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From a late 2013 interview with Katrina Olson, Broadway stage manager:
Back in January, The Flaming Lips band member Wayne Coyne tweeted : “Doing more lyrics for SpongeBob Musical!!” It seems likely that he was referring to this project. :)One of her projects has her working with an international icon as she is working on Nickelodeon’s first ever Broadway production with Spongebob: The Musical.
It’s scheduled to be on stage in Fall 2015. Tina Landau will direct the show and it will be an original story written by a professional book writer outside the television series. It will also have composers who are huge in the music industry with many popular artists ranging from a mixture of genres from classic rock to modern pop–exact names aren’t permitted to be released at this time.
“I was over the moon when I found out,” Olson said. “Spongebob is an icon that has been seen on so many things, even toothpaste. It is such a privilege to work with this franchise on its very first musical, something that has never been done before.”