Downtown San Jose’s iconic landmarks might soon feature a series of digital billboards for the next two decades.

The city council approved new contracts with the digital billboard company Orange Barrel Media on Tuesday. Under the agreement, San Jose will receive 15% of the advertising time, while Orange Barrel Media will handle the maintenance and operational costs. These billboards are expected to generate tens of millions of dollars for the city. However, a group of residents opposing the plan argues that the financial gains are not worth the potential negative impact on the city’s appearance and reputation. If the billboards are approved, they will be turned off between midnight and 6 a.m.

San Jose’s economic development officials estimate the city’s deal with Orange Barrel Media will guarantee about $21 million in revenue over 20 years, while the company expects up to $37 million in total earnings.

The nearly 1,000 square-foot digital signs are planned for locations such as the San Jose Center for the Performing Arts, McEnery Convention Center, and two parking garages at Market & San Pedro Street and Second & San Carlos Street.

The installation of five digital signs, including two at the Center for the Performing Arts, marks San Jose’s most significant billboard project since the city ended its billboard ban on public land in 2018.

Jason Hemp, co-founder of the group No Digital Billboards in San Jose, pointed to a 2021 survey by the city’s planning department that showed over 61% of respondents strongly opposed digital billboards, while only 2.5% were strongly in favor.

“We’ve raised these survey results time and again before the city council, but it doesn’t seem to change their stance,” Hemp said. “They appear focused on the revenue, especially given the city’s budget shortfall.”

Clay Collett, senior development director at Orange Barrel Media, emphasized that the new ads will feature national and local businesses, with the intention of bringing more vibrancy to downtown through digitally-integrated design.

“Our proposal is designed to capture this spirit,” Collett explained, noting that new signage at the Center for the Performing Arts will promote the venue itself, along with new seating and shade options for theatergoers.

City officials believe the billboards will enhance downtown’s commercial appeal and artistic aesthetics while providing real-time emergency alerts and city messages.

Collett assured that no offensive or inappropriate content would be shown on the billboards, with the aim to partner with San Jose and showcase local events.

Although the original plan included a billboard at The Tech Interactive, CEO Katrina Stevens stated that their existing lease prevents digital billboards. She also expressed concern that such a billboard could damage the public’s trust in The Tech’s scientific integrity and affect its sponsorships.

“The limited 15% screen time for San Jose’s content would restrict our promotional capacity, and we’d be competing for attention with potentially conflicting commercial ads,” Stevens told city officials.

Les Levitt, co-founder of No Digital Billboards in San Jose, voiced concerns that the out-of-state company controlling the ads could negatively impact both downtown landmarks and local businesses.

“We’re trying to attract people to downtown, but these ads could promote places like Disneyland instead,” Levitt said. “If this is the city’s idea of economic development, we’re in trouble.”