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Tag: ted leonsis

  • DC Council unanimously approves hundreds of millions in funding for Capital One Arena renovations – WTOP News

    DC Council unanimously approves hundreds of millions in funding for Capital One Arena renovations – WTOP News

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    Under the legislation, $515 million in D.C.’s capital budget will go toward renovations to Capital One Arena and improvements to the surrounding area, including the Gallery Place building next door.

    The D.C. Council on Tuesday unanimously approved the allocation of more than $500 million for renovations to Capital One Arena as part of a plan to keep the Washington Wizards and Washington Capitals in the District until 2050.

    Under the legislation, $515 million in D.C.’s capital budget will go toward renovations to the arena and improvements to the surrounding area, including the Gallery Place building next door.

    Now, Mayor Muriel Bowser’s office has about 70 days to negotiate the final terms of the agreement, a spokesman told WTOP. 

    According to Monumental Sports & Entertainment, which owns the Wizards and Capitals, initial terms of the deal include the following:

    • Developing the best sightlines for fans, premium hospitality options, better digital infrastructure, enhanced player spaces and more arena upgrades
    • Nearly 200,000 square feet of newly-programmed space throughout the arena and in the Gallery Place building
    • Seventeen dedicated safety officers from two hours before games to two hours afterward
    • New Wizards practice facility, with options including top floors of Gallery Place
    • The ability to hold four Washington Mystics and Capital City Go-Go games, and playoff games, at Capital One Arena
    • Giving Monumental control of Entertainment & Sports Arena management
    • Adding dedicated ride-share zone and drop off for events
    • Ability to close off F Street two hours before games
    • Removing vending, loitering, noise restrictions around Capital One Arena by creating an Entertainment District

    According to a copy of the term sheet between D.C. and Monumental, obtained by WTOP, Monumental is also asking to be exempt from future taxes that might benefit other sports franchises. NBC4 first reported that request.

    The lease agreement detailed on the term sheet would keep the Capitals and Wizards in D.C. until 2050.

    Monumental, according to the agreement, is seeking a drug-free zone around Capital One Arena, and is interested in moving a bus stop at 7th and H streets farther away from the arena.

    Some of Monumental’s other priorities, according to the term sheet, include creating a “no vending” area around the arena and prohibiting “streateries” near the arena, specifically along 6th street.

    ‘Not a contract’: DC, Monumental to begin hashing out specifics

    It’s unclear how many, if any, of these priorities will appear in the final agreement, which is also subject to the council’s approval.

    Now that the D.C. Council has approved the funding, Bowser’s office has a little more than two months to negotiate a final agreement with Monumental.

    During a news conference ahead of Tuesday’s council meeting, Council Chair Phil Mendelson clarified that the terms of the initial agreement between Bowser and Monumental CEO Ted Leonsis are not binding, and the council merely approved an appropriation of D.C. capital budget money, not a finalized renovation project or its exact terms.

    “We are not voting on the lease, which will have to come to the council. We’re not voting on any other documents that, depending upon what they are, will have to come to the council. And that’s where the District will be bound,” he said.

    “And I don’t mean by that to create any ambiguity about what was agreed to last week. What was agreed to last week was initialed and signed by the mayor and by Mr. Leonsis and it is a commitment to go forward with negotiating documents consistent with the term sheet, but it’s not a contract,” Mendelson added.

    According to the council resolution introduced by Mendelson, more than 3.4 million people attended events at Capital One Arena in 2023, bringing in more than $25 million in tax revenues and sustaining more than 650 jobs.

    “A renovated arena in Chinatown/Gallery Place will again revitalize a neighborhood, create and sustain quality new jobs for District residents, and strengthen a commitment to community and fan engagement,” the resolution reads.

    While D.C. has now approved $515 million toward the project, the total projected cost of the renovations exceeds $830 million, according to the resolution.

    “With the District of Columbia Government’s substantial investment, coupled with a commitment to community engagement and economic development, the project is poised to redefine the arena’s role as a catalyst for our comeback,” the resolution reads.

    Council members celebrate deal with eye on negotiations

    Some D.C. Council members, while supportive of the arena agreement in general, expressed concern about their lack of involvement in discussions thus far.

