EDIT: if you dive into the plans I posted above, you'll notice that the proposed venue in the basement is for 700 people. That's nothing to scoff at.
I'm not scoffing at the notion of a venue with a capacity for 700 people.
Local bands don't play at 700-capacity venues. Smaller touring bands don't get booked into 700-capacity venues.
Abbey Lounge, Penalty Box, The Rat, Bunratty's, Church/Linwood, Chopping Block, Radio, ONCE -- those are the kinda places that support the development of a creative music scene (not limited to "rock").
Once this happens it'll be the Midway (a bit of a trek for most) and Jungle. And that's it.
Your point about this development being a hotel and not condos is well taken and I agree it ups the chances of the venue (possibly) happening, but it won't be a replacement for the Middle East and/or Sonia (nee TT's) b/c it won't serve as a spot for up and coming artists to hone their craft.
Aerosmith, The Cars, The Dropkicks, New Edition, Gang Starr, Juliana Hatfield, The Lemonheads, Bosstones, The Cars, Tracy Chapman -- Boston has an impressive list of musicians who started out playing SMALL local spots and went on to big things (and plenty of worthy artists who never graduated to arenas and theaters), but that list is in danger of never being added to again in any meaningful way.
Smaller venues are dying at an unprecedented clip.
As of this writing, there is exactly *one* remaining commercial practice space/building within the city limits (bye Sound Museum, Denby, EMF, Starlab, etc. etc.).
There are plenty of 700-2000 seat venues in the city and we've added a few more in recent years -- Roadrunner, MGM Music Hall, Sinclair.
We'll be joining San Fran as a "Global City" with no present-tense local music & arts scene.