MonumentalALX.com
Gov. Glenn Youngkin at Potomac Yard, Dec. 13, 2023.
Local and state officials have announced plans to build a new professional sports arena at Potomac Yard. In addition to the arena, the new neighborhood will include restaurants, public spaces, a performing arts venue, retail, hotels and more.
The project has been in the works for more than half a year, but officials kept the details very quiet until today.
Monumental Sports and Entertainment will move its global headquarters to the new neighborhood, along with the new arena for the Washington Capitals and Washington Wizards, a 6,000-seat performing arts venue, a Washington Wizards practice facility and space for e-sports.
"This is MONUMENTAL," said Gov. Glenn Youngkin Wednesday morning in Potomac Yard.
"It is a great morning to be an Alexandrian!" said Mayor Justin Wilson, who was joined by the entire Alexandria City Council. Also in attendance was Alexandria Economic and Development Partnership head Stephanie Landrum (who said she hadn't slept at all), Sen. Mark Warner, Monumental Sports and Entertainment's Ted Leonsis (wearing a Virginia Tech tie), JBG Smith CEO Matt Kelly and others.
Ted Leonsis, Monumental Sports and Entertainment
In a press release sent just before the in-person announcement, Alexandria officials wrote, "Today, the City of Alexandria, the Commonwealth of Virginia, Monumental Sports & Entertainment, and JBG SMITH announced a framework of an agreement for a public-private partnership to create a world-class Entertainment District in Alexandria at Potomac Yard."
The in-person announcement took place just after 9 a.m. at 3201 University Drive, east of the Target at Potomac Yard and north of the new Potomac Yard Metro station. It came two days after The Washington Post reported that the owners of Capital One Arena and the Washington Capitals and Wizards were considering moving the sports teams out of Washington, D.C.
According to Alexandria officials, "The $2 billion dollar transformational investment in this Entertainment District will catalyze economic growth and community building in Alexandria, generating 30,000 jobs and a total economic impact of $12 billion over the next several decades. This includes millions of dollars over the project term to create affordable housing, offer rental and homeownership assistance, and to invest in transportation improvements and education."
"This is nothing short of a game-changer for our local economy," said JBB's Kelly.
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The project needs to go through many levels of state and local approval, permitting, design, environmental impact studies and more. According to the project website, "This framework of a deal depends on the creation of formal agreement documents as well as Virginia General Assembly and Alexandria City Council Approval."
The project may break ground in 2025, with the arena opening in 2028.
Wilson touted the benefits that will come from the project, including support for transportation, education, affordable housing and more. Wilson said he's excited about the partnership, which he says will be "mutually beneficial for decades to come."
The announcement came the morning after the Washington, D.C. government announced its council could pass a bill giving Monumental Sports $500 million in financing to renovate the Capital One Arena in a bid to keep the sports teams downtown. It would also extend the team's ground lease beyond 2050. (Longtime residents surmised on various social media forums that the team threatening to move to the suburbs could have been a negotiating move to force the District to pay for upgrades at the current Capital One Arena. That proved to be untrue.) The team had requested $600 million from the District, leaving a gap of $100 million in their negotiations.
The Capital One Arena will remain "a great place," Leonsis said. The venue will host women's sports (Monumental Sports and Entertainment owns the Washington Mystics), concerts and other events. Leonsis said his company has a responsibility to continue to invest in Washington, D.C.
The District is trying to lure the Washington Commanders professional football team back to the District from Landover, Maryland, and the Washington Nationals are requesting funds for baseball stadium upgrades. The District is facing a budgetary crunch.
This isn't the first time the words "arena" and "Alexandria" have gone together. In July 1992, then-Washington Commanders (formerly Redskins) owner Jack Kent Cooke ended stadium negotiations with the District and announced plans to build a football stadium at Potomac Yard in Alexandria. The plan was abandoned in October of that year as Cooke and former Virginia Gov. L. Douglas Wilder could not come to an agreement.
Some Alexandria residents remain wary of the plan to build a professional basketball and ice hockey arena in Alexandria, noting concerns about the potential for increased crime and traffic that would affect nearby residents. In the 2022-23 season, the Washington Wizards hosted an average of 17,300 attendees per game. The Washington Capitals averaged 18,500 attendees per game that year.
In addition, residents have voiced displeasure at the secrecy surrounding the decision, with seemingly no opportunity for resident input.