    “We got the term sheet less than 24 hours ago,” Council member Charles Allen said during Tuesday’s meeting. “We’re being asked to vote on $515 million, which we’re gonna do. But, we’ve had a term sheet with commitments made for less than 24 hours and we are voting on $515 million, and let’s acknowledge we know it’s an investment that needs to get made, so we’re gonna do it.”

    Allen said, under the current terms of the deal, the District will be on the hook for more than $515 million.

    “We saw within the term sheet that the mayor’s committed to, in addition to the $515 million, to have Monumental be able to go through the PACE Program and the D.C. Green Bank to have additional financing,” Allen said. “That is a program that has a cap on what is in that available every year, so every dollar that we now are sending to Monumental for the arena is a dollar we’re not investing in affordable housing somewhere else.”

    Allen, along with council member Robert White, stressed the importance of collaboration between the mayor and council in the coming months as final terms of the deal are worked out.

    “We’ve got to be working together. We’ve got to be focused on securing our economy, and the council’s gonna have to be involved, which means the mayor’s gonna have to start working with the council in a way that she hasn’t done in these two terms,” White said. “This has to be a wake-up call for our city. The future of downtown, the future of our economy is not guaranteed.”

    A second chance for DC

    D.C. and Monumental’s initial agreement to keep the Wizards and Capitals in the District was reached after a deal between Leonsis and Virginia Gov. Glenn Youngkin to bring the teams to a new arena in Alexandria fell apart due to Democratic opposition in the state’s General Assembly.

    “I think we need to take a realistic and sober view of what happened. The mayor dropped the ball,” White said. “We almost lost two sports teams, and the only reason we stayed in the game is because Virginia fumbled as well.”

    State Sen. Sen. L. Louise Lucas, who chairs the Senate’s budget-writing committee, spearheaded opposition to the Virginia deal. She used her position to block the legislation, citing a range of concerns but foremost the financing structure of the deal: The use of moral obligation bonds put taxpayers and the state’s finances at risk, Lucas said.

    Council members said once that happened, both D.C.’s mayor and council capitalized on the opportunity.

    “I think we’ve done a good job as this council of standing in leadership with our city, in leadership with the mayor to say we are committed to make sure that when that ball was fumbled, after all the fruit baskets got sent to Sen. Lucas and thank you gifts, we were able to pick it up and be able to make sure that we could have this happen.”

    The Associated Press contributed to this report.

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Scott Gelman

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  • Youngkin ‘boggled’ Caps, Wizards deal ‘from the beginning,’ Va. Sen. Lucas says – WTOP News

    Youngkin ‘boggled’ Caps, Wizards deal ‘from the beginning,’ Va. Sen. Lucas says – WTOP News

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    Now that the push to move the Capitals and the Wizards to Virginia’s Alexandria area has been nixed state Sen. L. Louise Lucas is putting the blame squarely on Gov. Youngkin’s shoulders.

    Now that the push to move the Washington Capitals and Wizards teams to Virginia’s Alexandria area has been nixed — with owner Ted Leonsis calling himself political “collateral damage” in the deal — state Sen. L. Louise Lucas is putting the blame squarely on Gov. Glenn Youngkin’s shoulders.

    Lucas, a Virginia native who represents District 18, told WTOP that Youngkin “pretty much boggled this thing right from the very beginning.”

    “Because the governor knew that in order to get any kind of major project through the legislature, he had to deal with those of us who are coequals with him in this process. That’s number one. So it was up to the governor to get with those of us in the legislature, which he did not early on — he had announced that this was a done deal back in December,” she said.

    As the newly elected chair of state’s Senate Finance and Appropriations Committee, having just been elected in November, Lucas said Youngkin knew she’d be coming in but “there was no effort made from him to talk to us.”

    She said there was a virtual meeting with Youngkin’s Secretary of Finance Stephen Emery Cummings — but that was it.

    “Other than that, there was no conversation with us in December,” Lucas said. “Then, in January, when we get to the session. And all the conversation starts about it. … This has never been done in the history of the Commonwealth, to use our bond rating and to take the faith good and credit of the Commonwealth and put it behind the project.”

    “There was no way that this finance committee was going to do that on my watch,” she added.

