Alexandria ends negotiations for proposed Potomac Yard arena, entertainment district; Caps, Wizards to stay in DC

Makea Luzader
·4 min read
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ALEXANDRIA, Va. (DC News Now) — The City of Alexandria said Wednesday that negotiations regarding a proposed arena and entertainment in Potomac Yard ended and that the project, which would have brought the Washington Capitals and Washington Wizards to Virginia, would not move forward.

In a news conference later in the day, D.C. Mayor Muriel Bowser announced a deal with Monumental Sports for the Washington Capitals and Wizards to stay in the District.

In making the announcement, Alexandria said that negotiations “did not result in a proposal that protected [its] financial interests and respected these community values.”

As stewards of the City’s economic health and development, City leaders believed the Potomac Yard Entertainment District opportunity was worthy of community discussion and Council consideration. We negotiated a framework for this opportunity in good faith and participated in the process in Richmond in a way that preserved our integrity. We trusted this process and are disappointed in what occurred between the Governor and General Assembly.

Statement from the City of Alexandria

‘Red flags’ and ‘millions for new programs’: Alexandria arena push continues

Alexandria Mayor Justin Wilson released a video Wednesday and said that Alexandria was focused on several core values:

  • Improving the existing transportation system,

  • Expanding affordable housing,

  • Protecting Alexandria’s bond rating,

  • Protecting existing and future residents from financial risk,

  • Providing substantial future revenue for the city’s services, and

  • Providing quality jobs.

“We have come to the conclusion that the general assembly process is not going to produce a proposal that protects our financial responsibilities and respects our community’s values,” Wilson said in the video.

The announcement came after a months-long debate that would have brought Monumental Sports, the owner of the Caps and Wizards, to Potomac Yard.

Gov. Glenn Youngkin first announced the proposed plan in December 2023.

In February, the Virginia Senate killed a bill that would have created a stadium authority for the proposed arena. In March, D.C. Attorney General Brian Schwalb penned a letter to Monumental Sports saying that its contract with the District would not allow a move until 2047.

Bowser announced in a press conference Wednesday that the D.C. Council and Monumental Sports CEO Ted Leonsis had signed an agreement that would keep the two teams in the District at least until 2050.

“As Ted likes to say, we’re going to be together for a long time,” Bowser said with a smile.

She said the agreement included a pledge that D.C. would invest $500M to transform Capital One Arena.

“It’s a great day, and I’m really relieved,” Leonsis said during the press conference.

DC Attorney General: Monumental contract would not allow move until 2047

“We are disappointed that this proposal was not able to be thoughtfully considered on its merits by legislators, stakeholders, and ultimately now, by our community, and instead got caught up in partisan warfare in Richmond,” Wilson said in Wednesday’s video.

JBG Smith, which was supposed to develop the entertainment district, described the plan as a “once-in-a-generation opportunity to build a world-class arena and entertainment district at Potomac Yard” in a statement Wednesday.

It said the plan was “derailed largely due to partisan politics and, most troubling, the influence of special interests and potential pay-to-play influences within the Virginia legislature.”

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. This should have been our deal and our opportunity, all the General Assembly had to do was say: ‘thank you, Monumental, for wanting to come to Virginia and create $12 billion of economic investment, let’s work it out.’ But no, personal and political agendas drove away a deal with no upfront general fund money and no tax increases, that created tens of thousands of new jobs and billions in revenue for Virginia. I’d like to thank Ted Leonsis and the Monumental team, the City of Alexandria, JBG Smith and countless other partners for their professionalism, belief in Virginia and fortitude. Congratulations to Monumental for striking a great deal, I’m sorry you won’t be in Virginia

Statement from Virginia Gov. Glen Youngkin

“We are resolute in our commitment to ensure the City’s future is determined by our community. We will continue to pursue economic opportunities that improve our quality of life and economic health. Alexandria welcomes commercial investment, and our residents, businesses, and stakeholders deserve the chance to make educated decisions about how we continue to welcome new businesses to our city. We will continue to focus our efforts on bringing quality commercial opportunities to our community in the future,” Alexandria’s statement said.

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