Potomac Yard Arena Financing Legislation Advances In House, Stalls In Senate

ALEXANDRIA, VA — With Virginia General Assembly approval being the first step required to advance an arena and entertainment district in Alexandria's Potomac Yard, legislation is only making progress in one chamber.

A House bill by Del. Luke Torian (D-Prince William) to create a Virginia Sports and Entertainment Authority passed the Virginia House of Delegates Appropriations Committee 17-3. Meanwhile, the Senate version of the bill by state Sen. Scott Surovell (D-Fairfax) will not get a hearing in the Senate Committee on Finance and Appropriations before Tuesday's crossover deadline, which is when bills get sent to the other chamber for approval.

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

The Virginia Sports and Entertainment Authority would issue $1.05 billion in project revenue bonds and $416 million in lease revenue bonds for the arena and entertainment district. The project would also receive a $403 million contribution from Monumental Sports & Entertainment and $106 million from the City of Alexandria to build a performing arts venue in partnership with Monumental Sports & Entertainment and related underground parking.

State Sen. Adam Ebbin (D-Alexandria) laid out what could happen if the Senate version of the bill does not advance through the crossover.

"Even though the bill has not yet been considered by the traditional pre-crossover deadline, the House version of the bill could advance and be considered by the Senate—and the Senate rules do allow for the governor to send down another bill at any time," Ebbin wrote in a message to constituents. "The project was also included in the governor’s proposed budget."

State Sen. Louise Lucas (D-Portsmouth), who chairs the Senate Finance and Appropriations Committee, responded to a question from reporters Monday about whether the arena deal was dead, saying, "As far as I'm concerned, it is."

Lucas explained the bill wasn't on the committee's docket because it was risky for the commonwealth and potentially taxpayers for financing.

"Governor’s Arena Bill is not on the Senate Finance and Appropriations docket because his proposal is not ready for prime time," Lucas tweeted. "This is what happens when Executive Branch doesn’t operate in good faith and doesn’t have respect for the Legislative Branch."

Lucas also mentioned Gov. Glenn Youngkin's speech at Washington and Lee University in which he broadly criticized Democratic priorities for the U.S., the Associated Press said.

A spokesperson for Youngkin told the AP the administration is confident in the Virginia General Assembly still approving the proposal. The spokesperson cited new state revenue, which could help with priorities like toll revenue relief in Hampton Roads, which Lucas is seeking.

Virginia Senate Republicans criticized the "pocket veto" decision by Lucas to not let the committee vote on the proposal.

"The only plausible explanation for this move is that there were not enough votes in the Senate Finance Committee to defeat the bill," said state Sen. Mark Obenshain (R-Rockingham) via the AP.

Ebbin, Alexandria's state senator, believes the project shouldn't be rushed "without answers to important questions." That includes investing in affordable housing to support affected neighborhoods, a commitment to long-term funding of Metro, and binding agreements to create jobs with good pay. Ebbin says the transportation plan released for the project has potential improvements but no long-term funding of Metro. Youngkin has proposed a budget amendment in his budget proposal for short-term Metro funding.

"The report predicts that Metro could in the future support 50% of the arena traffic to Potomac Yard," Ebbin shared. "Unfortunately, this could never be achieved unless Metro receives long-term, sustainable funding from the Commonwealth."

The Associated Press contributed to this report.

MORE COVERAGE:

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• $1.4B Potomac Yard Arena Legislation Introduced In VA House, Senate
• Potomac Yard Arena Transportation Plan: Up To $215M In Funding Needed
• 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