Author Topic: 9:30 Club Sues Over Subsidies for Planned Live Nation Venue in Silver Spring  (Read 38491 times)

Bags

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From the real estate blog DCMud:

http://dcmud.blogspot.com/2010/07/baby-steps-made-but-fight-for-fillmore.html

Baby Steps Made, But Fight for Fillmore Music Hall Still Uphill Battle
Posted by Brooks Butler Hays on 7/16/2010 06:58:00 PM
 
Early last month the Montgomery County Planning Board approved preliminary plans for the Fillmore Music Hall and accompanying hotel and office buildings to built in Silver Spring; and just yesterday the Board gave a big thumbs up to the development team's most recent master plan and official plat. But a project that began in a buzz of ho-hum, high-fiving excitement has been slowed by lagging negotiations, and now a lawsuit filed recently by the owner of the 930 Clubthreatens to cast a dark cloud on groundbreaking celebrations set for later this fall.
The recently approved master plan roughly details the impending construction of a 135,300 s.f., 14-story hotel, a 12-story office building (5,500 s.f. reserved for retail use), and a 22,882 s.f., three-story music hall integrating the historic JC Penney facade and sides. The plan also calls for significant improvement to portions of the sidewalk and three street frontages.

Designers claim that the aesthetics of the planned structure fit with the surrounding buildings: standing mostly square, with no tower setbacks or height variance, and no significant differentiation of design or materials above the lower levels. The facade of the planned hotel reflects the fenestration and style typical of the era during which the adjacent Montgomery Arms apartment building was constructed. The JC Penney frontage, soon to be face of the Fillmore Music Hall, will be renovated in hopes of imitating the original San Francisco-based Fillmore West. Sporting dark red walls, vintage rock posters, and crystal chandeliers, the interior will also recall the first Fillmore, with the ability to house a standing room capacity of 2000 people.Hickok Cole Architects will design the new venue, along with the planned hotel and commercial buildings at Georgia Avenue.
The less daunting of the projects, the Fillmore Music Hall, will be constructed first. Upon completion of the building, the land and Music Hall will be donated to the County. Thispeculiar arrangement was part of the negotiationsbetween the County andLee Development Group (LDG) that made this entire $110 million redevelopment project possible. LDG's donation of the Music Hall will qualify as their public-space contribution required for their adjoining hotel and office space project. But the Fillmore Music Hall and its accompanying land (worth $3.5 million) hardly seems like a donation when Montgomery County and the state of Maryland have each agreed to subsidize the project to the tune of four million dollars, leaving LDG to foot only the remaining two of the ten million dollar budget. The transaction will afford LDG 15 years to complete the bordering project under current land use regulations, thereby protecting them from any financial complications or delays that may arise from future zoning rule changes or planning officials' interference. Once in the hands of Montgomery County, the Fillmore will be rented out to worldwide concert promoters and corporate entertainment giant Live Nation (their recent proposed merger with Ticket-master is currently stalled by anti-trust concerns). In 2008 Live Nation signed a $3.26 million, 20-year lease with the County, ending a tiresome six year negotiation process. Drawn out discussions with the Birchmere had previously unraveled.
All this might sound dandy to local concert goers, butSeth Hurwitz and his Bethesda-based companyI.M.G., Inc, which owns the 930 Club and operatesMerriweather Post Pavilion, finds the deal too sweet to be fair. Seemingly threatened by the new competition, and disenfranchised that he was not involved in negotiations for the lease of the new venue, Hurwitz has filed a lawsuit against the state alleging that the proper procedures for conducting financial feasibility and cost analysis studies, as required prior to allocation of funds, were not followed. The State and County believe they've done all that is required, but have not officially responded to the lawsuit. Until the lawsuit plays out, the state of Maryland is prohibited from matching the County's four million dollar pledge, but officials still expect ground to break later this fall, and to open the doors of the Fillmore in the fall of 2011. Local officials contend that the new development will not only be a tremendous new source of tax revenue and profits, as well as provide job creation, but also establish Silver Spring (with the AFI Theater right down the street) as a go-to destination for music, arts, and entertainment.

notme

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it is a 20 yr lease, 930 could take over the lease in 2031.  if you get too f'd up, you can stay at the hotel next door.

Herr Professor Doktor Doom

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I love the biased tone of that blog post...

, high-fiving excitement has been slowed by lagging negotiations, and now a lawsuit filed recently by the owner of the 930 Club threatens to cast a dark cloud on groundbreaking celebrations set for later this fall.
_\|/_

K8teebug

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Does anyone think maybe it's not such a bad thing that there will be a music venue not run by the 930 club in this area?  I just don't get the complaining.

people will still go to the 930 club.  Because it is awesome.

runwhiteyrun06

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Does anyone think maybe it's not such a bad thing that there will be a music venue not run by the 930 club in this area?  I just don't get the complaining.

people will still go to the 930 club.  Because it is awesome.

People are mad because the new building will be heavily subsidized and it is obviously a pet project of some politicians.

I think Seth has a right to try to block the building; it's not fair to the 930 club.

K8teebug

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But it's Montgomery County.  Isn't everything there like that?


azaghal1981

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Precisely. It's more the shady dealings that helped LN gain this contract and the subsidies moreso than anything else. Plus, Seth lives in Montgomery County which means his tax dollars are going directly towards this project and there's nothing he can do about it short of this suit.
احمد

azaghal1981

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Pretty sure this is the first for-profit venture of it's kind that has gotten free money from the government in Montgomery County.
But it's Montgomery County.  Isn't everything there like that?


احمد

Seth Hurwitz

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let me make myself very clear on all of this:

I am not trying to stop anyone from building a venue

I am trying to stop the government from subsidizing it

wml7

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I like how Sethy uses double space  ;D

K8teebug

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Gotcha.  Point taken and agreed.  Thanks for clearing that up.


kosmo vinyl

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It's awesome how they filled in subtle character features of the front.  Its gonna be such a great generic venue
T.Rex

Frank Gallagher

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If you are all so against this....DON'T GO TO SEE SHOWS THERE...

It's not that difficult people.

I have no doubt there's some backroom shennanigans gone on to put this deal together, but politicians are crooks...always have been, always will be. None of us will ever change that so whats the point in whining and complaining about the deal while online looking for the best seats available?

As for Seth - good for him, but I hope he's not wasting time while making his lawyers next 24 boat payments for him...which I'm afraid he probably is.

bearman🐻

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Unless Queens of the Stone Age or the Pixies play there, you can't drag me over there. Although I'm curious about the space, this venue already strikes me as the kind of place the Bayou became towards the end of its life.