(The Center Square) – Washington’s NBA and NHL franchises have announced intention of a move to northern Virginia, part of a $2 billion public-private partnership to create a “world-class” entertainment district in the Alexandria’s Potomac Yard neighborhood.
News of the move began to break Monday and Tuesday, with Wednesday’s news conference by Republican Gov. Glenn Youngkin confirming. A vote Monday by state lawmakers was affirmative, and another of the full General Assembly is needed. The NBA Wizards and NHL Capitols are owned by Ted Leonsis, the CEO of Monumental Sports & Entertainment.
Planner is a 9 million-square-foot entertainment district, including the global headquarters for Monumental. If given a final green light, the project is expected to break ground in 2025, with an opening date in 2028.
Both teams play in downtown Washington’s Capital One Arena.
The Potomac Yard area has access to the Metro, is close to the new Amazon HQ2 site, and to Reagan National Airport.
It will include a state-of-the-art media studio for the Monumental Sports Network, a practice facility for the Wizards, a performing arts venue, an expanded esports facility, and it is expected to bring a slew of retail, restaurants, hotels and community gathering spaces to the area of Alexandria.
Youngkin is touting the development as a major economic boost that supporters say will generate a $12 billion economic impact for Alexandria and the commonwealth and create approximately 30,000 jobs.
The governor describes the project as a “once-in-a-generation” historical development and “monumental,” while celebrating the commonwealth landing two professional sports teams.
“This is the most visionary sports and entertainment development in the world, bringing together entertainment, sports, and technology in the most advanced innovation corridor in the United States: a once-in-a-generation and historic development for the commonwealth, sports fans, and all Virginians,” said Youngkin. “The commonwealth will now be home to two professional sports teams, a new corporate headquarters, and over 30,000 new jobs – this is monumental.”
In the upcoming General Assembly session, legislators will be asked to approve the creation of a new Virginia Sports and Entertainment Authority. The governor’s office says the $2 billion “transformational investment” will be supported with bonds issued by the yet-to-be-created authority, with a $403 million investment from MSE.
The city of Alexandria also must approve the move.
A release from Youngkin’s office said, “The bonds will be repaid through annual rent paid by MSE, arena parking revenues, District naming rights, and incremental taxes generated by the Arena and Phase 1 development. There is no upfront investment or inclusion of any taxes already being collected by the commonwealth to repay the bonds and there will be no tax increases for local residents.”
In addition, the city of Alexandria, in partnership with MSE, will contribute $56 million toward constructing a performing arts venue and an additional $50 million to develop underground parking.
“The project includes $110 million in on-site infrastructure including site development and roadway, signal, and intersection improvements funded through the bonds,” according to Youngkin’s office.
“The land and buildings will be owned by the to-be-created Virginia Sports and Entertainment Authority. The Virginia Sports and Entertainment Authority will enter into a 40-year lease with the company,” the release added.
The announcement of the move is likely to be a significant economic blow to the District of Columbia. The district, led by Mayor Muriel Bowser, made a last-ditch effort to stave off the move by offering $500 million in renovations to Capital One Arena.
