Losing bidders challenged DOT’s selection of Spanish-based outdoor advertising franchisee. In May 2006, the City approved a 20-year franchise to Cemusa, Inc. to construct and maintain citywide street furniture, including bus shelters, news racks and pay toilets, on which Cemusa would be permitted to sell advertising space. Approval by the City’s Franchise and Concession Review Committee came after a DOT-initiated request for proposals, a DOT-review and award process, and a public hearing. 3 CityLand 129 (Sept. 15, 2006).

Losing bidders NBC Decaux and Clear Channel challenged the City’s approval, claiming that DOT improperly communicated with Cemusa two months before its decision, leading to Cemusa’s bid edging out the competition, and Deputy Mayor Daniel Doctoroff colluded with City officials to offer franchise criteria that favored Cemusa due to its ability to provide worldwide ad space for the 2012 Olympic bid. The parties also alleged that DOT improperly computed Cemusa’s plan for scrolling ad space by counting it as guaranteed revenue even though it was unclear whether the City would allow scrolling ads. Finally, NBC and Clear Channel argued that Cemusa was not the most experienced bidder and that Cemusa’s bid did not represent measurable cash values required by the RFP, since it offered worldwide ad space in lieu of cash. (more…)

In May 2006, the Department of Transportation obtained final approval on a 20-year street furniture franchise, a plan that will bring over $1 billion to the City while it meets its main goal of providing more useful bus shelters, sleek news racks, standard-sized newsstands and for the first time: permanent public toilets. The plan originated from a 1992 experiment by the David N. Dinkins’ administration that placed four public pay toilets on city sidewalks but was never pushed to a final contract despite being hailed a success.

At DOT, Kerry Gould-Schmit was among those who advocated that DOT revisit the revenue-generating plan in 2002 as the City strained to regain its financial footing after 9/11. Now as DOT’s Assistant Commissioner for the Coordinated Street Furniture Franchise, Gould-Schmit has brought the proposal through approvals, litigation and early implementation. She talks to CityLand about the plan and her path to DOT. (more…)