Rohnert Park has revived efforts to get a private operator for its Highway 101 digital advertising sign after an earlier attempt went nowhere.

City staff have recommended leasing the 10-year-old sign to longtime Sonoma County businessman Kirk Veale's Veale Investment Enterprises, which would tear it down and build a new one.

A short-lived deal with a Petaluma company, N2 Holdings -- which was supposed to lease and raze it and install a larger one -- was "terminated for nonperformance," City Manager Gabe Gonzalez said Monday.

The City Council is to consider the new proposal tonight.

N2 Holdings, whose representatives could not be reached for comment, was chosen over Veale's firm last year. But with N2's exit, Veale's bid this time won favor over one by Clear Channel Outdoor and a joint bid by Station Casinos and the Federated Indians of Graton Rancheria, who are building a casino outside the city's northwest edge.

Veale's offer was considered the best because he has the most experience in the Sonoma County marketplace, said John McArthur, director of public works and community services, in a staff report.

"It's an opportunity for the city to create revenue," Gonzalez said.

Veale Enterprises wants to lease the sign for $180,000 a year plus 20 percent of annual net revenue over $900,000. It would also make a one-time payment of $50,000 plus $5,000 a month during construction.

The offer is based on using two sides of a new, single sign, rather than four sides of two new signs, which the Station Casinos' bid envisioned. That made Veale's offer the most remunerative, city staff said.

Veale's firm, if its offer is approved, would still have to submit its new sign to design and planning reviews and the permitting process.

The city spends about $50,000 a year on the sign, the installation of which was paid for by the Dorothy Spreckels Performing Arts Center endowment.

You can reach Staff Writer Jeremy Hay at 521-5212 or