Safety Administration found anything that diverts attention off the road for more than two seconds increases the risk of a crash.

"The light would be bright and annoying," said David Ervin, a Palo Alto resident. "There's probably other ways of making the city money that doesn't involve safety or impacts the residents of the city."

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