Virginia Gov. Glenn Youngkin hopes to work with the state Senate and may reintroduce the plan to bring the Washington Capitals and Wizards to Alexandria in a resubmission of the state budget, the governor told WTOP.
The state budget, which was sent to Youngkin from the Virginia General Assembly earlier this month, did not include the $2 billion financial package for an entertainment district in Potomac Yard, something he called “a colossal mistake” on March 7.
“We need to get the Senate to do the work. They’ll recognize the exact same thing that the House has, which is this project is, once again, a once-in-a-lifetime economic development opportunity,” Youngkin said in an interview with WTOP.
Youngkin said that, while the House of Delegates “did the work” and hired outside advisers to review the plan, he does not believe the Senate gave it adequate consideration.
“We need [the Senate] to do the work. And then yes, I can. I can include the entire project as part of my budget resubmission, and we can give it a fair hearing and a vote,” he said. “And that’s what I’m working on during this month-long period, where I get to work with legislators and really explain to them why this is such a unique opportunity.”
State Sen. Louise Lucas, D- Portsmouth, publicly opposed the deal, largely due to its reliance on government-backed bonds, The Associated Press reported.
If the governor introduces an amendment, it would be up to legislative approval. Del. Paul Krizek, D-Alexandria, says he would still oppose the plan if it were reintroduced.
“I’m still a strong ‘no.’ I think it’s a big mistake,” Krizek says. He says that he feels very few of his constituents support the plan due to its potential impacts on traffic and the environment, and he is skeptical of the move from Chinatown.
“It very seldom makes any kind of sense, you know, economic sense or even lifestyle sense,” he says. “It’s not like you’re bringing it from, you know, from Oakland, California, to Northern Virginia. It’s something that’s just 5 miles down the road and across the river, so I don’t see it as a net benefit.”
This plan, a joint effort between Youngkin and Monumental Sports & Entertainment Executive Ted Leonsis, planned to bring the two teams to Alexandria and redevelop Potomac Yard with a 70-acre sports complex, a campus for the headquarters of Monumental, an arena for the teams, a practice space for the Wizards, a media studio, a performing arts venue, and an expanded esports facility.
The project, as originally proposed, would have been funded partially through approximately $1.5 billion in bonds issued by a new sports and entertainment authority. Those debts would be paid back through parking fees and taxes generated on-site from things like ticket sales and nearby hotels.
But those projected revenues rely on high costs for parking and luxury hotels, according to an analysis obtained by The Washington Post. The analysis, commissioned by Youngkin and conducted by public finance consulting firm MuniCap Inc., shows that the arena plan assumes that fans would pay $75 for parking and $731 a night for hotels, and that there would be 53 more events per year than there were in the current space.
Other funding sources include $403 million upfront from Monumental Sports & Entertainment and a $106 million contribution from the City of Alexandria for a performing arts venue. The city’s contribution would be paid back by business revenues from the venue.
Colleen Kelleher contributed to this story
Feature rendering courtesy JBG Smith
For more stories like this, subscribe to Northern Virginia Magazine’s News newsletter
