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I'm sure they're going to try to get around any local regulation by saying they are an aircraft with FAA approval in public airspace. Cities will have to make sure that zoning authority extends 500-1000 feet in the air. Its the next evolution of blimps and airplanes pulling banners.
I remember about 10 years ago that some company was working of making artificial clouds that could be shaped like logos and float for a day or two.