    She raised concerns about other projects that could have been pushed through: “What would have happened if we have 15 or more other projects to come through like that, and wanting the same deal? What would happen if we had a 10 or 15 others to come behind them, even five, and they weren’t able to live up to their commitment to pay off this debt than the Commonwealth of Virginia?”

    “We’d be on the hook for it,” Lucas said.

    Monumental Sports CEO Ted Leonsis, who owns the Capitals and the Wizards, told WTOP the deal’s failure was a result of it slowly becoming more politically motivated.

    “I had always looked at Virginia as being a well-managed state, wanting to do business,” Leonsis said, adding that this experience changed his opinion. “It was like, ‘oh my gosh, this has nothing to do with business anymore; this has to do with politics.’ … Who would have thought that D.C. was easier to work with than Virginia?”

    He has since reached a deal with D.C. to keep both teams in the District until 2050 to the tune of $515 million.

    WTOP’s Sandra Jones contributed to this report.

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Will Vitka

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  • Monumental CEO Ted Leonsis says he was political ‘collateral damage’ in failed Alexandria arena deal – WTOP News

    Monumental CEO Ted Leonsis says he was political ‘collateral damage’ in failed Alexandria arena deal – WTOP News

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    Capitals and Wizards owner Ted Leonsis said he had become political “collateral damage” as Virginia lawmakers considered his plan to move the teams out of D.C. and build a new arena for them in Alexandria.

    Ted Leonsis, owner of the Washington Wizards NBA basketball team and Washington Capitals NHL hockey team, speaks during a news conference at Capitol One Arena in Washington, Wednesday, March 27, 2024. (AP Photo/Stephanie Scarbrough)(AP/Stephanie Scarbrough)

    Putting the blame on politics, Capitals and Wizards owner Ted Leonsis said he had become political “collateral damage” as Virginia lawmakers considered his plan to move the teams out of D.C. and build a new arena for them in Alexandria.

    “I’m glad I’m not a politician,” Leonsis said Friday in an interview with WTOP. “I think politics took over, which I felt very uncomfortable about.”

    Leonsis seemed confident in the arena plan late last year when he and Virginia Gov. Glenn Youngkin stood together and announced it.

    Looking back on that, would Leonsis do anything differently?

    “It’s not the way I operate, having regrets and things like that,” said Leonsis, who’s CEO of Monumental Sports & Entertainment, which owns the Washington Capitals and Washington Wizards. “I’m only looking forward.”

    When asked whether he thought the governor had underestimated how difficult it would be to get the deal done, Leonsis said “I don’t know, and I don’t want to speculate.”

    The plan called for the creation of a $2 billion development district in the Potomac Yard section of Alexandria.

    Virginia’s General Assembly was asked to set up an authority that would issue bonds to finance most of the project, backed partly by the city and state governments and repaid through a mix of projected tax revenues recaptured from the development.

    Youngkin and other supporters said the development would generate tens of thousands of jobs, along with new tax revenues beyond what would have been needed to cover the financing.

    Ultimately, however, there proved to be too much political opposition.

    “I had always looked at Virginia as being a well-managed state, wanting to do business,” Leonsis said, adding that this experience changed his opinion.

    “It was like, ‘oh my gosh, this has nothing to do with business anymore; this has to do with politics,’” Leonsis said. “Who would have thought that D.C. was easier to work with than Virginia?”

    When asked whether Leonsis or anyone on his team lobbied Virginia lawmakers directly, he responded by saying, “No, we’re not politicians.”

    Ongoing contact with Bowser

    Even though Leonsis had been public about his desire to move the Capitals and Wizards out of D.C., dialogue between him and Mayor Muriel Bowser never soured or stopped throughout the process, he said.

    Leonsis said they even ran into each other by chance at a conference in mid-January.

    “I was like, ‘Oh, hey, how’s it going?’” Leonsis said. “We both hugged each other, and she sent me a text the next day and said ‘It was great to see you, let’s keep the lines of communications open.’”

    “I said ‘awesome,’ and it took off from there,” Leonsis said. “It was a natural thing.”

    Bowser and Leonsis signed a letter of intent Wednesday, reaching an agreement on $515 million in public funding for an arena project.

    The deal keeps the teams in the District through 2050.

    “She was doing all of the right things and was recruiting us, which is why I made this pivot,” Leonsis said. “I thought that’s what Virginia was going to do with us.”

