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KLMNO Live Nation deal’s rising cost hits a sour note
Some Montgomery council members think money is ill spent
by Miranda S. Spivack It was a deal like no other in
Montgomery County. The plan crafted by County Ex-
ecutive Isiah Leggett (D) to bring the entertainment company Live Nation to Silver Spring, pitched as a way to help its struggling downtown, included $8 million in state and local aid. There were special exemptions from zoning and design rules for the developer of the rock venue; a promise that the government would cover most increased con- struction costs, $80,000 in an- nual tax breaks for Live Nation and a chance for the company to profit from naming rights and rentals on what eventually is to be county-owned property. But in a lawsuit filed in June by
Seth Hurwitz, co-owner of the District’s 9:30 Club, a Live Nation competitor, who said he would pay his own way in Silver Spring, Montgomery officials disclosed new information about how much the project is expected to cost the public: $11.2 million, not the $8 million they had repeated- ly promised. The lawsuit alleges
that county officials were deliber- ately hiding information about costs. Word of rising costs for the
project, which will be known as Fillmore Silver Spring, comes a few months after the County Council and Leggett had ap- proved the jurisdiction’s first spending cuts in 40 years. There have been layoffs and furloughs of government employees and unpopular reductions in parks, recreation and school spending. Soon, voters will turn out for the Sept. 14 Maryland primaries. Leggett faces no opposition, but several County Council members have challengers. “We could have spent the mon-
ey on something else,” County Council member Marc Elrich (D- At large) said Monday. Elrich had questioned the deal when it was approved by the council two years ago. (Nancy Navarro, D- East County, was not a council member at the time). The additional $3.2million will be borne by taxpayers be- cause the county’s agreement with Live Nation and the Lee family, which owns the site on Colesville Road, requires Mont- gomery to either pay the extra funds directly from its treasury or allow Live Nation to front the money and reduce its $90,000 annual rent. Most of the money is coming from county projects that
Officer shot by own gun in tussle at D.C. store
A
n off-duty D.C. police officer working a security detail in a Northeast Washington Home Depot was grazed in the elbow by a shot from his own
weapon Monday during a scuffle with a shoplifting suspect, according to D.C. police spokeswoman Tisha Gant and a store manager. Police arrested a suspect in the incident about 11:45 a.m. inside the store at 901 Rhode Island Ave. NE, authorities said. Police did not name the suspect or the officer, both of whom were taken to a hospital, and did not disclose their conditions. — Mary Pat Flaherty
came in under budget, county of- ficials said. Live Nation is paying $2 million to outfit the inside of the building.
Groundbreaking for the Live
Nation project is scheduled for Sept. 2. Bruce Lee, of Lee Devel- opment Group, did not return calls seeking comment. Leggett administration offi-
cials say the project is crucial for downtown Silver Spring. “Yes, the costs are higher, but it is still a very good deal for the county,” said Diane Schwartz Jones, a top Leggett aide who, along with Chief Administrative Officer Timothy Firestine, prom- ised the council two years ago that the price tag would not rise. Schwartz Jones said the actual
“hard costs” to construct the building remain around $8 mil- lion, she said. “This project brings a highly successful first-class entertain- ment venue to Montgomery County,” she said. It’s not the first time a county
arts project has ended up costing more than projected. When Montgomery built the nonprofit Strathmore’s music center sever- al years ago, it came in about 100 percent over original esti- mates of $50 million to $60 mil- lion. The public paid most of the $100 million.
But the Live Nation deal, which helps a for-profit enter-
prise, continues to trouble some council members. Some bloggers have dubbed it “corporate wel- fare.” “It is wrong. When something
goes this bad and you have not closed the deal, I think you have an obligation to open it up again, and pay what a real organization should pay for space like this,” said Elrich, who said there were opportunities for the county to get a better deal from Live Nation two years ago. “When we are cutting critical
services to be giving $7 million in county funds to this monopolist, I just feel that is not in the public interest,” said council member Roger Berliner (D-Potomac, Bethesda). As part of the agreement, the
project was not competitively bid under normal county rules. When the Live Nation building is completed, the Lees will donate the land underneath it to the county, and the county will own the building. The Lees also secured exemp- tions from many planning de- partment rules for development on adjacent property. Council President Nancy Flo- reen (D-At Large) decided the council will not enter the fray. She said Leggett should have come back for an amendment to approve the increased spending, which Schwartz Jones disputed.
