Arena In Alexandria's Potomac Yard Could Create 29K+ Jobs: Report

ALEXANDRIA, VA — Since the proposal for a Washington Capitals and Wizards arena in an entertainment district was announced for Alexandria's Potomac Yard, key findings of an economic impact analysis have been released.

Alexandria Economic Development Partnership hired HR&A Advisors in June to conduct the economic analysis of the proposed development impacts in Potomac Yard with an arena and additional accelerated development in Potomac Yard. The proposed $2 billion entertainment district project, centered on an arena for the Capitals and Wizards, would be subject to approval by the Virginia General Assembly and the City of Alexandria. Along with an arena, the entertainment district would include a Monumental Sports Network media studio, Wizards practice facility, performing arts venue and expanded e-sports facility. JBG Smith's mixed-use development in Potomac Yard is already planned to have new retail, residential, restaurants, hotels, conference and community gathering space uses.

According to the economic analysis report, the entertainment district would generate an estimated 29,925 permanent jobs in Virginia, including 23,015 in the City of Alexandria. In a development scenario for Potomac Yard without the proposed entertainment district, the estimated job creation is 12,330 for Virginia and 9,190 for Alexandria.

The entertainment district could also create about 2.5 times the economic output compared to current development plans for Potomac Yard. An estimated $7.967 billion in annual economic output is estimated for the development of Potomac Yard with the entertainment district, compared to $3.531 billion for baseline development without the entertainment district.

The annual economic output estimate is based on phase one of development and the arena ($1.119 billion) and additional development ($6.848 billion). Another factor in the analysis is an estimated 221 arena events and 115 performing arts venue events annually. The estimates are for when full build-outs of development would be in operation, which would be 2036 for the scenario with the entertainment district and 2047 for the development without the entertainment district. The baseline development scenario doesn't include accelerated development for the existing Potomac Yard Shopping Center.

The proposal would first require the Virginia General Assembly to approve a Virginia Sports and Entertainment Authority during their 2024 session. Various approvals would also be required in the City of Alexandria for the project to happen. Community engagement on the proposal is expected to begin in early 2024.

As previously announced, the entertainment district would be supported by $1.05 billion in project revenue bonds and $416 million issued by the Virginia authority, $403 million contribution from the teams' owner Monumental Sports & Entertainment and $106 million from the City of Alexandria for a performing arts venue and underground parking. Bonds would be repaid by lease payments by Monumental Sports & Entertainment, business and sales tax revenues from the district, parking tax revenues, and district naming rights.

SEE ALSO:

• Washington Capitals, Wizards Move From DC To NoVA Outlined
• 'Not A Final Deal': Alexandria Mayor Addresses Sports Arena Proposal
• Majority Oppose Capitals, Wizards Arena In Alexandria: Patch Survey