City puts clamps on taxi-top advertising

Entrepreneur Kurt Theobald’s plan to make Springfield a little more metropolitan has backfired – for now.

The city of Springfield has put the brakes on Theobald’s business of putting advertisements on top of Yellow Cab Co. taxis, saying the plan violates the city’s sign ordinance.

When Theobald started Emphasis Marketing Corp. in spring 2005, he thought he was in compliance with city ordinances.

But the city’s Board of Adjustment ruled July 11 at a hearing that Springfield’s Building Development Services Department interpreted city ordinance correctly when it said that taxi-top ads are a violation.

Yellow Cab Co. received a cease-and-desist order from the city in April, about a month after placing the first advertisements on its taxis.

Theobald had already sold advertising to 37 cab drivers – Yellow Cab drivers own their own vehicles – and built $50,000 in operating debt. Contracts were signed with Sharp Signs and Polyfab Plastics and Supply Co. to develop signage and Barkers Frame and Collision to install the signs. Rasta Grill and State Farm Insurance agent Bob Burkey signed on as advertisers.

“I passed the point of no return a long time ago,” he said. “Going into entrepreneurship, you have to put your neck on the line. I started investing in research and development with debt – that’s what you have to do.”

Bankruptcy could be an option if the situation doesn’t improve, he added.

Miscommunication

Theobald said he called the city on three separate occasions before proceeding with development and placement of his signs to make sure he was in compliance. He said he was assured by land development inspector Vicki Hilton that he was in the clear.

The issue, it seems, was miscommunication.

City staff members say they were under the impression that Theobald’s signs were to be used for self-promotion by the taxi company.

So when one of the signs was spotted, the order to cease and desist was sent. City ordinance allows advertising on vehicles, provided the ads are less than two square feet in size and promote the company that regularly uses the vehicle.

“Our contention has been and will continue to be that this signage is not permitted by the ordinance in any way, shape or form,” Building Development Services Director Nick Heatherly said at the hearing. “It was never stated that he was advertising for anyone except the taxi company. He was inquiring about whether he could have signage on the cab.”

Emphasis Marketing appealed the city’s decision to the Board of Adjustment, which led to the July 11 hearing.

Hope

The board also made a recommendation that Springfield City Council examine the sign ordinance and consider adding vehicle advertising as a permitted use.

“What’s wrong with advertising for other companies?” Theobald asked. “It’s done in hundreds of metropolises worldwide. It’s not a new form of advertising.”

He added that response to the signs during the brief time they were up was positive. Taxi drivers have told him that customers said the signs “made it feel like a big city.”

City Attorney Dan Wichmer said while council has the authority to change the ordinance and allow taxi-top signs, Emphasis Marketing cannot resume advertising until the law is changed or unless council grants an exception.

“The board made a recommendation, and the council will take it seriously like they do all recommendations,” Wichmer said.

“But (the company’s) options are either to sit back and wait until council makes a decision – and it’s unclear how long that will take – or to go to court and appeal the decision of the board.”

Theobald said he planned to let council discuss the matter before he would consider going to court.[[In-content Ad]]