9:30 Club Sues Over Subsidies for Planned Live Nation Venue in Silver Spring

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/17/AR2010061705333_pf.html

9:30 club sues over subsidies for planned Live Nation venue in Silver Spring

By Miranda S. Spivack
Washington Post Staff Writer
Thursday, June 17, 2010; 7:34 PM

The owner of the District's 9:30 club is suing to prevent Maryland from giving Montgomery County $4 million to help build a music venue in downtown Silver Spring, saying government officials are hiding the project's real costs.

Live Nation, a major force in the music business with artists such as U2, Madonna and the Eagles, would rent out the venue on Colesville Road and hold rock-style concerts for about 2,000 standing patrons. Ground is expected to be broken this year on what will be known as Fillmore Silver Spring.

The lawsuit against the state, filed this week in Anne Arundel County Circuit Court by the club's parent company, IMP Inc., and that company's co-owner Seth Hurwitz, challenges the state subsidy for the project; Montgomery County is also spending $4 million in county funds. The suit says state officials would be breaking the law by paying the subsidy because Montgomery has provided only "skimpy" information about the project's costs, despite requirements by the General Assembly for more information.

"It's bad enough they're laying off teachers, cutting budgets and expecting everyone else to make sacrifices at the same time they're spending $8 million to build a rock club, but the least the government can do is follow the law in the process," Hurwitz said.

A spokesman for Montgomery County Executive Isiah Leggett (D) disputed the claims and said the county has "met the conditions" required by the General Assembly, which also has been affirmed in writing by the chairmen of the budget and appropriations committees.

Hurwitz, whose company also books acts for Merriweather Post Pavilion in Columbia and Rams Head Live in Baltimore, has questioned the deal before. He says Montgomery officials should have put the operating agreement out to bid instead of privately negotiating with Live Nation after a deal with the Alexandria-based Birchmere went sour. He also has said his company could create a music venue in Silver Spring without public funds.

The Live Nation deal, crafted by the Leggett administration, would be the first for-profit arts venue to receive direct subsidies in Montgomery.

The arrangement, approved by the County Council, compels Montgomery to absorb any cost overruns, which have occurred before in county construction of arts venues.

During the administration of County Executive Douglas M. Duncan (D), the $100 million Music Center at Strathmore was $50 million over projections; there were also overruns at the American Film Institute and the Round House Theatre, both in Silver Spring. In most instances, public funds made up the difference in the overruns for those nonprofit ventures.

In the Live Nation deal, Montgomery will own the building and rent it to Live Nation for $7,500 a month. Live Nation is to spend about $2 million outfitting the inside of the hall, and will pay for maintenance and utilities. Lee Development Group will donate the former J.C. Penney facade and land, worth about $3.5 million. The county also has promised to loosen liquor laws to allow Live Nation to serve alcohol and light fare prepared off site.

Lee Development would retain rights for more than a dozen years to build on the remainder of the property, more than twice the usual time. The developer also was allowed to count the Live Nation building as its required public space.

This week, another county-subsidized arts venue, the art deco Bethesda Theatre, foundered and was put on the auction block. It had undergone a $12 million renovation as part of a deal with Bozzuto Group, which included state and local tax breaks, and a $2 million county economic development grant that was paid through a nonprofit group.

Oh I just love rock-style concerts!

especially subsidized ones!!!

(not that i'd expect shows at this venue to be any cheaper than elsewhere)

stop whining.

This has been brought up before but LN have to have donated a handsome amount to Leggett's last campaign.

