$1.4B Arena Funding Approved In VA House Budget, Senate Support In Limbo

ALEXANDRIA, VA — The Virginia House of Delegates passed a state budget including the Potomac Yard arena legislation to provide over $1.4 billion in bond financing, but the same has not occurred in the Virginia Senate.

The House budget passed Thursday would create a Virginia Sports and Entertainment Authority to finance the Washington Capitals and Wizards arena in Alexandria's Potomac Yard with bonds. The Senate version of the budget leaves out the arena legislation.

The Senate version of the arena bill did not get a hearing in the Senate Committee on Finance and Appropriations before the crossover deadline, and committee chair Sen. Louise Lucas indicated the House bill wouldn't get a Senate committee hearing.

That means the arena legislation's fate could be decided through the joint Senate and House conference committee on the budget, according to the Washington Post.

Monumental Opportunity, a campaign in support of the arena led by the teams' owner Monumental Sports & Entertainment, told the Washington Post they expected the arena matter to be handled through the budget conference committee process. However, the group was "encouraged to see bipartisan support for both the budget language and the standalone legislation."

The Washington Capitals and Wizards arena would be part of a proposed $2 billion entertainment district, which would require approvals from the City of Alexandria and Virginia General Assembly. Along with the arena, the entertainment district would have 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 project cannot move forward without Virginia General Assembly action. A Virginia Sports and Entertainment Authority, if approved by the Virginia General Assembly, 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.

Those opposed to the project have raised concerns such as public support for a private economic development projects, benefits for the team's billionaire owner Ted Leonsis, and impacts on neighborhoods in Alexandria. Supporters of the project point to new revenues for the city and state, new jobs and more economic growth.

While the arena legislation's fate remains in question, this week brought key endorsements and opposition for the arena. The Northern Virginia AFL-CIO and its member unions came out against the project, noting the developer has not yet signed any labor agreements to provide fair wages to construction and hospitality workers. Monumental Sports & Entertainment's union jobs at DC's Capital One Arena would transfer to the Alexandria arena, but no labor agreements have been made on the development and other private owners involved in the entertainment district.

The Northern Virginia Black Chamber of Commerce announced support, citing opportunities for Black-owned businesses to grow. The chamber also cited the chance for the massive development to provide a stable tax base for Alexandria to fund community priorities like affordable housing, education and transportation.