Updated Friday, March 8 at 7:30 a.m.
Virginia lawmakers did not include funding for the arena or its governing structure in the budget it passed and sent to Gov. Glenn Youngkin Thursday, putting a major hurdle in the way of developing the proposed arena in Potomac Yard.
The arena would be the new home for the Capitals hockey team and the Wizards basketball team, and it would spur significant development in the Potomac Yard neighborhood, including a new entertainment venue, restaurants, housing and retail.
The news is a victory for those who oppose the arena. The decision to remove the arena from the budget primarily came down to one senator, Senate Finance and Appropriations Chairwoman L. Louise Lucas (D-Portsmouth), who opposed financing the development.
As a procedural matter, Gov. Youngkin could still send a budget amendment or a new bill to the legislature. To pass, either the new budget amendment or the new bill would need a majority of legislators to vote in favor of it in both the House of Delegates and the Senate.
“The next step is for the General Assembly, and particularly the Senate, to embrace the opportunity. It’s their move,” Youngkin said Thursday.
In early February, the office of Gov. Glenn Youngkin sent out an editorial composed by Roanoke Valley business leaders listing the ways the arena in Alexandria would benefit southwest Virginia. Among them: "A rising tide lifts all boats."
"Why should we care about revenue generated from a project far away from us? Because we all do better when Virginia’s economy is strong, and opportunities such as this to strengthen our entire economy in such a substantial way are rare. Put simply, the revenue generated upstate will flow downstate and provide critical resources for projects in our community," they wrote.
In addition, the Alexandria Economic Development Partnership and many other groups have weighed in with their support, including the Alexandria Chamber of Commerce (the Chamber ALX); the Northern Virginia Black Chamber of Commerce; the Northern Virginia Association of Realtors; and the Virginia Restaurant, Lodging, and Travel Association.
The Old Town North Alliance Tuesday evening hosted a virtual community engagement session with AEDP's Stephanie Landrum, city council member and OTN resident Sarah Bagley and a representative from the Stop the Arena Coalition (see more about the meeting here); OTNA is likely to come out in favor of the arena as long as certain conditions are met, particularly regarding traffic.
However, a growing number of Alexandria residents, with backing from the Coalition to Stop the Arena nonprofit, have gone to Richmond specifically to talk to officials about why the arena is a bad idea. They have had several meetings with Sen. Lucas.
In a release posted Thursday the Coalition to Stop the Arena wrote: "The Coalition is pleased that the General Assembly listened to the residents of Alexandria and citizens throughout the Commonwealth. While there are still many hurdles to overcome before Governor Youngkin’s vanity project is consigned to the dustbin of history, the momentum is clearly against him and his billionaire enablers."