    The new D.C. project is set to include 200,000 square feet of expansion of the Capital One Arena complex into the nearby Gallery Place space, the creation of an entertainment district in the surrounding Chinatown neighborhood, and safety and transportation upgrades.

    D.C. Council members will take up the deal next week and are expected to pass it.

    “We have the opportunity to build a little bit higher on our building, and we have some work to do on some of the streets around the building, so we’re working with architects and designers,” Leonsis said, adding he wants the area to look “new and exciting and modern.”

    Upgrades will include better premium dining, new technology, suites and plumbing and “back-of-house improvements.”

    “It’ll be a very comprehensive, multiyear change,” Leonsis said. “We have to have a growth mindset to grow our revenues because we’re in competition against other teams, other cities, and we have to look and act like we’re a big market.”

    The Associated Press contributed to this report.

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Nick Iannelli

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  • DC reaches deal to keep Capitals, Wizards at Capital One Arena until 2050 after Va. agreement falls apart – WTOP News

    DC reaches deal to keep Capitals, Wizards at Capital One Arena until 2050 after Va. agreement falls apart – WTOP News

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    The Washington Capitals and Washington Wizards would stay in D.C. until 2050, under a $515 million deal announced Wednesday by the mayor and teams’ owner.

    Ted Leonsis, right, owner of the Washington Wizards NBA basketball team and Washington Capitals NHL hockey team, speaks during a news conference with Washington DC Mayor Muriel Bowser, left, and DC Council Chairman Phil Mendelson, center, at Capitol One Arena in Washington, Wednesday, March 27, 2024. (AP Photo/Stephanie Scarbrough)(AP/Stephanie Scarbrough)

    The Washington Capitals and Washington Wizards would stay in D.C. until 2050 under a $515 million deal announced Wednesday by Mayor Muriel Bowser and the teams’ owner Ted Leonsis.

    The deal was announced just hours after the City of Alexandria said negotiations to bring the two teams to Northern Virginia have ended.

    “We are just very, very pleased to be able to support one of our most important employers, one of our most popular destinations, and continue to invest in catalytic initiatives and businesses that will bring the District all the way back,” said Bowser, who was wearing a Wizards jersey during the news conference at Capital One Arena announcing the deal.

    The agreement still needs D.C. Council approval, and Council Chair Phil Mendelson said it will be up for a vote Tuesday and is expected to pass. The $515 million deal will be folded into the city’s capital budget to be paid over the next three years.

    “I am confident that will go through the council,” Mendelson said. “It’s easier to do business in the District of Columbia than in some other jurisdictions.”

    Renovations to the arena and surrounding area are projected to cost $800 million total, according to a news release from the District, and will include arena upgrades, expanded retail and concessions, and improvements to pedestrian and vehicular traffic flow.

    “How do we make this the greatest downtown? You can’t do it alone, and I felt that we were really in a good partnership, as opposed to where I thought I would have a great partnership,” Leonsis, managing partner of Monumental Sports & Entertainment, said, referring to his failed deal in Virginia. “Now, they did have one thing that we didn’t have and the mayor identified and we talked about that — land, space. We need space.”

    Leonsis said more space around Capital One Arena has become available recently, which will allow Monumental to fulfill its vision of a sports and entertainment complex in Downtown D.C., rather than having to relocate to Potomac Yard.

    In December, D.C. offered $500 million in upgrades to the arena to keep the teams from moving to Virginia. The agreement announced Wednesday includes an additional $15 million for improvements to the alley connecting Gallery Place to Capital One Arena.

    In all, the deal calls for nearly 200,000 square feet of newly programmed space throughout the arena and in the Gallery Place building next door.

    “It is an offer that’s not only good for the teams, it’s good for Washington, D.C., and I dare say it’s good for the entire region,” Bowser said. “We, with the teams, have identified additional opportunities to expand their footprint right here in Downtown and we’re also going to invest $15 million in that.”

    The deal will also bring 17 dedicated officers around the arena from two hours before games to two hours after games, according to a news release from Monumental, which added the agreement also gives it the ability to close off F Street two hours before games.

    What went wrong in Virginia

    The $2 billion plan for a sports and entertainment complex in Potomac Yard, championed by Republican Gov. Glenn Youngkin, ran into trouble in the Virginia General Assembly after Democratic opposition.

