A battle between Gov. M. Jodi Rell and the state’s billboard industry appeared destined for a truce during this year’s legislative session.
After Rell issued a surprise executive order in February halting new contracts to build or maintain outdoor advertising on state property, an apparent deal reached in the session’s final days would have scaled back the advertising on public property.
But the fragile agreement died on the last night of the session, allowing Rell’s order to stand.
Now letters have been sent to companies with billboard leases with the state, informing them that their leases will not be renewed, according to the Department of Transportation. And although Rell and the industry have said they still want to reach a compromise, no meetings have been scheduled since the legislature adjourned on May 7.
$1.3M In Leases, Fees
“Right now we hope to meet with the governor’s office to see if we’re able to reach a resolution that satisfies the governor and the outdoor advertising industry of the state,’’ said Michael S. Dugan, a lobbyist for the industry and vice president of government relations for M.P. Guinan & Associates.
The Outdoor Advertising Association of Connecticut claims Rell’s order will ultimately cost its members more than $4.5 million annually and lead to job cuts. The state would lose about $1.3 million annually in lease payments and permit fees, according to the association.
The group has not ruled out pursuing legal action at some point.
“I think the industry is holding off on taking any kind of action until we exhaust our efforts in trying to reach a compromise with the governor and the General Assembly,’’ he said.
Asked about the possibility of a lawsuit, Rell said she wasn’t aware of it.
According to the DOT, most of the 120 billboard spaces on state-owned property are along rail lines, and those leases run until 2016. There are about a half dozen on Bradley International Airport property, and those leases expire in 2015. That would mean that Rell’s order would immediately affect about a dozen spaces.