Virginia Leaders Take Steps Toward Funding Sports District, Metro System
The process of moving D.C.'s NHL and NBA teams across the river to Virginia has taken a key step forward.
On Friday, two of Virginia's Democratic lawmakers introduced legislation to facilitate funding for the proposed $2B entertainment district, set to house the Washington Capitals and Wizards beginning in 2028.
Approval from the General Assembly is one of the remaining hurdles that must be crossed to advance the massive mixed-use development proposed for Alexandria's Potomac Yard. Monumental Sports & Entertainment CEO Ted Leonsis announced the public-private partnership in mid-December, but it isn't a done deal without approved funding from the state.
The proposed legislation on Friday lays out the path to fund the project using state bonds, and it creates a new authority to facilitate them.
Meanwhile, shortly after the legislation was posted online Friday, Virginia Gov. Glenn Youngkin took another step toward aligning the pieces of the proposed entertainment district by signaling support for increased funding for the Metro system, the Washington Post reported,
The development sits next to the newly opened Potomac Yard Metro station, but following the announcement, Metro General Manager Randy Clarke said he was not consulted about the deal ahead of time.
“There is a mutual commitment to collaborate together on a solution to WMATA’s short-term funding needs as part of this discussion to deliver a world-class transportation system,” Youngkin wrote in a statement reported by the Post.
That commitment seems to have played a major factor in the decision by the two Democrats, Senate Majority Leader Scott Surovell from Fairfax and House Appropriations Chairman Del. Luke Torian from Prince William, to unveil the bill.
In December, WMATA officials announced the transit system was facing a $750M deficit and asked for additional funding from the three jurisdictions that it services: D.C., Maryland and Virginia.
But Youngkin had previously seemed unwilling to dedicate additional funding to the transit system.
“I don’t think we would have carried the bill without the governor’s commitment to solve the Metro funding problem,” Surovell told the Post.
The bill unveiled Friday calls for a new sports authority to buy the land, build and own the properties on the 12-acre site, and lease them back to Monumental. The authority would also issue about $1.5B in bonds backed by future revenues anticipated from the development, the Post reported.
Youngkin called the bill “an important next step in the process for this one-of-a-kind sports and entertainment district that will generate $12 billion of economic impact and create 30,000 jobs in Virginia,” the Post reported.
The Virginia General Assembly's 2024 session began Jan. 10 and runs through March 9.