    “We negotiated a framework for this opportunity in good faith and participated in the process in Richmond in a way that preserved our integrity,” the City of Alexandria said in a statement. “We trusted this process and are disappointed in what occurred between the Governor and General Assembly.”

    In a statement to WTOP, Youngkin expressed his disappointment with the General Assembly for not agreeing to the deal.

    “Virginians deserve better. A one-of-a-kind project bringing world-class athletes and entertainment, creating 30,000 jobs and $12 billion in economic activity just went up in smoke. This transformational project would have driven investment to every corner of the Commonwealth,” Youngkin said.

    In December 2023, Leonsis, along with Youngkin and Alexandria City Mayor Justin Wilson, announced their plans to bring the Capitals and Wizards to Potomac Yard with a new arena and entertainment district.

    However, it had immediate opposition from residents and local officials. Earlier this month, Virginia lawmakers approved a two-year budget, which didn’t include Youngkin’s proposed arena deal. State Sen. L. Louise Lucas strongly opposed the plan because it would rely on bonds from the state and city governments.

    In a post on the social media platform X, Lucas said Virginia is celebrating that “we avoided the Monumental Disaster!”

    State Sen. Scott Surovell told WTOP the governor’s unwillingness to compromise was an issue.

    “If Monumental and the governor had been willing to have a real conversation about a way to get this done, we might have been able to find a path to get this done,” Surovell said. “I’m hopeful the governor will chalk this up and pay attention and if there’s any more opportunities like this he will bring us in a lot earlier in the process so that we can have input in it before he signed any contracts or greets anything.”

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Thomas Robertson

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  • Another Alexandria arena project bill dead, negotiations will move to budget bill – WTOP News

    Another Alexandria arena project bill dead, negotiations will move to budget bill – WTOP News

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    Another bill that would create a sports arena in Alexandria, Virginia, for the Wizards and Capitals is dead, according to the Prince William County delegate who sponsored it.

    Another bill that would create a sports arena in Alexandria, Virginia, for the Wizards and Capitals is dead, according to the Prince William County delegate who sponsored it.

    House Appropriations Committee Chairman Luke Torian, a Democrat, said his stand-alone bill, that would establish a sports and entertainment authority that could fund the project by issuing bonds will not be taken up by the Senate.

    Torian was informed by Senate Appropriations Committee Chairwoman L. Louise Lucas (D) that Torian’s bill, HB1514, would not be docketed, so would not be heard and would die, according to an aide for Torian.

    Torian was told his bill would not be heard since Lucas had also declined to docket Sen. Scott Surovell’s Fairfax County casino bill, which died last week without a hearing.

    More Wizards, Capitals Arena News

    However, Torian remains optimistic that the arena plan will be kept alive during discussion of a House budget bill, HB29, which includes setting up a state sports and entertainment authority.

    Monumental Opportunity, an entity created by Ted Leonsis’s Monumental Sports & Entertainment, which owns the Capitals and Wizards, said it was not surprised that Torian’s bill will die.

    The group said it’s been encouraged to see support for the budget language, as well as Torian and Surovell’s stand-alone bills, but has always known the budget conference committee would have the final say.

    Torian’s comments about his discussions with Lucas were first reported by the Washington Post.

    WTOP is seeking comment from the office of Virginia Gov. Glenn Youngkin, who participated in the announcement of the sports and entertainment district project.

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Neal Augenstein

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  • Is the deal to build Wizards, Capitals arena in Alexandria falling apart? Here’s where things stand — and what the key players are saying – WTOP News

    Is the deal to build Wizards, Capitals arena in Alexandria falling apart? Here’s where things stand — and what the key players are saying – WTOP News

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    A deal that would move the Washington Wizards and Capitals to a new arena in Alexandria continues to take heat with Monumental Sports and Entertainment jumping to address concerns from both D.C.’s mayor and Virginia Senate Democrats Monday. 

    Ted Leonsis (left) and D.C. Mayor Muriel Bowser. (AP/Alex Brandon; WTOP/Kate Ryan)

    A deal that would move the Washington Wizards and Capitals to a new arena in Alexandria continues to take heat with Monumental Sports and Entertainment jumping to address concerns from both D.C.’s mayor and Virginia Senate Democrats Monday.

