By Aaron Schulze

Melfort and Fabmar Communications renew electronic billboard deal

Nov 6, 2018 | 3:35 PM

The City of Melfort and Fabmar Communications have renewed their deal for operating the electronic billboard on Saskatchewan Ave. and Scotia St.

An additional three years was placed with the same term as the previous five, where Fabmar received 85 per cent of revenue and the city would receive the other 15, with Fabmar needing to recoup more of its losses due to investing a larger contribution.

Mayor Rick Lang said Fabmar wanted to keep the same terms when it came time for renewal with both sides having yet to recoup their initial investment.

“Advertising revenues were not as good as projected originally,” Lang said. “They were good, just not as good. The work involved in keeping that sign rented also costs some money, so (Fabmar) wanted that recognized as well.”

Lang said Fabmar lines up potential advertisers entirely on its own.

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When asked what a deal five years in the future could look like, Lang said it depends on how much the city and Fabmar recoup their losses.

“I wouldn’t want to predict what it’ll be five years from now,” Lang said. “But is there more potential that it could be more lucrative for us at that point? I would say a very good chance.”

The city is around $12,000 short of its initial investment of around $100,000.

aaron.schulze@jpbg.ca

On Twitter: @SchulzePANow