Potomac Yard Arena Updates: Coalition's Opposition, Town Hall Planned With Legislators

ALEXANDRIA, VA — As locals continue to react to the proposed entertainment district with a Washington Capitals and Wizards arena in Alexandria's Potomac Yard, a coalition is expressing opposition to the project, and state legislators will hold a town hall.

The proposed $2 billion entertainment district, which would require approvals from the City of Alexandria and Virginia General Assembly, would include an arena for the Washington Capitals and Wizards, corporate headquarters for Monumental Sports & Entertainment, a Monumental Sports Network media studio, Wizards practice facility, performing arts venue and expanded e-sports facility. It would be part of JBG Smith's mixed-use development at Potomac Yard with retail, residential, restaurants, hotels, conference and community gathering space uses as well as Virginia Tech's upcoming Innovation Campus.

As community engagement about the proposal is expected to get underway in Alexandria in early 2024, one group has been formed to voice opposition. The Coalition to Stop the Arena at Potomac Yard is holding a media event Thursday in Potomac Yard to share reasons for the opposition. Andrew Macdonald, a former vice mayor of Alexandria, is involved in the coalition.

A petition is circulating to oppose the arena. The petition says the arena will worsen traffic around Route 1, increase taxes, hurt historic communities and the small neighborhood feel, disrupt families' lives, lower property values, increase crime, hurt the natural environment and cause noise pollution.

"What makes Del Ray, Old Town, Potomac Yard and their adjacent neighborhoods so valuable, are their quaint, small town dynamics and rich history," the petition states. "Bringing this enormous commercial facility to the area will completely undermine what Alexandria is and the value it brings to residents, homeowners, families, and local businesses."

The $2 billion entertainment district would be funded 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 would support the project. The city is facing a budget shortfall in its upcoming budget, as spending is expected to outpace growth in the tax base. Leaders will have to decide whether a real estate tax increase or spending cuts will be part of the budget. But Mayor Justin Wilson and other officials see economic development opportunities like the Potomac Yard arena as a way to ease the tax burden on residents.

Along with various required approvals from the City of Alexandria for the project to move forward, the Virginia General Assembly would have to approve a Virginia Sports and Entertainment Authority in its 2024 session. The authority would own the land and buildings and would enter a 40-year lease with Monumental Sports & Entertainment. The authority would issue bonds to partially fund the district with repayment from Monumental Sports & Entertainment's rent payments, arena parking revenues, entertainment district naming rights, and incremental taxes from the arena and mixed-use development.

Two state lawmakers representing Alexandria — state Sen. Adam Ebbin and Del. Elizabeth Bennett-Parker (D-Alexandria), will participate in a town hall hosted by the Del Ray Citizens Association. The virtual town hall on the arena proposal will be at 7 p.m. on Jan. 8. Residents can register and submit questions. A recording will be provided after the event by the Del Ray Citizens Association.

Bennett-Parker had released a statement following the arena announcement on her stance.

"This could be an unprecedented opportunity for Alexandria to diversify its tax revenue, which disproportionately falls on residents, generate much-needed funds for affordable housing and education, and incorporate local businesses and workers," Bennett-Parker said. "However, I will be weighing that against other considerations — including community input, state funding for metro, and whether the project prioritizes and protects local workers and ensures fair wages. I also live in the neighborhood where this complex would be built and want to be sure that our community and our values are respected and protected."

SEE ALSO:

• 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