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The Economic Context of On-Premise Business Signs and How to Establish Value in the Marketplace

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Sign Codes in Certain Destination-Oriented Cities; Demographics All Important to the Planner

While some cities "or villages" with extensive sign control, frequently including copy control, are doing well economically, it is clearly impossible to generalize that sign codes do not have a negative economic impact. Planners cannot assume, absent extensive demographic research, that the Santa Fe sign code, for example, represents a universally applicable model. Santa Fe's business economy depends upon two very specialized retail categories -- "Native American crafts" and "artist colony" productions. Many Americans travel to Santa Fe specifically to purchase items created by local artisans. Because of this, Santa Fe is a destination city.

In addition to the unique characteristics of Santa Fe's business economy, one must also consider the town's population and income mixes as well as the density ratios between housing, commercial and manufacturing activities before coming to a conclusion regarding the applicability of its sign code to other municipalities. Santa Fe's retail district comprises approximately 3% of total space available in the community, compared to 12-20% in the more typical towns. Because retail space is at a premium, it commands square-footage rental rates much higher than the average community with more space (or land use) devoted to commercial activities. Higher space rental translates to higher consumer prices; however, because many of Santa Fe's visitors are upper-income, visiting specifically to spend discretionary income on high-ticket items, high rental rates can be offset by inflated consumer prices. Finally, because retail space is confined to a small area easily discovered and traversed by the visitor, individual business on-premise signage can be small and uniform, emphasizing aesthetic-based, or "theme", signage in keeping with the town's pervading southwestern atmosphere.

The sign code of Coral Gables, Florida is sometimes referenced as a model for widespread adoption. While not a destination city in the usual sense, it nevertheless is a target residential location for upper-income retirees. As in Santa Fe, land use zoned for retail activities is quite small, with attendant higher retail space rentals and higher consumer prices. Because its primary population consists mainly of wealthy senior citizens, it functions similarly to a closed or "gated" community, with local businesses nearly entirely supported by local consumers. Certainly, permanent residents are well aware of the location of local businesses, and consequently, on-premise business signage designed to attract and inform the out-of-town passerby is considered unnecessary by both the general populace and the business district.[19]

While one can say the business communities of Santa Fe or Coral Gables are healthy despite a very restrictive, aesthetic-based sign code, one should not also say that their sign codes should be transferred to more demographically and commercially diverse towns. On the other hand, neither should one label the sign codes of destination-oriented Las Vegas or New York Times Square signage as undeserving of duplication under any circumstances. For example, all businesses in Las Vegas, casino type or otherwise, must pass rigorous design review tests before constructing or placing business signage. New York City municipal authorities also exercise strict dominion over Times Square signage, including imposition of rigid sign size-to-site ratio standards. Both cities emphasize legibility and conspicuity standards based on what is minimally required to assure a sign is safely informing and directing the unfamiliar viewer.[20] Signage in Las Vegas/Times Square does not merely index or advertise what is available; it contributes to the consumer's total experience. Additionally, visitors depend upon place-based communication and graphics systems to "move" them in and around both the indoor and outdoor environments. Whatever one may think of Las Vegas or Times Square signage, it showcases 20th Century integrated communication and graphic design systems which are specifically fitted to consumer needs and expectations.[21]

Retailing and sign regulation are infused with complex variables, and the above example communities are not characteristic in terms of Middle America demographics or socio-economic makeup. In the sample communities, and others similarly singular, a merchant is able to economically survive in a restrictive sign environment or tolerate state intervention in storefront design for several reasons. One is restrictive commercial zoning which severely limits retail space. In such instances, only those businesses with a pre-existing consumer base or start-up/development capital sufficient to "take a chance" can afford to locate there. Consumer profiles is another factor -- common sense alone tells us that the shopping habits of the affluent, with more discretionary income at their disposal, are different from those less-affluent, whose income must be conserved for essentials. Area employment patterns play a significant part -- single professionals consume differently than married professionals with children, and both consume differently than their counterparts in the blue collar or retail service labor force.

A community's business signage program may not be reflective of either demographics or aesthetic concerns, but instead express a community desire to exclude outsiders. Clearly, if a community limits commercial communication to unfamiliar travelers, such travelers will not often stop and shop.[22] Or perhaps the reason for restrictive signing is that the community does not like the zone itself, in which case the community may use the sign code to drive out certain businesses, or in the worse case scenario, to cause the entire zone to fail. In a recent Supreme Court case, 44 Liquor v. Rhode Island, the Court took a very dim view of efforts to restrict on-premise signage in order to get rid of businesses, business activities or business products viewed as "undesirable" by some members of the community.[23]

One particular municipal sign code should never be adopted for any other municipality absent prior in depth study and comparison of demographics, particularly income, employment and housing variables. Forces other than demographics may also be at work. Therefore, many questions must be asked and answered before one can conclude that one sign code fits all, or, due to strict sign design/size/placement controls, one community is a better place to shop/live/visit than another lacking similar controls.[24]

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