I.M.P. vs. Live Nation: 9:30 Club Owner Serious About Silver Spring; Detailed Counter Offer(s) Enticing to Mitigate County/State Costs (Updated)
By Silver Springer • Nov 6th, 2007 • Category: Arts, Food and Entertainment, Business and Economic Development, Government and Politics, Real Estate
In a letter sent to the County Executive Isiah Leggett’s office, Seth Hurwitz presents an offer Montgomery County will find hard to refuse.
It’s My Party Inc (I.M.P.) and Chairman Seth Hurwitz who proclaims himself as a life long resident of Montgomery County states,
“We believe your reputation as a fair-minded decision maker entrusted with carefully spending taxpayer dollars suggests you would want to be apprised of an industry-leading, locally based company that shares your goals of making that property a luminous destination for music lovers, a magnet for other businesses, and the pride of Montgomery County.
Simply put, I.M.P. can provide a superior music venue at a dramatically reduced cost to the taxpayer.”
I.M.P. owns and operates the 9:30 Club which “is the most successful club in the nation, selling more tickets per year than any other club venue, according to industry trade institution Pollstar.” as stated in the letter.
It  also took over the Merriweather Post Pavilion in Columbia back in 2003 after the risk of closure.
Futher more the firm is responisble for concerts at Strathmore, Meyerhoff Symphony Hall in Baltimore and launching the new Virgin Festivals at Pimlico Race Course in Baltimore.
I.M.P. believes it’s counter offer is the most economically efficient.
“As shown in the attached “Outline of Venue Concepts and Issues,” we believe the terms of I.M.P.’s proposal offer a superior musical experience for Montgomery County at far less cost to the County and the State. As a proven and successful locally based operator, IMP. will be a desirable, reliable and responsive partner for the County and its citizens in the continuing
revitalization of Silver Spring.”
Some details of the counter offer include,
- 1,400 maximum capacity
- 32,000 square foot facility
- Public amenity and community use
- A 20 years lease estimated from May 2010 with two five year renewal options
- With a $2 million contribution the County/State Subsidy would be reduced from $8 million to $6 million
- I.M.P has the right to purchase the music hall for $10,000,000 or 75% fair market value (which ever is greater) after the States capital investment requirement has expired Â
Additional Counter Offer: Alternative Purchase Transaction
“As an alternative to leasing the Silver Spring Music Hall property from the County, I.M.P. is willing to negotiate with the current landowner to acquire the property directly, or through the County, in exchange for l.M.P.’s covenants to construct and operate the Silver Spring Music Hall as a performing arts facility consistent with the foregoing provisions. For the sake of clarity, if this Purchase Alternative is accepted, there would be no requirement of County or State funding in connection with construction, and therefore no rent or naming rights royalties would be accorded to the County. I.M.P. would commit to the same community uses, including rent-free community uses as specified above. Purchase and other above commitments would remain conditional on liquor licensing and truck/bus access as per the above, as well as certain standard real estate purchase contract conditions, including as to adequacy of title and the securing of building permits at the 1,400 person capacity.”
Included in both offers, I.M.P would hold “regularly scheduled meetings” with the community to get input on what acts they want to see play at the music hall.
The firm also came up with a I.M.P. vs. Live Nation chart outlining the “Pros and Cons” of the offer,
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It’ll be a handy letter for those Live Nation negotiations, I’m sure. But I kinda doubt they’re just going to drop LN on the floor for the 9:30 Club, not when things are this far along.
I hope Leggett ends negotiations with Live Nation. The 9:30 Club’s deal is clearly a better deal for the county and it’s a local business with a proven track record.
Plus Live Nation just got indicted for price fixing in a massive class action lawsuit. Leggett wants to give taxpayer money to alleged criminals??!? I sincerely hope not!
Now that’s how business is done. I vote for I.M.P. Especially since it’s local. They have the pulse of the region’s music tastes. Live Nation might force theirs down our throats.
No doubt about it — a local, successful, proven business is much more exciting than having the gorilla move in.. Go IMP. Leggett — are you listening to those that elected you?
Can the county back out of the LN deal at ths point? If they can, I say they go for it. Financially, this seems to be a better deal. I just dont want to see IMP succumbing to the pressures of the folksy and blah music. I want to have the good acts that are often at the 9:30 club and Merriweather too.
What are the downfalls of IMP?
The problem with just moving to IMP is that it makes the county look wishy-washy and indecisive. Now, given the county is already run by Democrats, I’m not sure how much worse their image in that area could be (I kid! I kid!), but at some point, the decision needs to be made, and something needs to get built. Otherwise, we’ve got another Purple Line situation, where the County does nothing under the weight of all the options.
If Leggett can screw over the Birchmere and deliver a slap in the face to the local citizens who supported it, he can screw over Live Nation. While I’m not privy to any contracts or agreements between MoCo and Live Nation, I have yet to see a contract which cannot be unilaterally terminated. MoCo may have to pay some sort of damages to Live Nation, but at this point Live Nation has not begun construction or otherwise poured serious money into the Fillmore, so those damages should be minimal.
I cannot wait to vote against Leggett when he runs for reelection.
What the hell are you guys smoking? If IMP was serious they would have made an offer a LONG time ago, not now that it’s too late. They _ucked up and now realize they’re going to get screwed. The competition will be great for Silver Spring and terrible for IMP. If the county executives were to backtrack IMP would treat Silver Spring like an ugly stepchild. Either way, do you think Live Nation’s lawyers would let the county off the hook?
I am with rd on this one. Listen, I love going to the 9:30 Club and I think Seth Hurwitz has a done great job providing good musical talent in the Washington, DC area. In the end, I really wished Hurwitz and IMP got that space in downtown Silver Spring instead of Live Nation. But he is a day late and a dollar short with his proposal. A deal between MontCo and Live Nation is already in the books. A DEAL IS A DEAL!
If the County were to back-track on the Live Nation deal and sign with IMP for the former JC Penney space, this would be a terrible setback for the County government. You think other businesses from around the country are going to think twice about investing in Montgomery County? You bet. When local governments stab business partners in the back, word gets around real quickly. I wonder if the head of the MontCo Chamber of Commerce is ready to jump out his window? I voted for Ike but I am having regrets already.
MoCo has a nonbinding agreement with the Fillmore. Ergo, this agreement can be terminated. Moreover, if another business feels it can make money with the county, it will do so.
Looks like the IMP deal is better for MoCo. That’s $2 million back to the county for schools and police and if they buy the site another $10 million. Leggett screwed us over with the greedy Live Nation. The worlds largest in the industry is trying to get a taxpayer subsidy for something it could build on its own. I say we cut the live nation subsidy by $2 million and build both IMP and Live Nation. That would Rock Silver Springs
Leggett wake up and open your eyes! We promise we wont call you “wishy washy” like they did to Kerry.
I have to agree with IHY (probably a first) but at this point, the deal with LiveNation should stand. While I’d prefer having the 9:30 club there, seems like Mr. Hurwitz’s newfound interest in the space and his claim of being a longtime Montgomery County resident is a little disingeneous, as he didn’t step-up except when he realized that a corporate competitor with deeper pockets might potentially jeopardize his market-share.
very interesting, but I don’t agree with you
Idetrorce