    It comes days after a positive signal for the proposal, when legislation clearing the way for the move to Potomac Yard advanced in the Virginia House Appropriations Committee on Friday.

    The bill will go before the House floor before being put to a vote in the Senate  — where the bill seemed to hit a sizable snag on Monday. Despite the new hurdles, a spokeswoman for Monumental Sports responded to the pushback and said the company hasn’t given up on relocating the teams.

    What Virginia Sen. Louise Lucas says: ‘It’s dead’

    Sen. L. Louise Lucas, the chair of the powerful Senate Finance & Appropriations Committee, announced over the weekend legislation clearing the way for the Monumental move to Alexandria would not receive a hearing in her committee.

    She later told reporters that as far as she’s concerned the measure is “dead,” while speaking about her decision to not docket the bill.

    “The Governor refuses to negotiate and simply believes this co-equal branch of government should rubber stamp the ‘Glenn Dome,’” Lucas said. “The proposal relies on the Commonwealth’s moral obligation that if the project’s revenues are insufficient to cover the debt, taxpayers are on the hook to bail out this project.”

    Lucas and Senate Majority Leader Scott Surovell said Youngkin did not bring Democrats into negotiations about bringing the teams to Alexandria soon enough.

    “At every turn, the Governor thinks that he should be able to use the executive branch to enrich his friends,” Lucas said.

    Docketing the bill killed the Senate version of the legislation — while another bill continues to make progress in the Democrat-controlled House of Delegates.

    After that bill moves through the House, it will need to pass in the Senate before reaching the governor’s desk.

    More Monumental News

    What Mayor Muriel Bowser says: ‘We want our teams’

    On Monday, D.C. Mayor Muriel Bowser commented on the ongoing battle over the team’s home base Monday, while announcing the city’s plans to open a center staffed with police and other public servants in Chinatown.

    Bowser said Monumental Sports has made more money at Capital One Arena in the last three years than they’ve ever made before.

    “These events are packed, concerts, boxing and the games, even though we don’t have teams that are winning,” she said. “Monumental Sports is doing just fine here. That’s not to say that they don’t have legitimate concerns, and a legitimate expectation that we address those concerns.”

    She also addressed an op-ed she penned in The Washington Post last week in which she wrote that the city intends to “enforce the leases with Monumental that require the Wizards and Capitals to play at the arena through 2047 and the Mystics to play in Congress Heights through 2037.”

    “We want our teams, and so we want to be very clear about that,” Bowser said Monday in reference to the article. “We also want to be clear that we and I have a responsibility to do what’s best for D.C. taxpayers, and we are prepared to work hand in hand with Monumental.”

    In the op-ed, Bowser also said that the “city owns the land under the Capital One Arena and will own the building should Monumental break its lease.”

    Monumental has said it will pay off the bonds connected to playing at Capital One to allow the teams to leave earlier than planned. The mayor said even if Monumental pays up, she won’t use the money to pay off the bonds.

    When asked about whether D.C. can do that, Bowser said she couldn’t comment on the city’s legal strategy.

    What Monumental Sports says: ‘Focused 100% on Virginia’

    During a Monday afternoon news conference, a Monumental spokeswoman said the company remains optimistic about the Virginia move.

    “We’re encouraged by what happened in the House and we believe that when the House bill moves to the Senate, we’ll continue our conversations,” Monica Dixon said on behalf of Monumental Monday.

    She reiterated the company’s stance that it can end the Capital One lease early, despite the mayor’s earlier comments.

    “We’re focused 100% on Virginia, and believe that if we have the opportunity to share information and talk about the benefits of this proposal that it will pass and we’ll be able to move forward with the Virginia plan,” Dixon said.

    In reference to the mayor’s comments hinting at possible legal action against the company, Dixon said: “I think if this is something that results in litigation, we ought to let that process play out. I hope it won’t. But we do feel confident about the lease we signed and the amendments.”

    When asked about the mayor’s comments about the team’s profits at Capital One, Dixon said there’s a difference between “profit and value.”

    “Our valuation has certainly gone up, just like many other sports ownerships across the country, and that has nothing to do with where we play,” she said. “It has everything to do with the value that Ted (Leonsis) has created in Monumental Sports.”