Didn't Live Nation run Rams Head in Baltimore for a while?  How did that work out?  7500 dollars a month for a venue that size seems pretty cheap.  While it sucks for the 930 club that they (LN) are getting this sweatheart of a deal I don't think they are going to be able to stop it from getting built. 

dosen't leggett have 4 secuirty guards that make $!00,000 a year a piece?  unfortunately this is business as usual for local and state gov't.  they woo corps with tax breaks and other incentives.  $4m is nothing.

let's see . . . a larger, "better" venue that will be able to attract (i mean force) bigger acts as well as the normal mixture rotation and will have an appealing parking situation as well as be in a neighborhood/area that could more than likely not get you shot at on any given, early evening as well as attracting a more (where more is the key word) diverse crowd who normally would not want to travel into dc . . . than yeah, if i were seth i'd be fighting it all the way to the stiffest arm of the competition.

walkonby wrote:
let's see . . . a larger, "better" venue that will be able to attract (i mean force) bigger acts as well as the normal mixture rotation and will have an appealing parking situation as well as be in a neighborhood/area that could more than likely not get you shot at on any given, early evening as well as attracting a more (where more is the key word) diverse crowd who normally would not want to travel into dc . . . than yeah, if i were seth i'd be fighting it all the way to the stiffest arm of the competition.

I agree!

Sad thing is I wish this Silver Spring LN venue would open yesterday! What do I care about the taxpayers of Silver Spring? If they don't care…..

The area needs a venue like the Fillmore and IMP won't build it cause they prefer to keep booking shows at DAR..

dar isnt that bad. the seats could use some major upgrading and it would be nice if you were allowed to eat/drink in the hall. would also help if they had multiple concession stands.

if someone did build a build something like fillmore, where in the city would it go?

It's kind of puzzling why this is getting subsidized.  It's not like Silver Spring is a depressed neighborhood in need of life support.  This is a pretty good example of how subsidies to some businesses hurt other ones that have built themselves on hard work alone…  Seth is right to sue.

^ Doomie, I am with you 100%!!! That means I'm 100% with you too Seth.

You can argue all you want about whether this is more of a business move for Seth; and I have no doubt, as a good business man, that is, in part, the case; but there is definitely much, much more involved with this than Seth's pockets. It's also about the citizens and tax payers pockets!

Whomever said above that they couldn't care less about the tax payers is yet another example of that appalling narcissism of so many that allows for so many of our corrupt leaders to continue to use and abuse we, the citizens and tax payers, to their advantage. The very same frozen souls who, while walking down the street and see poor Walkie getting shot, will totally ignore what's happening and just move on. Who cares? It's not 'their' life! Absolutely disgusting! If they do it so easily to one county, they will have no problems pulling some similiar scam on another. If your neighbors have roaches, they are bound to find their way into your home. Very same with dirty politicians and the kinds of tricks they have up their sleeves that go deep within our pockets.

I'm all for the Arts but, let's fact it, this isn't about the Arts. This is some sleazy lovefest between Leggett and Live Nation and we, the public, are the ones getting screwed.

haha, I like how you are able to throw a walky reference into your argument  ;D

hutch wrote:

walkonby wrote:
let's see . . . a larger, "better" venue that will be able to attract (i mean force) bigger acts as well as the normal mixture rotation and will have an appealing parking situation as well as be in a neighborhood/area that could more than likely not get you shot at on any given, early evening as well as attracting a more (where more is the key word) diverse crowd who normally would not want to travel into dc . . . than yeah, if i were seth i'd be fighting it all the way to the stiffest arm of the competition.

I agree!

Sad thing is I wish this Silver Spring LN venue would open yesterday! What do I care about the taxpayers of Silver Spring? If they don't care…..

The area needs a venue like the Fillmore and IMP won't build it cause they prefer to keep booking shows at DAR..

I would much rather see a band at DAR than the Fillmore.  I just wish IMP would go back to booking acts at Warner which was a great place to see bands. 

Jaguar,

First of all your post is very insulting.. you ought to tone it down a notch buddy or stay off the sauce.

I'm sorry but in a democracy the local residents elect their local government and it decides what they want to do.. if they want to bring in the Fillmore and give the company a subsidy thats  their prerogative

The idea that Seth is battling Live Nation on behalf of taxpayers is utterly laughable. This is the same Seth who runs around quoting Ayn Rand left and right

He is basically saying he wants a level playing field and I respect that but at the same time as a concertgoer who feels DC is lacking a midsized rock concert venue I want the venue and if IMP will not build it and somebody else wants to I'm fine with that..

