Dallas could soon look to an unconventional place for new revenue: advertising along the edges of some city parks.
The Dallas Park and Recreation Department is exploring large-format advertising signs as part of a broader effort to generate money for the park system.
While the idea is still preliminary, staff told Dallas City Council members Tuesday that even a small number of locations could potentially bring in millions.
“A few locations could, could generate, you know, up to 10 million bucks a year,” Deputy Director Ryan O’Connor told the council’s Finance Committee.
Staff said the city could also receive six- to seven-figure “signing bonuses,” upfront payments from advertising partners, in addition to ongoing annual revenue.
Staff said the concept would not necessarily look like a traditional billboard planted in the middle of a park; instead, the department is considering custom, architecturally designed signs placed around park perimeters and oriented outward, away from people using the park.
In an earlier briefing to the Parks, Trails and Environment Committee, staff offered more detail about what the department is considering. O’Connor said Dallas could initially look at roughly seven to 10 locations, with the potential to generate about $1 million per sign annually.
Not every park would be a candidate. O’Connor said neighborhood parks “clearly would not be” appropriate locations.
The design, O’Connor said, would be intended to complement the character of the park while limiting the impact of advertising on people inside it, saying the ads would, “be screened in such a way as to blend into the park and not to detract from the park’s functionality.”
He later reiterated, “We would desire for these to be quasi art pieces, or at least architecturally interesting, blending into the character of the park.”
The proposal comes as Dallas Parks looks for ways to bring in more money amid what O’Connor described as a period of “challenging budgets.”
“We, the park department, have been looking diligently at ways to maximize revenue opportunities and pursuing things that we hadn’t traditionally pursued,” he said.
The ultimate goal, according to the presentation, is to lessen the park system’s reliance on Dallas’ general fund.
More advertising could be coming to Dallas parks
Large-format signs are only one of the advertising opportunities under consideration.
The department is also looking at whether advertising kiosks already used elsewhere in the city could be placed in limited locations within the park system.
Another idea is further along. Dallas Parks is issuing a request for proposals for advertising banners in parks, primarily along fences surrounding athletic fields, which could provide opportunities for sponsors.
Staff said advertising could also provide some benefits beyond revenue, including space for city messaging, promotion of local events and helping visitors navigate city parks.
The presentation indicated that any large-format advertising program would likely be structured through leases. The number and locations of signs would be limited and would require city approval.
A broader push to make money from parks
Advertising is just the latest attempt to generate revenue from Dallas’ park system.
The department has been studying everything from fees and concessions to private development and alternative funding models.
As examples, staff pointed council members to parks in New York City and Mexico City that use commercial development to help pay for park operations:
Parque La Mexicana, a roughly 70-acre park in Mexico City, includes restaurants and other retailers, even a Costco integrated into the property. Staff said revenue from commercial leases fully covers the park’s operating costs.
Brooklyn Bridge Park in New York City uses a similar model. Roughly 8 to 10 acres have been used for private development that includes restaurants, retail and a hotel. About 90% of the park’s revenue comes from real estate development through ground leases and payments in place of taxes, according to the Dallas presentation.
Staff said the park generates roughly $30 million annually, compared with about $15 million in annual operations and maintenance costs.
Dallas already incorporates some commercial uses into park properties and attractions, including restaurants and retail associated with places such as the Dallas Arboretum and Dallas Zoo.
But city officials indicated they want to explore those opportunities further.
“We’re starting to move in that direction,” O’Connor said, “but we propose to move into it more aggressively.”
The department did not identify which Dallas parks could be considered for large-format advertising or when the proposal could move forward.
NBC 5 asked the city for those details Tuesday and had not received a response as of publication.