Birchmere Gone? Who Cares! But What Really Went Down?
By Silver Springer • Jul 31st, 2007 • Category: Arts, Food and Entertainment, Government and Politics, Real Estate
Take it for what it’s worth but according to several sources the breakdown in the Birchmere is a story of financial disagreements in the deal.
In a conversation with County Executive Isiah Leggett, the following information was related.
Rent for the Birchmere was to cost $7,000 a month, the kitchen alone was $750,000. In a rent-to-own agreement the $750k would be subtracted from the purchase price and the county and state would contribute their equal halves of $ 8 million.
The deal started to go south when Birchmere management demanded greater improvements to the kitchen, valued at $2 million, with the county subsidizing 60% of the costs.
Also requested was room in the rear of the building for tour buses to turn around, park in the alley  and additional parking spaces. This would cut the number of seats in the Birchmere from 700 to 450.
At that point the County balked at the idea stating that profits were substantially reduced and the goal of revitalizing the north core in CBD would not materialize. Not enough jobs were being created with the altered offer. The County proceeded to talk to other parties solicit proposals.
The County continued to negotiate with the Birchmere but the Birchmere management refused to change their terms.
It’s said Birchmere management wanted to change their terms of agreement to include heavier incentives and subsidies with Montgomery County because of unfavorable terms they agreed to with Loudon County, Va. They are feeling the squeeze financially building the facility there as it reduces their profits.
As far as Live Nation goes, Leggett’s greatest concern is the diversity of the performers. The fear is that Live Nation will aim for high profit, high profile performer of a certain genre but would be at the expense of the community, not catering to their diverse requests. Live nation could house between 1400 and 1700 people, parking could be provided in underutilized garages along Spring Street.
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Well gee, do you really think a big chain would stoop to running their buisness with profit as a motive? It didn’t stop the county from allowing all the other soulless chains in and driving out Mom & Pop buisnesses. Starbucks is cutting into Kefe Cafe which is a Silver Spring treasure. This proves that it is not about “cutting into Silver Springs diversety”, but that it is a youth issue. The County doesn’t care that chains are driving out multi-cultured small buisness, as their main concern is profit, but they can’t sell a profitable club that brings in masses of young people. They need the rich, white, NIMBY vote to stay in power, and for better or worse, The Birchmere was the best fit. The Birchmere had Ike & the crew by the “short & curlies”, and they flinched. Put a fork in them, they’re done.
Actually, Starbucks actually helps other coffee shops by building awareness of that type of product. Most “local” coffee shops owe their existence to the market that Starbucks created. The number of independent coffee houses has doubled since 2000, due in no small part to the rise of Starbucks. Studies have shown that the opening of a Starbucks usually has a POSITIVE affect on local competitors and many proprietors looking to open a new shop actually request the space next to Starbucks.
Starbucks also offers higher pay and makes health insurance available to its employees.
If Starbucks does such harm to the local competition, why do additional coffee houses (Highland Origin, etc.) continue to open up in Silver Spring?
I was hoping someone would quote that Starbucks fact. Too bad the same isn’t true for the effect of chains on other retail. Either way, I hope Petrie Ross brings Target to City Centre…
Yeah, it’s a shame that chains, which can typically offer deeper discounts and a more consistent product drive craptastic local stores out of business. I know my wife is super PO’ed that instead of going to Rosta’s and shopping a butt-ugly, sequinned multi-colored suits she has to shop the classic, classy styles of Ann Taylor Loft.
Rich people suck.
FireJimBowden,
At least your wife still has City Place.
You know what I enjoy? About once a year, typically around two or three o’clock in the morning, some drunk driver crashes their car into (what used to be) Rostas.
Personally, I miss having the Shaolin Wu-Shu Academy over the Rostas, if only because I enjoy saying “Shaolin Wu-Shu”.
I was supportive of the Birchmere coming to Silver Spring but I am not dissappointed that the deal fell apart. My wife and I love to see live music but as we all know it is difficult to find good acts in Montgomery County. McGinty’s is a pretty good bar with great local bands and I have been able to bring friends from other parts of the area to Silver Spring as a result but McGinty’s will not attract national acts. I am not “in the know” when it comes to the music scene but I have been looking at the lineup at the Birchmere in Alexandria for years and I never recognized any of the acts. Considering the cost of the Strathmore Music Hall to us taxpayers I think the least the county can do is attract a venue similar to the 9:30 club that does have a great diversity of music and national acts for those of us who do not like the Baltimore Philharmonic. I would like to have a casual music venue with upper level seating but a large standing room section in front, the old Bayou in Georgetown is another that comes to mind. Hopefully the county will follow through and bring in a large venue to Silver Spring that will attract national acts, this probably will not hurt smaller bars featuring local bands like the Birchmere might have. I think the location would be perfect and it is close enough for people to walk to Metro. The county needs to lighten up and not be so afraid of real nightlife. As Ellsworth drive has demonstrated, the more people around on the streets at night the safer it will be. I would rather deal with a few rowdy drunks than have to worry about walking down a dark, unpopulated street.
For those of you who think that a different kind of venue would be a good thing (like Joe), you should know that there is a group of residents gearing up to fight anything that might look like it appeals to a younger crowd–in this case, “younger” appears to mean “under 50.”
Just thought you’d like to know.
I’m over 50 and not so much in favor of the Birchmere as I am against Live Nation. And it’s not the age group that Live Nation will attract that I worry about. It’s their way of doing business. Live Nation is the largest concert promoter in the world. They’re affiliated with Clear Channel. Clear Channel is responsible for the loss of market diversity in radio, the pre-recorded canned music stations that have taken over the airwaves. They’ve also been known to “punish” musicians who aren’t part of their management group.
I think local would be better. It doesn’t have to be the Birchmere. As Neil Young said about Live Nation and Clear Channel in the Chicago Tribune in 2003, “They are anti-music, and they don’t get the spirit of it.”