WASHINGTON (AP) — The NBA's Washington Wizards and the NHL's Washington Capitals… Staying in the District of Columbia It lasted a long time after plans to bring the team to Virginia fell apart and ownership and the city reached an agreement on a $515 million publicly funded arena project.
Mayor Muriel Bowser and owner Ted Leonsis signed a letter of intent Wednesday for a deal that will keep the team in the district through 2050. Both teams announced the development minutes later at a joint press conference at Capital One Arena.
“It was a great day. I'm really relieved,” Leonsis said.
The project includes a 200,000 square foot (18,580 square meter) expansion of the arena complex into the nearby Gallery Place space, the creation of an entertainment district in the city's surrounding Chinatown district, and safety and transportation improvements. It is planned.
“We are the current and future home of the Washington Capitals and Washington Wizards,” Bowser said. “As Ted likes to say, we're going to be together for a long time.”
The District of Columbia Board of Regents will consider the agreement next week and is expected to pass it, Chairman Phil Mendelsohn said at a news conference.
The agreement between Monumental Sports & Entertainment and the city was announced by officials in Alexandria, Virginia, across the Potomac River. Discuss the new arena That would have been the end of that team.
Leonsis acknowledged that Virginia has land, an advantage that D.C. doesn't have.
“It's an arms race to build something bigger, better, higher quality,” Leonsis said, referring to the new entertainment community, which won't be as large as the 12 acres (4.9 acres) envisioned in the deal. “We are currently participating in the project, but we are running out of space.” hectares) were dedicated to Arena in Virginia. “But enough is enough.”
Mr. Leonsis, an ultra-wealthy entrepreneur, generally prefers to avoid discussing Virginia, but the political divide between Republican Gov. Glenn Youngkin and Democrats who control the Legislature derailed his plans. He said he threw several jabs at the state, which connected.
This development is a blow to Yongkin. announced a few months ago He thunderously outlined the Alexandria proposal, calling it a “once in a lifetime” opportunity.
In a statement Wednesday, the governor expressed disappointment and frustration that the plan that would have generated $12 billion in economic investment was canceled and said the blame lies with Democrats.
“This should have been our deal and our opportunity. The General Assembly says, 'Thank you, Monumental, for coming to Virginia and saying we want to generate $12 billion in economic investment. Let's try and make it happen.' But that’s not the case, personal and political agendas overrode the agreement,” he said.
Democrats countered that Yonkin mismanaged the proposal. House Speaker Don Scott said he was shocked by Youngkin's statement, saying it sounded like it was written by a teenager.
“He's lost his sense of decency right now,” Scott said, adding that the tone of the statement suggested Youngkin might retaliate by vetoing the budget lawmakers sent earlier this month. Ta.
The city of Alexandria, which first announced the news, said in a statement on its website that it was disappointed with the outcome.
“We negotiated the framework for this opportunity in good faith and participated in the process in Richmond in good faith,” the statement said. “We trusted the process and are disappointed in what happened between the governor and the General Assembly.”
Virginia's plan calls for creating a $2 billion development in Alexandria's Potomac Yard neighborhood that would include not only a new arena but also Monumental's practice facility and headquarters, as well as an independent It also includes performing arts venues.
The General Assembly was asked to create an authority that would issue bonds to finance most of the project, to be paid back with a combination of anticipated tax revenues collected from the development, with some support from the city and state governments.
Yonkin and other supporters said the development would create tens of thousands of jobs and generate new tax revenue in excess of what was needed to finance it.
But the plan met with opposition from the labor unionAlexandria residents were concerned about traffic conditions, and D.C. officials worried about losing teams. destroy downtown Washington.
Youngkin and other supporters also failed to win support from Democratic Sen. L. Louise Lucas of Portsmouth, who chairs the Senate Budget Committee. She used her position to block the bill, citing a variety of concerns, most importantly the deal's funding structure: The use of moral obligation bonds puts taxpayers and state finances at risk. Lucas said.
Lucas celebrated the proposal's passage on Wednesday. She posted on social media a cartoon of herself brushing away a basketball with the word “rejected” superimposed on her. She wrote, “Today we're celebrating averting a Monumental disaster in Virginia as Monumental announced they'll be in Washington, DC!”
Leonsis has changed his tone on social media in recent days, noting the large crowds that have flocked to Capital One Arena this month for everything from the Capitals and Wizards to ACC tournament basketball and a Zach Bryan concert. . he posted on Wednesday Monumental had expected more than 400,000 fans to pass through the turnstiles in March.
Leonsis and Bowser said they began discussions to keep the team in the district shortly after Virginia unveiled its proposal.
“Ten minutes ago, I had never signed a piece of paper,” Leonsis said at a news conference.
___
Rankin reported from Richmond, Virginia, and Barakat reported from Falls Church, Virginia.