- Virginia lawmakers plan to introduce a bill that would pave the way for a massive sports and entertainment complex to be built outside Washington, D.C.
- The proposal, supported by Republican Gov. Glenn Youngkin, would move the NBA's Washington Wizards and NHL's Washington Capitals to Alexandria after announcing their intention to vacate the District of Columbia.
- The planned Potomac Yard complex is expected to cost about $2 billion.
Supporters of Virginia Gov. Glenn Youngkin's plan to build a new professional sports arena and entertainment district in Northern Virginia argue the project will more than pay for itself because it will create generational jobs. ing.
Meanwhile, critics say the proposal to bring the NBA's Washington Wizards and the NHL's Washington Capitals across the Potomac River from the nation's capital amounts to a lavish tax handout to the wealthy owners of the teams' parent companies. claims to be equal.
In the next 2024 legislative session, which begins Wednesday, Virginia lawmakers will need to clarify their position on that division as they consider a complex bill that would make the move possible.
Washington Wizards, Capitals plan to move out of D.C. as crime crisis intensifies.Yongkin celebrates relocation
Youngkin, a Republican, and entrepreneur Ted Leonsis, a billionaire former AOL executive and CEO of Monumental Sports & Entertainment, reached an agreement in December to relocate the team. announced publicly. If that happens, Youngkin will be able to score a big victory. Virginia is the nation's most populous state, but it lacks a major professional sports franchise, something officials of both parties have been trying to change for decades.
The plan comes amid a wave of new sports facility construction across the country, with a $2 billion development in Alexandria's Potomac Yard neighborhood that will include an arena, practice facility and Monumental's headquarters, as well as a standalone facility. is seeking to create a The performing arts venues are all within a few miles of Capital One Arena, where the team currently plays in Washington. Monumental hired several of Richmond's top lobbying firms to advance the deal.
Monumental has committed to making an upfront payment of $403 million. The city of Alexandria will commit $106 million upfront for the performing arts venue and parking, pending approval by the City Council. Most of the remaining $1.5 billion in funding will come in the form of bonds issued by the stadium authority. The stadium authority is being asked by lawmakers to create a government agency that would own the land and building and lease it to Monumental.
Under the proposal, about $1 billion in bond proceeds would be repaid with new tax revenue from the project, and the money would be used to finance development projects, according to public documents and details provided by Youngkin's office. Without it, Youngkin argues, it wouldn't exist.
In response to questions from The Associated Press, Youngkin spokesman Christian Martinez said the bond package is “carefully structured and conservatively sized,” with proceeds expected to be two to three times the required debt service coverage. He said it would be done. But the agency has not made public the external analysis that led to that conclusion.
Virginia Governor Glenn Youngkin is seen attending an early voting rally with Yesli Vega, Republican candidate for Virginia's 7th Congressional District, at the Brandy Station Fire Station on Tuesday, November 1, 2022, in Virginia. (Tom Williams/CQ-Roll Call, Inc, via Getty Images)
Another $416 million in bonds will be repaid through rent paid by the Capitals and Wizards. The team is expected to sign Alexandria to a 35-year contract, and if he leaves, Martinez said, Monumental will pay off all outstanding regulatory debt.
City officials, who have hosted various presentations and forums about the deal in recent weeks, said that while the city and state will use borrowing power to finance the project, most of the cash will ultimately go to Monumental. The company emphasized that it will be paid by
“Ninety-five percent of this project is funded by Monumental,” Alexandria City Manager James Parajohn said in a public presentation.
But increasingly organized opponents dispute that characterization. Andrew MacDonald, a former Alexandria City Councilman and organizer of the Coalition to Stop Potomac Yard Arena, said taxpayers would be in trouble if the arena project didn't bring in enough revenue.
At Thursday's anti-arena rally, Alexandria resident Shannon Curtis said that even though the money comes from taxes levied on Monumental, it is still a taxpayer-funded project.
“Tax revenue is taxpayer money. It doesn't belong to the governor. It doesn't belong to the mayor. It doesn't belong to Ted Leonsis,” she said. “It's public money.”
The group also questioned economic inventory predictions, citing research by sports economists that says the economic benefits from professional sports franchises are overstated.
Some rally attendees said they didn't like the idea of Alexandria poaching a team from the District of Columbia to boost its economy, and many officials said the presence of the Wizards and Capitals was argues that it is essential to supporting downtown.
“This isn't a new economic benefit. It's just pulling it from other places and putting it in this new flashy area,” Curtis said.
Lawmakers propose casino complex in Northern Virginia as gambling expands across the state
Many Republicans, who have generally supported Mr. Yonkin's policies over the past two years, said they wanted to hear more about the specifics and possible benefits. Leading Democratic lawmakers have generally indicated they are willing to support the project, but its approval is far from certain, something Alexandria Mayor Justin Wilson acknowledged at nearby City Hall.
“This could absolutely disappear at any stage,” said Wilson, who personally supports the deal.
Incoming Senate Majority Leader Scott Surovell said in an interview with The Associated Press that while the project appears to have merit, lawmakers will have a long list of questions. Incoming Democratic House Speaker Don Scott told The Associated Press he is “both optimistic and cynical” about the plan's future. Also, Sen. Louise Lucas, D-Portsmouth, who will lead the powerful Senate Finance Committee, has no plans to give gifts to Northern Virginia without considering the Hampton Roads region's wish list, which includes fee relief. revealed.
Efforts to bring major professional sports to Northern Virginia date back decades. Thirty years ago, then-Gov. Democrat L. Douglas Wilder and then-owner of the Washington NFL team, Jack Kent Cooke, announced plans to bring Cooke's team to the same Potomac Yards site. The deal fell through.
CLICK HERE TO GET THE FOX NEWS APP
Twenty years ago, Virginia also tried to bring Major League Baseball to the commonwealth. However, concerns were raised about the funding, which shares many structural similarities with what is currently being proposed. MLB chose Washington, D.C., instead.
