The Montgomery County Council is holding back $2 million for a controversial deal to bring live music to Silver Spring until details on the deal are clarified.
Last month, Montgomery Executive Ike Leggett announced the county had signed a lease with California-based Live Nation, which operates the Fillmore and House of Blues music venues, to take over the site of the old J.C. Penney store on Colesville Road.
The deal included $4 million in county and state funds to create a new music hall in the historic building. The county and state have each pledged $2 million, but council planning committee members said this week that they wanted all land use and zoning details set in stone before they signed off on another $2 million for the project.
“We ought to at least see what those are so we know what we’re dealing with,” Council President Mike Knapp said.
Patrick Lacefield, spokesman for Leggett, said there are some issues that still need to be hashed out between county leaders and the Lee Development Group, which owns the J.C. Penney store property.
“They have to give the land to us, we have to say here are the limits with what you can do with it, that sort of thing needs to be put in writing,” Lacefield said, adding that he does not see the delay in funding as an obstacle to the project’s completion.
Council staff members expressed concern in a written report about the music venue deal, especially that the tenant would be entitled to credit excess construction costs against fixed rent payments.
“I think that it’s not really a problem,” Lacefield said, adding that the county will not be paying for the music venue’s maintenance costs, as in other projects.
“The final state funding decision will be made in Annapolis in April,” Lacefield said. “We feel pretty good about that and pretty good about our support on the council. Their job is due diligence, and that’s what they’re doing in waiting for the details.”
Some council members, including new Planning, Housing and Economic Development Chair Marc Elrich, complained last month that the county should have issued a request for proposals, opening up the process for bids and competition from other interested parties before signing a letter of intent with Live Nation.
“I still have those questions,” Elrich told The Examiner Wednesday. “I wish there was more money and less vulnerability in this for the county.”
