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Although the Agreements are silent as to what constitutes a transfer, Adams has given the <br />City notice and has asked for its formal consent. <br />Reasonable consent allows the City to look solely at the buyer's ability to perform under the <br />terms of the contract. To this end, Lamar is a publicly traded company with annual <br />reported revenue in the amount of $775,682,000 (market value of $4.3 billion). Lamar has <br />been in operation since 1902 and currently operates in 44 states. City staff has <br />researched Lamar's background and resources and has determined that Lamar has more <br />outdoor advertising experience and financial resources than Adams. Lamar appears to be <br />more than capable of continuing the monthly payments to the City under the initial <br />Promissory Note and supplemental Installment Note. <br />Staff also contacted the United States Attorney's office regarding the existing legal actions <br />involving billboard issues within the City, in order to determine whether any potential <br />indictments might surface against Adams or its officials which might affect the City <br />Agreements. The U.S. Attorney's office informed Staff that no indictments have been or <br />are in the process of being issued as to Adams or its officials. <br />Based on the above information, Staff recommends that the City Council give its formal <br />consent to the assignment of the City Agreements with Adams Advertising, Inc. to Lamar <br />Advertising Company. <br />Taking no action will not prevent the sale and transfer between Adams and Lamar. <br />However, in the absence of a formal consent from the City, Adams may seek legal action <br />to obtain a court determination on this matter. Therefore, to avoid unnecessary legal <br />entanglements, we believe it is in the City's best interest to give its formal consent to this <br />transaction and approve the assignment of the City Agreements as explained above. <br />ALTERNATIVES: <br />Deny approval of the assignment of City Agreements with Adams Advertising, Inc. <br />to Lamar Advertising Company. <br />Take no action. By taking no action, Adams Advertising could seek legal action to <br />obtain a court determination on this matter. <br />FINANCIAL IMPACT: <br />No financial impact to the City is anticipated. <br />ENVIRONMENTAL IMPACT: <br />No environmental impact to the City is anticipated. <br />RVPLB\NGS\653521 <br />_2_ <br />