In lawsuit over failed Portland music hall project, judge hears initial arguments

The developers behind a failed proposal for a 3,300-seat performance venue — which was blocked by Portland’s controversial new buffer zone ordinance — had their first day in court Sept. 30. Portland Music Holdings LLC, led by Todd Goldenfarb and his father Howard Goldenfarb, filed a lawsuit in federal court that said the project was derailed by a change in the zoning ordinance revision that mandates a 750-foot buffer between all venues with a capacity greater than 1,000. In a 14-page complaint, the Goldenfarbs maintain that the ordinance change intentionally targeted their project, and that “some members of the Council have personal animosity towards PMH and its owners in general, and Live Nation in particular, and were attempting to shield other venues from potential competition.” The city responded by filing a motion to dismiss the suit and the two sides met in court Wednesday for the first time. Judge John C. Nivison heard arguments in an hour-long hearing at U.S. District Court for the District of Maine in Portland. “We’re saying we’re being targeted for no other reason than some members of the City Council do not like my client," Lee H. Bals of Marcus Clegg, the attorney for the Goldenfarbs, said at the hearing. “The moratorium and the buffer went into effect not for a valid reason. We did everything we were supposed to do,” Bals added. Core issue Plaintiffs say the core issue is the process the city pursued to derail the 66,000-square-foot project. The venue was proposed to be built on a lot at 245 Cumberland Ave., directly across Myrtle Street from the 1,900-seat Merrill Auditorium in Portland City Hall. The Goldenfarbs maintain that the project met all zoning regulations at the time it was proposed in December 2024. The city planning department had agreed and the Portland Planning Board voted unanimously in March of this year not to recommend the adoption of an expanded buffer zone between large venues. At the time, the zoning code required a buffer of just 100 feet. In the face of residents' concerns about increased traffic, insufficient parking, pedestrian safety and the impact on existing venues, the City Council imposed a retroactive 180-day moratorium, one day before the project was scheduled for Planning Board review. In February of this year, Council renewed the moratorium for another 180 days. The developer’s initial partnership with Live Nation Entertainment Inc. (NYSE: LYV) was also an issue for many detractors, but since then Portland Music Holdings bought out the concert promoter’s share in the project. Supporters of the music hall had said it would generate tax revenue and create jobs while adding vitality to Portland’s downtown. The Portland Regional Chamber of Commerce and some local business owners expressed support for the project. The lawsuit seeks to have the moratorium voided, the buffer zone amendment “stricken as unconstitutional,” and to have the plaintiffs reimbursed for attorney’s fees and costs. The city's attorney, Russell Pierce Jr., with Norman, Hanson, Detroy, argued, “Their alleged injury here is that they can’t build the venue they want. The buffer zone does allow a music venue on this site, just not a gigantic one.” “The injury,” Bals countered, “is we had the right to build until they took it away.” The judge has not made a decision on whether to dismiss all or part of the lawsuit.