Key Virginia Senator Deals Setback To Potomac Yard Arena Bill
The $2B plan to bring a massive sports-anchored entertainment district to Northern Virginia hit a roadblock Monday, as a key state senator announced she had no intention of moving the bill through her committee.
Democratic Sen. L. Louise Lucas, who chairs Virginia's Senate Finance and Appropriations Committee, declined to docket the legislation needed to fund the arena on the committee's agenda.
When asked by reporters Monday if that meant the legislation was dead, Lucas responded, "As far as I’m concerned, it is," the Associated Press reported.
The bill is critical to move the arena-anchored development in Potomac Yard forward. Monumental Sports & Entertainment CEO Ted Leonsis announced his intention to move the Capitals and Wizards from downtown D.C. across the river in December. But the deal rests on $1.5B in bonds from the state that would be paid back over 40 years.
Lucas said she objects to the financing structure, which includes "moral obligation bonds," backed by the city and state, according to the AP, meaning that if revenues don't pan out, the onus to pay the difference would be on the taxpayer.
"As long as the full faith and credit of this Commonwealth is backing this project, my answer continues to be an absolute no," Lucas told reporters Monday, according to the AP.
Over the weekend, Lucas posted on X, formerly Twitter, saying that the bill was "not ready for prime time."
"This is what happens when Executive Branch doesn’t operate in good faith and doesn’t have respect for the Legislative Branch," she wrote.
Virginia Gov. Glenn Youngkin’s communications director told the AP in a statement that the governor remains confident that the Assembly "will come together because this project is good for the entire Commonwealth."
The bill had achieved an initial win just 72 hours earlier when Virginia's House Appropriations Committee passed it by a 17-3 vote.
The House committee passed Youngkin's proposed bill with some changes, including strengthening the General Assembly's control of the proposed Virginia Sports and Entertainment Authority and adding a provision that would require the legislature to reauthorize the bill next year in order for it to take effect.
These developments in Virginia's capital came as the bubbling tension between D.C. Mayor Muriel Bowser and Leonsis heated up over the weekend on social media.
That same evening that the bill passed the House committee, the Washington Post published an opinion piece from Bowser, who argued that the Capitals and Wizards should stay in the District for economic reasons, among other considerations. She called into question the feasibility of Leonsis’ plan in Virginia and reiterated that if the teams leave, D.C. will exert full control over the Capital One Arena building and land downtown.
She also reiterated that the District has an active $500M offer to Monumental to renovate the arena. Leonsis had reportedly requested $600M from the city for an $800M renovation.
"Our deal would mean Monumental can avoid any broken promises, breached leases or potential litigation to distract from building the most valuable regional sports company," Bowser wrote in the op-ed.
After Bowser posted the article on X, quoting a portion of it that said D.C. intends to hold Monumental to its lease requirement that the teams play at Capital One until 2047, Monumental pushed back with a post of its own.
We've been clear w/ @MayorBowser that we will honor agreements to play at the arenas. Caps & Wiz have the right to pay off the bond in 2027 & end the COA lease early – MSE plans to exercise that right. And the Mystics will play at ESA through 2037 (unless city agrees otherwise). https://t.co/kwIDVd7BQz pic.twitter.com/Cj1FUOX7HH
— Monumental Sports & Entertainment (@MSE) February 11, 2024
