First Step To Move Wizards, Capitals To Alexandria Approved

UPDATE: Washington Capitals, Wizards Relocation Plan To Alexandria Announced

ALEXANDRIA, VA — An initial step was taken by Virginia lawmakers Monday to potentially bring the Washington Capitals and Wizards to a new location in Alexandria's Potomac Yard.

As first reported by the Washington Post, the lawmakers in the Major Employment and Investment Project Approval Commission voted on the plan to relocate the teams to a mixed-use development in Alexandria's Potomac Yard. The proposal would still need a vote by the Virginia General Assembly.

Monumental Sports & Entertainment, the owner of the Washington Capitals and Wizards, has not confirmed whether the teams will definitely be relocated. The teams are currently based at Capital One Arena in DC's Chinatown neighborhood. DC officials are in discussions with Monumental Sports & Entertainment to keep the teams in DC.

The ground lease at DC's Capital One Arena continues until 2027.

Potomac Yard is the site of recent development growth, including the new Metro station and upcoming Virginia Tech Innovation Campus.

A proposed 8-million-square-foot campus would include a stadium with facilities for both the Capitals and the Wizards, an underground parking lot, and a separate 3,000-seat concert venue, 7News’ Christian Flores told WTOP.

“I don’t think, and a lot of the people we’ve spoken to don’t think, that (the proposal) would have made it this far, and have made it to this specific commission of state lawmakers, if this was not something that Virginia and Monumental were both seriously considering and seriously putting resources and time and effort into,” Washington Post reporter Teo Armus told WTOP.

For the project to go forward, approval will be needed from the Virginia General Assembly and the Alexandria City Council. State lawmakers would also need to vote to form a stadium authority that would play a role in building the arena and collecting taxes, Armus said.

Capital One Arena in D.C. is among the oldest in both the NBA and NHL, and the surrounding area has grappled with rising crime rates, said NBC Washington. While Monumental owns Capital One Arena, the District owns the land on which it sits, and Monumental founder and CEO Ted Leonsis has complained about the ground lease.

In 2016, Leonsis said he had "the worst building deal in professional sports," according to the Washington Post, which reported that Leonsis said he was paying $14 million per year in interest, $9 million in principal and maintenance costs that the year before cost $13 million. "By comparison, he said, most teams pay rent of $3 million to $4 million to play in municipally owned arenas," the Post reported.

See the full story from the Washington Post.