“The council needs to be
briefed. We know nothing,” coun- cil member Valerie Ervin (D-Sil- ver Spring) said Monday. She is worried about rising costs as well as the impact on downtown Sil- ver Spring. Until the Live Nation project,
Montgomery funded only non- profit arts and entertainment or- ganizations, usually by construct- ing their buildings, acting as their landlord and making grants to keep them afloat. As with nonprofit arts and en-
tertainment groups Montgomery has supported, the county plans to allow Live Nation to lease the venue to others and keep the rent money, which could be about $6,000 a night. Live Nation would provide about 36 more nights a year at a reduced rent to community groups. The county could use the hall at a reduced rental rate or for free. Live Nation would donate $30,000 annually to a downtown Silver Spring fes- tival. The proposal is similar to a
plan crafted during the adminis- tration of former county exec- utive Douglas M. Duncan (D) to try to attract the Birchmere mu- sic hall to Silver Spring. But that deal fell apart as the Lees grew frustrated with the Birchmere and began to look for another partner.
spivackm@washpost.com
TUESDAY, AUGUST 24, 2010 LOCAL DIGEST VIRGINIA
Liquor ad ban in newspapers appealed The ACLU of Virginia asked the
U.S. Supreme Court on Monday to review a federal appeals court rul- ing that upholds a statewide ban on alcohol-related ads in college newspapers. The Virginia Alcoholic Bever-
age Control Board prohibits stu- dent publications from publish- ing ads for beer, wine or mixed drinks unless the ads are in the context of promoting a dining es- tablishment. Even then, the ads cannot list alcohol brands or prices. The ban has been challenged by
the Cavalier Daily at the Univer- sity of Virginia and the Virginia Tech Educational Media Co., which owns the Collegiate Times. Both parties say they could lose about $30,000 a year because of the ban. The American Civil Lib- erties Union of Virginia is repre- senting the two.
—Jenna Johnson THE DISTRICT
Police investigate man’s fatal shooting D.C. homicide detectives were
investigating the fatal shooting Sunday of Michael M. Wilson in the 4200 block of South Capitol Street SE, police said. Officers called to the scene found Wilson, 47, suffering from gunshot wounds about 6:30 p.m. Wilson lived on the block where he was shot. He was pronounced dead at a local hospital. —Mary Pat Flaherty
MARYLAND
Woman raped at senior living center Montgomery County detectives
GERALD MARTINEAU FOR THE WASHINGTON POST An off-duty police officer and a shoplifting suspect were injured in a scuffle at a D.C. Home Depot. 850 Montgomery County
Trustee Sale Notices 850 Montgomery County
TRUSTEE'S SALE
Trustee's Sale of valuable fee simple property improved by premises known as 3814 BEL PRE RD, Silver Spring, MD 20906. By virtue of the power and authority contained in a Deed of Trust from DORIS C. DE PAZ-PINEDA, dated September 30, 2005, and recorded in Liber 31056 at Page 001 among the land records of the COUNTY OF MONTGOMERY, in the original principal amount of $164,000.00 with an interest rate of 6.375% . Upon default and request for sale, the undersigned trustees will offer for sale at public auction at the front of the Courthouse for the COUNTY OF MONTGOMERY, 50 Maryland Avenue, Rockville, Maryland, on September 8, 2010 at 11:10 AM, all that property described in said Deed of Trust including but not limited to:
Unit numbered 3814/4 in a condominium styled "GRAND BEL MANOR CONDOMINIUM" as per plat thereof recorded in Condominium Plat Book 16 at plat 1629 through and including Plat No. 1640, among the Land Records of Montgomery County, Maryland. Being part of the land and premises declared to be subject to a Condominium Regime by a certain Declaration dated December 24, 1975 and recorded December 30, 1975 in Liber 4733 at Folio 82, and amendment to the Condominium Declaration recorded in Liber 4741 at Folio 694, among the Land Records of Montgomery County, Maryland. Subject to the easements, covenants, restrictions, assessments, charges and other provisions contained in the Dec- laration and annexed by-laws of GRAND BEL MANOR CONDOMINIUM dated December 24, 1975 and recorded in liber 4733 at Folio 82; and the Amendment to the Condominium Declaration recorded in Liber 4741 at Folio 694, among the Land Records of Montgomery County, Maryland. TOGETHER with the appurtenances and advantages thereunto pertaining and specially including an undivided percentage interest in the common ele- ments of said Grand Bel Manor Condominium as described in said Declaration, by-laws and plats.
Said property is in fee simple and is improved by a dwelling and is sold in "as is condition" and subject to all superior covenants, conditions, liens, restrictions, easement, rights-of-way, as may affect same, if any.
TERMS OF SALE: A deposit of $16,400.00 cash or certified funds shall be required at the time of sale. The balance of the purchase price with interest at 6.375% per annum from the date of sale to the date of payment will be paid within TEN DAYS after the final ratification of the sale. Adjustments on all taxes, public charges and special or regular assessments will be made as of the date of sale and thereafter assumed by purchaser. If applicable, condominium and/or homeowner association dues and assessments that may become due after the time of sale will be the responsibility of the purchaser. Title examination, conveyancing, state revenue stamps, transfer taxes, title insurance, and all other costs incident to settlement are to be paid by the purchaser. Time is of the essence for the purchaser, otherwise the deposit will be forfeited and the property may be resold at risk and costs of the defaulting purchaser. If the sale is not ratified or if the Substitute Trustees are unable to convey marketable title in accord with these terms of sale, the purchaser's only remedy is return of the deposit. Trustee's File No. 10-176135P. 329610V LOAN TYPE = Conventional.
John S. Burson,William M. Savage, Gregory N. Britto, Jason Murphy, Kristine D. Brown and ErikW. Yoder, Substitute Trustees.
