$1.4B Potomac Yard Arena Legislation Introduced In VA House, Senate

ALEXANDRIA, VA — Legislation has been introduced in the Virginia General Assembly to create a sports authority that would finance $1.4 billion toward the estimated $2 billion construction cost of the proposed Washington Capitals and Wizards arena and entertainment district in Alexandria's Potomac Yard.

The bills were introduced in the Senate by state Sen. Scott Surovell (D-Fairfax) and in the House by Del. Luke Torian (D-Prince William). The Senate version has been referred to the committee on finance and appropriations, while the House committee assignment is pending.

The proposed $2 billion entertainment district, which would require approvals from the City of Alexandria and Virginia General Assembly, would also include a corporate headquarters for Monumental Sports & Entertainment, a Monumental Sports Network media studio, Wizards practice facility, performing arts venue and expanded e-sports facility.

The matching bills would create a Virginia Sports and Entertainment Authority and a financing fund to issue bonds for the arena and entertainment district in Alexandria. The nine-member authority would have six members appointed by the governor and three by the City of Alexandria.

Under the legislation, the authority would receive sales tax revenues from construction and other business in the arena and entertainment district — excluding dedicated transportation and education revenues — and tax revenues, personal income tax revenues, corporate income tax revenues from Monumental Sports & Entertainment's income and its sports teams.

The City of Alexandria would also be authorized to appropriate tax revenues to the sports authority. Revenues would be use to pay debt service, reserves, capital spending and maintenance, but any excess revenues would go to the commonwealth and City of Alexandria.

As Del. Elizabeth Bennett-Parker (D-Alexandria) said during a Del Ray town hall, the House and Senate bills first go to committees. Bills passed in one chamber would go to the other chamber for a vote — the date for bills going to other chambers is Feb. 13 in this session. If amendments are introduced to either bill, it could go to a conference committee to work out differences between the House and Senate versions.

Some legislators are awaiting the release of a transportation plan to address roadway and transit needs to address increased visitors to Potomac Yard. Gov. Glenn Youngkin has also indicated he supports more funding for Metro, which faces a budget deficit or cuts unless state and local governments provide more funding, the Washington Post reported.

A coalition opposed to the arena in Potomac Yard is calling on state legislators to reject the sports authority legislation. The coalition had joined Don't Mute DC for a rally outside Capital One Arena in DC to protest the teams' possible relocation. Moving the arena would not only be a blow to DC's economy but also to Black businesses dependent on the Mystics in southeast DC. The Mystics could move to Capital One Arena from southeast DC if the Capitals and Wizards move to Alexandria.

"The best place for these sports teams is right where they are today," said Andrew Macdonald, a former Alexandria vice mayor and member of the Coalition to Stop the Arena at Potomac Yard. "Washington, D.C., has a great transportation infrastructure. People can get there easily. There is lots of parking and multiple high-capacity metro stations."

The proposal to move the teams from D.C.'s Capital One Arena in Chinatown to Alexandria isn't a done deal. D.C. leaders have offered $500 million to upgrade the existing Capital One Arena and extension of the ground lease to 2052, the Washington Post reported. The existing arena dates back to 1997 and is one of the NHL and NBA's oldest.

The $2 billion Potomac Yard project would be supported by bonds issued by the state's proposed Virginia Sports and Entertainment Authority and $403 million in contributions from Monumental Sports & Entertainment. The company and city would each contribute $56 million for the construction of the performing arts venue. Another $50 million toward underground parking development would be contributed by the city. The city government says no existing taxes or proposed tax increases are supporting the project.

JBG Smith's mixed-use development at Potomac Yard is already planned to have new retail, residential, restaurants, hotels, conference and community gathering space uses. Virginia Tech's upcoming Innovation Campus and the new Potomac Yard Metro are nearby.

Meanwhile, Monumental Sports & Entertainment is working to curb opposition with a new public relations campaign. The company released a new website, MonumentalOpportunity.com, to address common areas of opposition. On Monday, project representatives held a small business roundtable about the proposal at Pork Barrel BBQ, whose owner was mentioned by Youngkin for supporting the arena.

"We are committed to providing world-class fan experiences while continuously evolving our teams, deepening community ties, and solidifying our role as leaders at the forefront of sports and technology," said Ted Leonsis, CEO of Washington Capitals and Wizards owner Monumental Sports & Entertainment. "The opportunity to expand to this 70-acre site in Virginia, neighboring industry-leading innovators, and a great academic partner, would enable us to further our creativity and achieve next-generation, leading work — all while keeping our fans and the community at the forefront of everything we do."

If the project is approved, Monumental Sports & Entertainment said the Capitals and Wizards would continue playing at Capital One Arena through 2027. Construction on the new project could begin in 2025 with an expected opening in 2028.

Updates and more information on the project are being shared at MonumentalALX.com.

The sports authority would be required for the arena and entertainment district to move forward. The City of Alexandria is in the midst of community engagement on the proposal in January and February.

MORE COVERAGE:

• Washington Capitals, Wizards Move From DC To NoVA Outlined
• Potomac Yard Arena: Team Owner Launches Website Addressing Opposition
• Proposed Arena Prompts Sports Authority, Transportation Discussions
• Washington Capitals, Wizards Move From DC To NoVA Outlined
• 'Not A Final Deal': Alexandria Mayor Addresses Sports Arena Proposal
• Arena In Alexandria's Potomac Yard Could Create 29K+ Jobs: Report
• Majority Oppose Capitals, Wizards Arena In Alexandria: Patch Survey
• Potomac Yard Arena Proposal: Coalition Opposes, Town Hall Planned