"I'm very, very. very focused on being a good neighbor," Leonsis said. He said having a personal touch, walking around the community and talking to residents will be important.
"We will do the right things in the right way for all the communities we serve," Leonsis said.
The following is the complete press release send out Wednesday, Dec. 13 by the City of Alexandria:
Today, the City of Alexandria, the Commonwealth of Virginia, Monumental Sports & Entertainment, and JBG SMITH announced a framework of an agreement for a public-private partnership to create a world-class Entertainment District in Alexandria at Potomac Yard.
Pending completion of agreements and General Assembly and City Council approval, the new Entertainment District will feature an industry-leading arena for both the Washington Capitals and Washington Wizards, the global business headquarters for Monumental Sports & Entertainment, an expanded esports facility, and a performing arts venue — in addition to new retail, restaurants, and conference and community gathering spaces.
“Alexandria’s ability to attract this ambitious project is a direct result of the success of previous investments made in Potomac Yard and across our city,” said Alexandria Mayor Justin Wilson. “Our City Manager Jim Parajon led a talented team, working hand-in-hand with the Alexandria Economic Development Partnership, to bring us this opportunity. A project this special will help the City realize our collective strategy and the vibrant vision for this neighborhood and for our city as a whole.”
The $2 billion dollar transformational investment in this Entertainment District will catalyze economic growth and community building in Alexandria, generating 30,000 jobs and a total economic impact of $12 billion over the next several decades. This includes millions of dollars over the project term to create affordable housing, offer rental and homeownership assistance, and to invest in transportation improvements and education.
“This exciting new project is the result of decades of thoughtful long-term strategic planning and a clear vision for growth across Alexandria,” said Alexandria Economic Development Partnership President and CEO Stephanie Landrum. “From the Virginia Tech Innovation Campus to the new Potomac Yard-VT Metro Station, Alexandria has created the ideal environment and location for this exciting project. We look forward to continuing our work with the community this arena will serve as well as any other potential future tenants as we move to the next stages of planning and development.”
Twenty years ago, the Alexandria community adopted a vision to invigorate Potomac Yard in a way that would enhance the community’s quality of life, create an environment for businesses large and small to grow, highlight the city as a top destination for regional community members and tourism, and showcase the rich diversity of Northern Virginia and the DMV. The Entertainment District is an ideal next step in realizing this vision and connecting Virginia, D.C., and Maryland as a year-round regional destination.
The project will be adjacent to the Virginia Tech Innovation Campus in the Alexandria portion of National Landing, enhancing the broader community and further establishing Northern Virginia as a global leader in innovation.
“We’re excited by Monumental Sports & Entertainment’s plans to be our neighbor in Potomac Yard,” said Virginia Tech President, Tim Sands. “We believe in the great potential of this location, and are eager to welcome others who are passionate about this community and building an exciting and vibrant future together.”
This Entertainment District is an ideal fit for the vision for Potomac Yard and represents the next step in Monumental Sports & Entertainment’s business evolution. The project will expand Monumental's presence in Northern Virginia, where the company already has its Capitals practice facility, and support more than 650 jobs, 221 events a year, and 180 global partners and sponsors, allowing the company to continue to innovate across business, media, sports and entertainment, and collaborate with the vibrant and innovative community in new and exciting ways.
“The proposed Monumental Campus represents a transformative step forward for our fans, our company, and the entire DMV region,” said Monumental Sports & Entertainment CEO Ted Leonsis. “I have always believed there is a higher calling in sports — to unify our community, build a lasting legacy over multiple generations, and lift all our neighbors towards a shared sense of prosperity. Today, we deepen that commitment as we enter a phase of rapid expansion in service to our fans, employees, and partners."
The $2 billion transformational investment will be supported through bonds issued by the proposed Virginia Sports and Entertainment Authority, as well as contributions from MSE. The bonds will be repaid through annual rent paid by MSE, incremental taxes generated by the facility, parking fees, and district naming rights. Monumental and the City of Alexandria will also contribute $56 million each toward the construction of the performing arts venue. No existing taxes will be utilized to support the project, and there are no proposed tax increases for local residents.
This agreement framework is the first step in a process to bring to life this world-class Entertainment District. The City will begin an extensive community engagement process, including a series of community meetings and workshops, which will kick off in early 2024. Additional project information will be shared over the coming weeks, and interested residents can visit MonumentalALX.com to sign up to receive updates.
To learn more about the project, please visit MonumentalALX.com.
