Implications For Your Business
The Mayor’s Office submitted the 2018 Management Ordinance on November 8, 2017 for the City Council’s consideration as part of the City of Chicago’s 2018 Budget package. The Ordinance includes amendments to the sections of the Municipal Code Ordinance that regulate the use of signage by businesses (specifically Article 13 of the Municipal Code). The full 2018 Budget was approved on November 21, 2017. If you’re a restaurant owner, these changes will impact how you obtain and retain your signage permits, and also on how you display your signage. The requirements require attention to detail if you are to avoid non-compliance. The penalties for non-compliance remain as they are, but amendments will allow the City to impose the fines on a per day and per offense basis. This means that any delay in bringing your signage into compliance can be very costly to your business in cumulative fines.
New Permit Required For Any Alterations or Changes to Your Signage
What constitutes alterations and changes? The Ordinance amends that part of the Municipal Code that deals with signs, billboards, signboards and related structures by introducing new language into the “definitions” section (Section 13-20-510). It details what it means if you “alter” or “change” any sign or sign structure, and what “alterations” and “change” mean. Under the Ordinance, if you make any of the following changes or alterations, you will need to obtain a new permit:
- Modification
- Relocation
- Reerection
- Conversion from on-premise to off-premise (or vice versa)
- Conversion from static image to dynamic image (and vice versa)
- Conversion in dynamic technology
- Raising or lowering height
- Changing angle
- Adding extensions
- Enlarging dimensions
- Deviating from approved permit drawings or supporting documents
- Changing the address to which the permit applies
Note that changes also define “sign” to include any sign defined as such under the Zoning Code. This is intended to clarify existing law and does not vary it.
Penalties. If you fail to obtain a new permit for any of the above changes to your sign or support structure, you will be in non-compliance. The Management Ordinance 2018 does not change the dollar amount of fines for non-compliance (which can be found in Section 13-20-520 of the Municipal Code). It does, however, seriously magnify the dollar amount of the fines you pay with this change: each day that a violation continues will be taken as a separate and distinct offense. Also, if you’ve had your sign permit revoked, or you did not renew it or your application has been denied, and you continue to display your sign, these penalties will also apply and on the same per day and per offense basis.
Persons responsible. The Management Ordinance also adds definitions on the “owner or lessee of the real property” that relates to your signage. This addition is intended to clarify existing law rather than to change it. The owner or lessee of the real property includes the owner of the real property on which any on-premise or off-premise sign is located or any on-premise tenant (i.e. you, if you lease your restaurant space) who maintains an on-premise sign on that property.
“Owner or lessee of the real property” does not include the owner or lessee of an off-premise sign or account, structure or account, or the lessee of air space or exterior wall space for an offpremise sign. In short, anyone whose sign is off-premise is not subject to this definition. Note that the definitions for “on-premise” and “off-premise” signage are those in the Zoning Code (Section 17-17-02108 of the Municipal Code).
If, however, as a lessee (tenant) you offer space for advertising, you’ll fall under the definition of “owner or lessee of real property”. This means that you can be held to the requirements and penalties above even if the sign is not yours, but to a third-party who you offer the space to for their advertising. The Ordinance goes even further – not only are you as owner or lessee responsible for any on-premise signage of your own, you will have to ensure that your advertisers secure a permit as well. The City can impose fines on both you (as owner or lessee) and on the advertisers for any failure to obtain permits for their advertisement signage.
Changes to Flat Signs (Size & Projection)
The Ordinance decreases the permitted size of your flat signs. Currently, your sign can extend no more than four feet (1.22 meters) above the roof line. This has been reduced to two feet (0.61 meters) under the changes. The new limit applies regardless of whether or not there is a parapet wall; a sign shall not be permitted to be supported from the parapet.
Additional Permit Required For Your Signs That Are On, Over AND Above Public Ways
How it affects you. You’ll need a “public way use permit” when your signage is not just on or over a public way, but above it as well. The definition of “sign” in this set of changes is significant as well – it includes not just your sign but also its structure, mounting device, exterior sign illuminating lightning, monitoring camera and any other apparatus attached or relating to that sign. Failure to renew your public way use permit in a timely manner or obtain it in the first place is grounds for the Building Commissioner to revoke your permits for your signage.
Contractors working on your signage are affected as well. If a general contractor or registered electrical contractor is used to install your signage on, over, or above a public way but has not obtained a public way use permit himself (or itself), the Commissioner can suspend that contractor’s permit privileges under Section 13-8-130 of the Municipal Code. This has serious implications for your contractor’s own business, making it advisable that you work with someone who understands the need to obtain a public way use permit.
Display your public way use permit number. Your off-premise sign that requires a public way use permit must have its permit number permanently and conspicuously displayed on the sign. Permits numbers must not be false or incomplete. Failure to do so would mean fines of between $200 and $500, and each day that a violation continues will be a separate and distinct offense.