    Dixon also said the company is “encouraged by the House vote” and addressed some comments from Lucas criticizing the proposal.

    “We’re eager to engage with the Senate Finance Committee members and all the legislators to make sure that they have all the information they need to evaluate this proposal because we believe that the proposal will be incredibly beneficial, not to just our fans, our players and the sporting community, but to the city of Alexandria and the commonwealth,” Dixon said.

    When asked about how the company will address concerns from Senate Democrats when the bill crosses over, Dixon said “I’m confident that we can get to an understanding that will allow the project to be considered.”

    After the proposed move was initially announced, team owner Ted Leonsis suggested Monumental may continuing hosting events at Capital One Arena and move the WNBA’s Washington Mystics to the venue. Moving the women’s team is something the mayor has spoken out against.

    “All of that only happens if the mayor and the city think that is the right thing for the city,” Dixon said. “We offered it because we believe in downtown, and we know we can we can bring people downtown for those events.”

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Jessica Kronzer

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  • Bill to help relocate Washington Capitals, Wizards sails through 1st Virginia legislative hearing – WTOP News

    Bill to help relocate Washington Capitals, Wizards sails through 1st Virginia legislative hearing – WTOP News

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    Legislation underpinning a plan to relocate the NBA’s Washington Wizards and NHL’s Washington Capitals across the Potomac River to northern Virginia easily cleared an early hurdle in the state legislature Friday.

    A general view showing the site for a proposed new stadium for the Washington Wizards NBA basketball team and Washington Capitals HNL hockey team, Wednesday, Dec. 13, 2023, in Alexandria, Va. Virginia Gov. Glenn Youngkin has reached a tentative agreement with the parent company of the NBA’s Washington Wizards and NHL’s Washington Capitals to move those teams from the District of Columbia to what he called a new “visionary sports and entertainment venue” in northern Virginia. (AP Photo/Alex Brandon)(AP/Alex Brandon)

    RICHMOND, Va. (AP) — Legislation underpinning a plan to relocate the NBA’s Washington Wizards and NHL’s Washington Capitals across the Potomac River to northern Virginia easily cleared an early hurdle in the state legislature Friday.

    Lawmakers on the Virginia House Appropriations Committee voted 17-3 to advance the measure, a top priority of Republican Gov. Glenn Youngkin, to the floor of the House of Delegates. Though the bill passed overwhelmingly, several senior Democratic legislators took care to say that their support for the measure at this point was in the interest of keeping negotiations over the deal going.

    “This process is going to take the rest of our session at a minimum to enact or not enact this legislation,” Democratic Del. Mark Sickles of Fairfax County, who supported the bill, said before the committee vote.

    The legislation could result in a legacy-defining project for Youngkin, a former college basketball player. Virginia is the nation’s most populous state without a major pro-sports franchise, something government officials of both parties over the course of decades have sought to change.

    Youngkin and entrepreneur Ted Leonsis, an ultrawealthy former AOL executive and the CEO of the teams’ parent company, Monumental Sports and Entertainment, announced in December that they had reached an understanding on a deal to relocate the Capitals and Wizards.

    The plan calls for the creation of a $2 billion development in the Potomac Yard section of Alexandria that would include an arena, practice facility and corporate headquarters for Monumental, plus a separate performing arts venue, all just miles from Capital One Arena, where the teams currently play in Washington.

    Monumental and the city of Alexandria would put in upfront money under the terms of the deal, but about $1.5 billion would be financed through bonds issued by a governmental entity this year’s legislation would create.

    The bonds would be repaid through a mix of revenues from the project, including a ticket tax, parking fees, concession taxes, income taxes levied on athletes performing at the arena, and naming rights from the district, among other sources. Proponents say those sources will more than cover the debt. But about a third of the financing would be backed by the “moral obligation” of the city and state governments, meaning taxpayers could be on the hook if the project revenues don’t come through as expected.

    Critics of the project, including some who spoke against the bill Friday, asked why any tax subsidy was appropriate.

    “This is a bad deal for every taxpayer in Virginia. We are saddling our children and grandchildren with 40 years of debt payments to help a billionaire get wealthier and wealthier,” said Andrew Macdonald, a former Alexandria city council member and an organizer of the Coalition to Stop the Arena at Potomac Yard, which held a rally on Capitol Square a day earlier.

