A bill authorizing the construction of a new arena to bring the Washington Wizards and Capitals to Virginia passed through the state’s House of Delegates on Tuesday. The proposal, which would establish a stadium authority to issue public bonds, passed 59-40.
The bill will now cross over to the Virginia Senate.
Despite the House’s approval, anti-arena advocates said they feel good about their odds of stopping the project.
“Today’s vote was definitely not a show of strength. We believe the Virginia General Assembly will ultimately side with residents who oppose this project, but make no mistake, we are in this to win,” Jonathan Huskey, member of the Coalition to Stop the Arena at Potomac Yard, said in a statement. “This is a plan no one asked for and never made sense. In the coming days, weeks, and if needed, into next year, we’ll fight to explain this plan’s substantial financial risks and questionable revenue gains.”
The legislation has taken a hit in recent days. State Sen. L. Louise Lucas, a powerful Democrat, said the bill was dead on arrival in the Senate.
“As far as I’m concerned, it is [dead],” Lucas told reporters Monday. “As long as the full faith and credit of this commonwealth is backing this project, my answer continues to be an absolute no.”
The arena project, supported by Republican Gov. Glenn Youngkin, is contingent on bills to create a stadium authority. State officials could then issue $1.4 billion in public bonds to finance the project. They would then use tax and naming rights revenues from the arena to pay off the bonds.
Monumental Sports and Entertainment, which owns the Wizards and Capitals, would invest $400 million in the project.
“I’m encouraged by the continued bipartisan support for the one-of-a-kind economic development opportunity in Virginia that represents 30,000 jobs and $12 billion in new economic activity for the Commonwealth,” the governor said in a statement after the House vote. “The more decision-makers learn about this project the more they realize that the positive impact reaches all corners of the Commonwealth. … From toll relief in Hampton Roads to WMATA investments in Northern Virginia, from education investments in rural and urban school divisions to critical transportation arteries like I-81, Virginians know the revenues from this project will be felt in their communities.”
Arena opponents have shared concerns about traffic, construction, labor issues and taxpayer liability.
A report commissioned by the state said city officials would need $215 million to improve local roadways and the Metro. The Potomac Yard Metro station opened in May 2023. Experts noted that it is not equipped to handle stadium-sized volumes.
With its current set-up, the station would be “extremely crowded” for up to 90 minutes after an event at the proposed arena, the study said. With improvements, the station could handle high volumes of passengers, but it would still be crowded for 30 minutes after a game.
On Monday, Democrat Del. Luke Torian presented arena legislation to the House of Delegates with a few amendments. The proposal now includes a reenactment clause that would require legislators to approve the law again in 2025.
“Though we applaud the inclusion of a reenactment clause, the current House-passed version still has many problems, including a larger tax district than was originally suggested, which will siphon tens of millions of dollars per year from the Commonwealth and the City with the hope of paying off a massive, unnecessary debt, which can only be repaid by Youngkin raising Virginia’s taxes through a new ’ticket tax’ — even though he and the City promised there would be no new taxes,” Brian Hess of the Sports Fans Coalition said in a statement. “We urge the Senate to reject the House’s ‘half-baked Glenn-dome.’”
But Monumental Sports executives said they were optimistic about the bill’s chances in the Senate.
“We are so encouraged by the bipartisan support for this monumental opportunity to create jobs and generate revenue that will benefit the city, the region, and the entire Commonwealth of Virginia,” Monica Dixon, chief administrative officer of Monumental Sports and Entertainment, said in a news release. “This is a big step forward in the process, but we know it is not the last step. We believe this is the right project for Alexandria, for Virginia, and for our fans, players, coaches, and employees. We look forward to working with the leadership, members, and staff of the Virginia Senate to answer their questions and earn their support for this transformative economic opportunity.”
If the proposal does not clear the Senate, arena opponents believe Youngkin could still work to advance the stadium plans.
“Language similar to these proposals are included in the governor’s budget bill,” said John Breyault, vice president of public policy with the National Consumers League. “The arena deal could, like a zombie, come back in budget negotiations.”
• Liam Griffin can be reached at lgriffin@washingtontimes.com.
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