ALEXANDRIA, Va. — Discussions over Monumental Sports and Entertainment moving the Washington Capitals and Wizards from Capital One Arena to Potomac Yard remain underway. Alexandria Mayor Justin M. Wilson addressed the potential move in the Council Connection's first newsletter of 2024.
Wilson talked through several key points regarding the potential move including how the project is expected to provide nearly a billion dollars of permanent annual economic output for the city of Alexandria, according to analysis by HR&A advisors. That same analysis shows that the first phase of the project would "catalyze an additional $5.6 billion of permanent annual economic output within the city."
He also stressed how important it was to him to protect taxpayers from baring the brunt of the costs of a new arena. He said included in the deal is an ongoing fund that will renovate and upgrade the arena over time, to avoid the obsolescence that he says ultimately occurred at Capital One Arena. In addition, he said the city will have long-term agreements with Monumental Sports and Entertainment to ensure long-term tenancy and protect the city's taxpayers from risk.
"There is no city or Commonwealth tax dollars being invested in the arena," said Wilson.
More than just the arena, Wilson said there will be two components that the city will be invested in. As part of the deal, Alexandria will invest in a new performing arts center and the parking facilities as a joint venture with Monumental. As part of that arrangement, the city of Alexandria is entitled to a share of the revenues from both of those uses.
Wilson said of the overall $2 billion of investment from this project, 42% will be financed by Monumental, 53% will come from a portion of the new tax revenues generated by the project, and 5% will come from the city itself.
“While the contours of the financial relationship between the City, Monumental and the Commonwealth has been negotiated, there is a lot of detail associated with this proposal that must be determined." said Wilson. Adding," Protecting our existing neighborhoods from any negative impacts, ensuring that our transportation infrastructure can support any plans for use of these facilities and prioritizing public investments are just a few of the critical details that must be determined in close collaboration with our residents over the next year and beyond."
To read the full newsletter, click here.
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