    The committee advanced a substitute version of the legislation that was initially introduced by Democratic Del. Luke Torian. It included a newly added provision that would require legislators to sign off on the deal again next year in order for the legislation to go into effect, something critics of the project cheered.

    Monica Dixon, president of external affairs and chief administrative officer for Monumental, said the company was “very pleased” with Friday’s developments.

    “We’ll take a look at it, but don’t expect we’ll have any major concerns,” Dixon said of the revised bill, which is likely to see further revisions as it goes through the legislative process.

    Democratic legislative leaders, who control the General Assembly, have generally signaled openness or even optimism about the passage of the arena legislation this year. But they have stopped short of a full-throated endorsement of the project, both citing concerns still to be worked out and making clear the proposal is a bargaining chip in broader discussions about their own priorities.

    Sen. L. Louise Lucas, who chairs the Senate finance committee, has said she wants consideration of increased public school funding, toll relief for her Hampton Roads region and legalized recreational cannabis sales in conjunction with the arena deal.

    A Senate committee had at one point been expected to take up that chamber’s version of the bill on Thursday. But the hearing was delayed, and by Friday afternoon it was unclear when the bill might be heard ahead of Tuesday’s “crossover” deadline by which non-budget bills need to clear their chamber of origin.

    Senate Majority Leader Scott Surovell, the sponsor of that chamber’s bill, said in a text message that his caucus is still working to reach consensus about changes to the legislation as introduced.

    Many critics of the project have focused on the transportation impacts in an already congested part of Virginia.

    The state released a transportation plan last week to address Alexandria residents’ concerns about traffic. Officials say they will commit $200 million to transportation improvements in the corridor, which is already seeing expanded use with a new Amazon headquarters and a new Virginia Tech campus under construction.

    The plan seeks to have half of arena patrons arrive by transit, bike or walking and relies heavily on a newly built, $370 million Potomac Yard Metro station. But plan data shows that the station, as currently configured, would be overwhelmed at peak hours on game nights with “extreme crowding” lasting for 60 to 90 minutes.

    The plan estimates that improvements to the station and increased service could reduce crowding to 30 to 45 minutes.

    ____

    Barakat reported from Falls Church, Virginia.

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  • ‘Stop the Arena’ group buses to Richmond to lobby against Potomac Yard project – WTOP News

    ‘Stop the Arena’ group buses to Richmond to lobby against Potomac Yard project – WTOP News

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    “We’re trying to represent the thousands of Alexandria residents who are opposed to this project,” said Andrew MacDonald, the former vice mayor of Alexandria.

    ‘Stop the Arena’ protestors head to Richmond to speak with government officials about stopping the creation of a new sports arena and entertainment district in Potomac Yards.(WTOP/Neal Augenstein)

    A busload of Alexandria residents determined to prevent a massive arena and entertainment complex from being built in the Potomac Yard neighborhood left before sunrise Thursday to lobby in Richmond.

    The group departed from the parking lot in front of the Target on Richmond Highway, a few hundred yards from where Monumental Sports & Entertainment, the state of Virginia and the city of Alexandria plan to build the new arena, which would become the new home to the Washington Wizards and Capitals.

    “We’re trying to convince the general assembly to not approve funding for this, the sports arena,” said Andrew MacDonald, the former vice mayor of Alexandria, and a longtime resident. “We’re trying to represent the thousands of Alexandria residents who are opposed to this project.”

    The Coalition to Stop the Arena at Potomac Yard organized the event, which includes a noon rally outside the general assembly in Richmond.

    “The concerns are many,” MacDonald said. “There’s traffic impacts and the financial impacts — we don’t feel this is a good economic development plan for either Alexandria or Virginia.”

    MacDonald said the public has been cut out from the decision-making process. He also said that the city does not need an influx of new visitors.

    “Alexandria already has that. We’re a historic town, so people already come here for that,” MacDonald explained.

    Thursday afternoon the advocates plan to meet privately with members of the general assembly, before returning to Alexandria in the evening.

    “I think it’s pretty clear. This arena is better off in D.C. where they have good transportation, good Metro, good roads,” he said.

    “We’re all neighbors,” MacDonald added. “I don’t think we need this sort of development to make Alexandria more attractive.”

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