Virginia legislators confirmed Thursday that no stadium is in this year’s budget proposal, pumping the brakes on plans to move the Washington Wizards and Capitals to Alexandria.
The plan to build a new arena in Potomac Yard was a priority for Ted Leonsis, who owns the teams, and Republican Gov. Glenn Youngkin.
The stadium plan, announced in December, received blowback from legislators in Richmond and residents in Alexandria. While supporters touted the economic benefit of moving two professional teams to the state, opponents noted concerns about the use of public funding and the effects on traffic in Potomac Yard.
Plans for the arena called for $1.5 billion in funds from public bonds, with Leonsis’ Monumental Sports & Entertainment contributing $400 million to the project. Any public funding was dependent on state lawmakers agreeing to establish a stadium authority to issue the bonds and oversee the arena.
Mr. Youngkin has touted the arena as a boon for Virginia’s economy. He has said the development would create 30,000 jobs and billions of dollars in tax revenues.
MSE didn’t respond to The Washington Times’ request for comment.
A bill to establish a stadium authority died in Virginia’s Senate after clearing the House of Delegates during the 2024 session. Opponents like state Sen. L. Louise Lucas believed the governor’s proposal was overly dependent on public funds.
“I believe that the Senate is about to make a colossal mistake,” the governor said Thursday. “The opportunity … put Virginia truly in a position that we had a win, a big win, for the commonwealth.”
Mr. Youngkin has touted the arena as a boon for Virginia’s economy. He has said the development would create 30,000 jobs and $12 billion in tax revenue.
Mr. Youngkin has said the arena would have no upfront cost, no new taxes, and would not impact the state’s AAA credit rating.
“We were going to do something truly transformative,” Mr. Youngkin said. “I believe this is a massive mistake for the commonwealth.”
Opponents have claimed that Virginia’s $1.5 billion in bonds would be the largest public subsidy for a private arena. The issued bonds could also reduce the state’s debt capacity, according to a report from the Public Resources Advisory Group.
Ms. Lucas has been the loudest voice in Richmond against the arena. The chairwoman of the Senate Finance and Appropriations Committee blocked stadium bills and led the charge against the arena in budget negotiations.
“It places too much risk on the commonwealth,” Ms. Lucas said in February. “The governor’s proposed deal has many unanswered questions and potential conflicts of interest.”
On Wednesday, she posted a meme on X that showed an image of her gleefully standing over a grave, with the tombstone reading, “Youngkin and Leonsis’ $5 billion arena.”
The exclusion of the arena drew applause from the Coalition to Stop the Arena at Potomac Yard, a group that has opposed the development since it was announced in December.
Arena opponents and supporters disagree on the true cost of the arena. While supporters like Mr. Youngkin say the stadium could be built for around $2 billion, Ms. Lucas and other arena opponents say the true cost could be double that. A report from the District of Columbia’s Office of the Budget Director estimated that the price tag would be $5.5 billion.
“The longer the public and independent analysts get to consider the evidence presented about the proposed arena deal, the worse it looks for the commonwealth,” the coalition said in a letter to the budget committee this week. “The consensus of decades of economic analyses … shows that publicly funded stadiums and arenas do not produce the economic development benefits their promoters repeatedly claim.”
Delegate Luke Torian, chairman of the House Appropriations Committee, said he expects the full budget proposal to be released Thursday. Members of the General Assembly will have 48 hours to consider the budget before they’re scheduled to adjourn Saturday.
The Potomac Yard arena is still not dead, even if it’s absent from the proposed budget. Mr. Youngkin could introduce a separate bill or a budget amendment to force legislators to reconsider the deal. The General Assembly will return to Richmond on April 17 to assess the governor’s vetoes and amendments.
“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,” the coalition said in a statement. “We urge the governor … to abandon this deal.”
Despite the continued obstacles, Mr. Youngkin still believes the arena could happen.
“I am an optimist,” the governor said Thursday. “I will never stop fighting for Virginia’s success.”
• Liam Griffin can be reached at lgriffin@washingtontimes.com.
Please read our comment policy before commenting.