An Ohio Department of Transportation rest-area building
Source: Credit to the Cleveland.com
| Project Name | Ohio Department of Transportation (ODOT) Interstate Rest Areas Advertising and Sponsorships |
|---|---|
| Location | Ohio State-wide (45 rest areas along interstate highways) |
| Project Sponsor / Borrower | ODOT |
| Program Areas |
|
| Value Capture Techniques | Joint Development, Sponsorships, Naming Rights |
| Mode | Other: rest areas along interstate highways |
| Description | The Ohio Department of Transportation (ODOT) developed a program to run permit advertising, sponsorship, and naming rights to the 45 rest areas and welcome centers along state highways. Under federal law, Ohio cannot commercially develop the rest areas or welcome centers. This program, which results from the ODOT Division of Innovative Delivery, was created to help evaluate and execute alternative income strategies. In May 2012, ODOT began seeking competitive bids for the Sponsorship, Maintenance, and Advertising Revenue Targeted (SMART) program. The program aimed to reduce operating costs and enhance revenue streams through maintenance contracts, corporate sponsorships, and advertising opportunities on state-owned transportation assets. It did not impose a fee on rest area visitors. At a minimum, the SMART program helps ODOT offset a portion of the $30 million to $50 million yearly cost of maintaining the 104 rest stops. Annual rest-area maintenance costs incurred by ODOT include payments for gas, water, electric, and sewage bills, mowing grass, resurfacing parking lots, improving buildings, and for janitorial and housekeeping services. This SMART program helps ODOT reduce the amount of money spent on rest area maintenance and generates money for some of the major construction projects wanted by communities. The program enables businesses and groups to pay for the naming rights or sponsorships of rest stops along interstates. It does not include restaurants and other commercial endeavors at those stops, due to federal restrictions. Through a contract with Travelers Marketing of Wellesley, Massachusetts, ODOT selected locations in and around rest areas to allow companies to purchase advertisement space. The rest areas are a prime advertising spot, with tens of thousands of visitors annually. The advertising could earn the state up to $13 million to help fund road projects. Travelers Marketing operates over 20 state agencies and toll roads nationwide. The company specializes in turning service plazas into attention-getting areas with revenue generation opportunities for state agencies. ODOT also considered selling advertising and sponsorship opportunities for bridges, interchanges, and unique road stretches. This additional advertising could generate up to $15 million a year to repair roadways in need of maintenance, new pedestrian accessibility routes, and beautification projects. |
| Cost | N/A |
| Funding Sources | $2 million in annual revenues |
| Project Delivery / Contract Method | Joint Development |
| Private Partner | Travelers Marketing |
| Project Advisors / Consultants | Travelers Marketing |
| Lenders | N/A |
| Duration / Status | N/A |
| Financial Status / Financial Performance | Per ODOT solicitation requirements, the contractor will be compensated for its services in developing and managing the program based on a revenue-sharing arrangement. ODOT’s share of gross advertising revenue shall be remitted to ODOT twice a year, on June 15 and December 15. |
| Innovations | Selling advertising and sponsorship opportunities to businesses for government-owned property can earn additional revenue to repair, maintain, and beautify transportation projects, and help reduce the amount of money spent by an agency on rest-area maintenance. |
| Related Links / Articles |
|
| Contacts | Roberto Coto |
