Franchise holder advertised on public pay phones located in a residential zoning district. The Department of Information Technology and Telecommunications charged Coastal Communication Service, Inc., a public pay phone franchise holder, with displaying advertisements on public pay phones within a residential zoning district. Coastal’s franchise agreement limited the display of advertisements on public pay phones to residential districts where commercial or manufacturing uses were permitted as-of-right.

Coastal argued that DoITT had exceeded its authority by adding the as-of-right limitation in its franchise agreement. It argued that the City Council, in authorizing DoITT to enter into franchise agreements, stated that public pay phone advertising was allowed in zoning districts where commercial or manufacturing uses were permitted and had not limited the area to as-of-right districts. The ALJ upheld the violations and noted that it was not allowed to determine whether DoITT exceeded its authority. Coastal appealed to the Environmental Control Board.

The Board affirmed the ALJ, finding that ECB was not the proper forum to determine whether DoITT exceeded its authority under the franchise agreement and that Coastal failed to prove the advertisements were displayed in districts where commercial or manufacturing uses were permitted as-of-right. Coastal offered photographs to show commercial uses were located near the pay phones, but the Board noted that those uses could have been permitted through discretionary approvals, such as a variance.

New York City v. Coastal Communication Service, Inc., ECB Appeal Nos. 47619-20 (June 25, 2009). CITYADMIN