Lets keep things in perspective, if Silver Spring wants a rock venue and they make a deal on the side its not the first time this has happened…

Where is Seth's outrage about numerous subsidies? I don't see him suing over Bens CHili Bown subsidies which have been sizable, etc. What about the Lincoln Theatre? He doesn't sue about that.. no, he's actually happy to book shows there- a venue that arguably would not exist where it not for subsidies. I could come up with dozens of examples.

Ultimately, IMP wants to prevent the FIllmore from opening as long as possible- thats what this is all about and not about the taxpayers…

As a consumer of live concerts I want the FIllmore to open… I assume the residents of Silver Spring can run their own affairs.

Of course I think Seth has every right to sue but lets not kid ourselves as to the motive

atomicfront wrote:

hutch wrote:

walkonby wrote:
let's see . . . a larger, "better" venue that will be able to attract (i mean force) bigger acts as well as the normal mixture rotation and will have an appealing parking situation as well as be in a neighborhood/area that could more than likely not get you shot at on any given, early evening as well as attracting a more (where more is the key word) diverse crowd who normally would not want to travel into dc . . . than yeah, if i were seth i'd be fighting it all the way to the stiffest arm of the competition.

I agree!

Sad thing is I wish this Silver Spring LN venue would open yesterday! What do I care about the taxpayers of Silver Spring? If they don't care…..

The area needs a venue like the Fillmore and IMP won't build it cause they prefer to keep booking shows at DAR..

I would much rather see a band at DAR than the Fillmore.  I just wish IMP would go back to booking acts at Warner which was a great place to see bands. 

Well, I assume SOUND Is not important to you then… I have trouble relating to someone who doesn't prioritize quality of sound when it comes to concerts but there's all kinds of people out there and everyone is entitled to their opinion. DAR is not a concerthall and has substandard sound and sight lines for most people.

hutch wrote:
Jaguar,



Of course I think Seth has every right to sue but lets not kid ourselves as to the motive

So he can keep charging 7 bucks for  a Miller Light? 

I have heard say he has kept bands from playing Baltimore.  Which I think is BS.  They are seperate markets.  And bands who play the 930 club should be able to play Baltimore as well.  I guess now that they are booking bands at Rams Head less of this is happening but there are still bands that could play Baltimore and play the 930 club and not Baltmore.  I assume this Seth keeping them out? 

live nation owns warner(?)

hutch wrote:

atomicfront wrote:

hutch wrote:

walkonby wrote:
let's see . . . a larger, "better" venue that will be able to attract (i mean force) bigger acts as well as the normal mixture rotation and will have an appealing parking situation as well as be in a neighborhood/area that could more than likely not get you shot at on any given, early evening as well as attracting a more (where more is the key word) diverse crowd who normally would not want to travel into dc . . . than yeah, if i were seth i'd be fighting it all the way to the stiffest arm of the competition.

I agree!

Sad thing is I wish this Silver Spring LN venue would open yesterday! What do I care about the taxpayers of Silver Spring? If they don't care…..

The area needs a venue like the Fillmore and IMP won't build it cause they prefer to keep booking shows at DAR..

I would much rather see a band at DAR than the Fillmore.  I just wish IMP would go back to booking acts at Warner which was a great place to see bands. 

Well, I assume SOUND Is not important to you then… I have trouble relating to someone who doesn't prioritize quality of sound when it comes to concerts but there's all kinds of people out there and everyone is entitled to their opinion. DAR is not a concerthall and has substandard sound and sight lines for most people.

sightlines are better at dar than they are at filmore…especially if you are short

Everyone seems to have missed what I think is the biggest point:

The county/state will cover all cost overruns.  Looking at past projects, this could be quite a large number.  Is Strathmore cost $150 million, $50 million over, how do we feel that they got the costs right on this one?  $4 million seems low for renovations and building up, I could see it shoot up, and as a Maryland taxpayer, I might well have to pay.