Information Updates Required In Your Permit Applications
The Ordinance requires you to report any information “that is different from the information provide in the application for a permit to erect, install or alter any sign” to the Buildings Commission within 10 days of such change. These changes include any change in the permittee of any permit issued on or before May 19, 2012 or the owner or less of the property in any permit issued after May 19, 2012 or the name or contact information of the payer of record for the permit. You can provide notice of such changes electronically (i.e. by e-mail). You’re given 120 days to correct these “deficiencies” in your permit application once you report them, but failure to do so would mean automatic withdrawal of your permit application. You can petition any decision to the Buildings Commissioner. Not that the Ordinance introduces a new possible liability: if you’re found to make a false statement in your permit application or supporting documents, your permit will be revoked, and hefty fines and damages could be levied against you under other sections of the Municipal Code.
Situations In Which Your Permit Can Be Revoked (And How It Affects Your Other Licenses)
The Management Ordinance will eliminate the 5-year term for sign permits and instead authorizes the Building Commissioner to revoke a permit if a sign is erected or altered as follows:
- Without a valid permit
- Contrary to the permit
- Abandoned
- Without a public way use permit
- Loses its nonconforming status
- Fails to display the permit number on or adjacent to the sign
- A false statement has been made on a permit application
Note also that the Ordinance prohibits electrical contractors and general contractors from allowing their name, registration or license number to be used on a sign application, if the firm is not doing the work. Further, it prohibits an electrical contractor from subcontracting any of the electrical work in a sign application.
There are serious implications for your restaurant when you lose your signage permits or fail to obtain them or have them suspended. These include the following:
- No building permit may be issued
- No zoning permit, variance or approval may be issued for a building on that property
- No business license may be issued.
Note also that the Ordinance authorizes the Building Commissioner to rescind any of your sign permits which were issued erroneously approved by any other City department.
You’ll Have To Report And Remove Abandoned Signs And Structures
You’ll have to be vigilant about making sure your signage does not fall into what constitutes an abandoned outdoor sign or structure as defined in the Ordinance. If they are considered as such by the Building Commissioner, then you can lose your permits as well as be liable for the City’s removal costs.
Definitions. The following will be considered abandoned under the Ordinance:
- Any sign that has had no copy on it for six consecutive months
- Any sign attached to a building that describes a business that has not been operating in the building for at least 6 consecutive months or describes a product that has not been sold in the building for at least 6 consecutive months or describes a business that has failed to maintain a business license where it is required
- Any sign for which a sign inspection fee has not been paid and is past due for at least 6 consecutive months
- Any sign for which the permit number is not displayed.
Similar definitions apply for what will be deemed an abandoned outdoor sign structure.
Penalties. The Ordinance enables the Buildings Commissioner to revoke any permits for an abandoned sign, and to remove the sign by deeming it a hazard. The Ordinance can also hold you – as owner or lessee of your space or as the person in control of the sign - liable for all expenses incurred by the department in removing a non-compliant sign. The legislation enables the City to attach a lien to the property until the City has been reimbursed for such expenses in full.
Lastly, you should note that a failure to report an abandoned sign or sign structure (or elements that relate to them) is also grounds for the City to impose penalties. You’ll need to report abandonment within 10 days of it and remove it within 30 days of reporting the abandonment. This applies whether you are the owner manager or other person in charge of the building or property containing the sign and/or sign structure. Note that these are very broad definitions that can include you as the owner or lessee of a restaurant space. Fines can range from $500 to $2,000 per offense, per day of violation and can add up quickly.
City Council Approvals For Very Large Signs
A City Council order is required if your sign is more than 100 feet square in area or any roof or ground sign, structure or signboard over 24 feet in height. You’ll be required to give your Alderman a copy of your complete application for the sign permit, along with a template of the Council order. The Ordinance provides that the clock does not start ticking until you get your complete application to the Building Commission and your ward Alderman. Curiously, the Ordinance removes the requirement that the Building Commissioner must take final action no later than 75 days after the City Council’s order on your application. This will create an element of uncertainty for you.
Non-Compliance Notices to “Responsible Persons”
The Ordinance imposes responsibility on not just owners of a sign but also “responsible persons”, which are defined as follows:
- The permittee of a sign permit issued on or before May 19, 2012 or
- The owner or lessee of the real property on which a sign is located of a permit issued after May 19, 2012 or
- The person in charge, possession or control, if the whereabouts of such person is unknown.
These are very broad definitions. It is conceivable that if an old sign still exists on your leased or owned location from you before began your business, you could be responsible and liable for its removal as the person currently considered in charge or in control of it.
. . . . .
Please Note: This information is not intended as legal or professional advice or counsel. Any local, state or federal rules, regulations or laws summarized are subject to change. You should consult with your attorney, prior to taking action based on the information herein.