Russell Township has approved an expansion of the 417 Industrial Park pylon sign, adding new advertising panels and an LED display to meet business demand and generate future transit reserve funding. (Russell Township)
Russell Township has approved the expansion of the existing pylon sign at the entrance of the 417 Industrial Park, responding to strong demand from local businesses for additional advertising space.
Council approved a contract with K.B. Media for the supply and installation of the extension at a cost of $203,941, excluding HST and additional hourly rates for electrical contracting and general labour. Council also approved an increase of $150,000 to the existing capital budget, bringing the total project allocation to $230,000.
Municipal officials said the current pylon sign has maintained full occupancy since its installation in 2019, with a growing waiting list of businesses seeking advertising space. The expansion is intended to maximize use of the existing municipal asset while creating new revenue opportunities.
The project includes an extension to the right side of the current structure, featuring eight additional advertising panels and a new LED display in the upper right corner. The updated scope of work is the primary reason costs exceeded earlier estimates prepared in 2023.
According to the municipality, the expanded sign is projected to generate approximately $100,000 in annual gross revenue once all advertising spaces are leased. That figure includes traditional sign panel rentals as well as digital advertising on the LED display.
Annual operating costs, including maintenance, electricity, and general upkeep, are estimated at roughly $20,000. Once fully operational, the sign is expected to generate about $80,000 in annual net profit. Based on those projections, the Township estimates the original capital investment could be recovered in approximately three years.
Administration also proposed financing the capital cost through an internal 10-year loan, resulting in annual repayments of about $23,000 plus interest. Remaining profits would then be directed to a dedicated transit reserve fund.
Township officials said the reserve will be used to support a future transportation solution connecting workers and employers to the 417 Industrial Park, an issue identified by businesses as a key challenge for employee attraction and retention.
Council was told that even if the sign does not reach full revenue potential immediately, strong demand and the historical 100 per cent occupancy rate of the existing sign support expectations that the project will remain profitable over the medium and long term.
Tender documents for the project were issued in February, with one compliant bid received from K.B. Media. While only one submission was made, seven companies reportedly reviewed and downloaded the tender package.
Administration recommended awarding the contract after confirming the bid met all technical specifications.
With council approval now in place, the project is expected to proceed as part of the municipality’s broader economic development efforts while generating revenue for future transit planning.