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Family dispute over property at center of fatal shooting in Va.
louisa, va. — A man involved in a dispute with family mem- bers over property and belong- ings opened fire Sunday in a ru- ral central Virginia neighbor- hood, killing two people and wounding four before police fa- tally shot him, authorities said. P.T. Spencer, a member of the
Louisa County Board of Supervi- sors, said Monday that gunman Charles Sponaugle and two other family members had been in an ongoing dispute over a 11
⁄2 Sponaugle -acre
lot after Sponaugle’s mother died without leaving a will. “We’ve had problems with
them,” Spencer said of Sponau- gle’s family. He estimated the property was worth “$25,000, if that. It’s just insane.” The shooting began about 5 p.m. at a mobile home outside
the town of Louisa, said county sher- iff ’s Maj. Don- nie Lowe. Of- ficers killed the man and a pit bull that they say he unleashed on them. No offi-
cers were injured, Lowe said. Officials had not released the
victims’ identities. The wounded, including one who had life-threatening inju- ries, were taken to the University of Virginia Medical Center in Charlottesville, Lowe said. A hos- pital spokeswoman didn’t return a phone message Monday. —Associated Press
are transported between facilities by bus. Army officials say they think passenger rail is safer, Fort Lee spokesman Keith Desbois said. “We wanted to find a way to say yes [to the Army’s request], and we did,” VRE Board Chairman Paul Milde said. “Taking these sol- diers off the crowded highways makes sense, and we want to help the Army with its mission.” Army officials approached VRE this year, looking for equipment to move soldiers about 37 weeks a year. If the Army makes the pur- chase, it would limit VRE from ex- panding service until 2015 but wouldn’t affect service now, VRE spokesman Mark Roeber said. Because VRE’s decision came
only Friday, Desbois said it is too soon to know whether the Army will accept the equipment. Army officials need to look at all factors before determining any further action, he said. The selling price VRE has pro-
posed is on the low side, Roeber said, because of the age of the equipment and the fact that VRE bought the railcars for $1 each from Chicago’s commuter-rail sys- tem. The rail cars were 40-plus years old when bought, and it would cost VRE several hundred thousand to dispose of the cars. Roeber said that VRE has 30
old railcars it plans to replace but that the rail agency can dispose of only 10 now to ensure that enough backup equipment is available. Zehner plans to bring a motion to the VRE board next month to begin the procurement process for 30 new rail cars. Once those are purchased, VRE can sell the other 20 rail cars, Roeber said. VRE recently added a new loco- motive to its fleet and plans to add 18 more by 2012 at a total cost of about $77million. The locomo- tives will replace aging freight units that VRE brought more than a decade ago when it began offering service.
buskej@washpost.com
were investigating a rape that oc- curred Saturday at the Churchill Senior Living Center in German- town, officials said Monday. About 4:15 a.m., officers re- sponded to a “Life Alert” call from the center on Father Hurley Boulevard. They learned that an 86-year-old resident had been the victim of a physical and sexual as- sault, police said. A male suspect came in through an unlocked window, ac- cording to a preliminary investi- gation. The victim was in bed at the time. The suspect fled out the window. The woman was treated at a hospital for injuries that were not life-threatening, police said. —Dan Morse
850 Montgomery County VRE can sell rail equipment to Army
Off-duty officer shoots man at club
An off-duty Seat Pleasant police
officer working security at a For- estville night club shot a man who was reportedly reaching for a handgun on the floor of a sport- utility vehicle early Saturday, au- thorities said Monday. The incident occurred about
4:30 a.m. in the parking lot of the CFE club in the 7700 block of Marlboro Pike, said Maj. Andrew Ellis, a Prince George’s County po- lice spokesman. He said that the officer was working with others to clear the club parking lot when he heard a gunshot and that he was directed to a Chevrolet Tahoe. As one person was getting out of the SUV, the driver appeared to reach for the floor, Ellis said. The officer fired his weapon, striking the driver in the leg, Ellis said. He said police later recovered a 9mm pistol from the floor of the vehi- cle.
Ellis declined to identify the of-
ficer, saying that his name would have to come from the Seat Pleas- ant department, which would ex- plore whether the officer acted in accordance with department pol- icy. The Seat Pleasant police chief and the town’s mayor did not re- turn phone or e-mail messages seeking comment. Police identified the driver as
James W. Speaks, 27, of Temple Hills and the man who was get- ting out as Demiyal C. Edwards, 22, of Camp Springs. Court rec- ords show that both were charged with having a handgun in a vehi- cle and reckless endangerment. The records spell Edwards’s first name “Demyial.”
—Matt Zapotosky
Police seek driver in fatal hit-and-run
Police in Prince George’s Coun-
ty were trying to identify a pedes- trian who was struck and killed in the Adelphi area Sunday night and find the person who hit him, authorities said. The incident occurred about
9 p.m. near 23rd Avenue and Uni- versity Boulevard. Police said a pedestrian, whom they had not identified, was killed by a driver who apparently fled the scene. —Matt Zapotosky
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