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. (read more…)