Montgomery County Executive Ike Leggett’s administration quietly devoted an extra $3.3 million to pay for the Fillmore music hall, a massive, taxpayer-subsidized rock club slated to open next year in downtown Silver Spring, The Washington Examiner has learned.
County Council members Thursday said they were stunned upon learning the $8 million price tag grew to more than $11 million and that the executive branch already slated leftover money from construction projects in the county’s recreation budget to cover the new charges.
“We’ve got better uses for the money,” said Councilman Marc Elrich, D-at large. “It’s just a massive subsidy.”
A letter obtained by The Examiner shows executive officials received a final budget for the project two weeks ago — after the County Council and Planning Board already approved the project despite criticism about devoting millions in public money to a music hall run by a private company, Live Nation Entertainment Inc.
“This transfer is permitted under county law and the use of these transferred Capital Improvement Program funds allowed the county to approve the projected budget submitted by [the developer] and … ensure that construction completion meets the Live Nation opening requirement of September 2011,” wrote David Dise, director of the county’s Department of General Services, to Leggett.
Council members aren’t so sure about the legality of the move.
Councilman George Leventhal, D-at large, requested a closed-door meeting with executive officials to discuss the shift of funds.
Dise’s letter, dated Wednesday, outlines more than $2.66 million left over from recreation projects in the capital budget, such as the White Oak Community Recreation Center, Montgomery Aquatic Center and Upper County Outdoor Pool. An additional $725,000 is expected to be absorbed by Live Nation as part of its lease.
Joseph Beach, director of the county’s Office of Management and Budget, said the increase was to be expected, considering that construction costs have escalated since the last estimate in 2002.
The 2,000-person-capacity club will be operated by Live Nation, a titan in the concert industry.
But the issue is far from resolved. “There’s going to be a battle on this,” said Councilwoman Valerie Ervin, D-Silver Spring.
