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Monumental Sports & Entertainment owner Ted Leonsis and Virginia Gov. Glenn Youngkin (R) will appear together at an event in Alexandria's Potomac Yard area on Wednesday, according to several people familiar with the details, speaking on condition of the We spoke on the condition of anonymity in order to have private conversations.
Monumental hasn't said definitively whether it would move the Washington Capitals and Wizards across the Potomac River. But Wednesday's event, coming just days after a crucial vote by a group of Virginia lawmakers on a plan, suggests a formal announcement is imminent.
The joint appearance comes like that District officials have been in discussions with Leonsis about renovations to the current Capitals and Wizards home downtown Capital One Arena. D.C. Mayor Muriel E. Bowser (D) did not immediately respond to a request for comment.
Under a preliminary proposal drawn up between Virginia and Monumental, which requires additional approval from state and local lawmakers, the teams' new facility would anchor a much larger mixed-use project in Alexandria. Before Wednesday's event, tents could be seen near the Potomac Yard subway station on Tuesday evening.
Monumental has asked the District for $600 million in public funds for a major renovation of Capital One Arena, and some D.C. officials see the project as a key to revitalizing the struggling downtown around the facility. The district is also grappling with looming competition over the future site of the next Commanders football stadium, requests for upgrades from the Washington Nationals baseball team and strict budget constraints.
If the plan with Virginia moves forward, both the National Basketball Association and National Hockey League teams would move to a new facility in Alexandria, according to seven people familiar with negotiations over the plan, all speaking on condition of anonymity to discuss details.
A person briefed on the Alexandria proposal said a stadium authority in Virginia would own the larger mixed-use complex and lease it to Monumental. The “small mini-city development” would also include a smaller concert hall and a “huge” underground parking garage, this person said. It will be built on land owned by real estate developer JBG Smith.
The state's Major Employment and Investment Projects Approval Commission, made up of a dozen Virginia lawmakers, voted unanimously to approve the plan Monday afternoon, according to two people familiar with the negotiations. Any deal between the state and Monumental would require additional approval from the full General Assembly and Alexandria City Council.
A spokeswoman for Youngkin did not respond to requests for comment.
Leonsis has been complaining about a mortgage for several years with unfavorable terms for the Capital One Arena, which he estimated in 2016 cost him $36 million annually. He called it “the worst construction deal in professional sports” and suggested he leave town once he paid off the mortgage.
Built in 1997, the arena is one of the older facilities in the NHL and NBA. There could still be concerts and college basketball games if Monumental's contract with Virginia goes through. Monumental also includes the Mystics, who play at another arena in Southeast Washington.
Potomac Yard, a former railroad hub that was once considered the site of a soccer stadium, has long been targeted by Alexandria authorities as a potential site for redevelopment. But any arena and its adjacent complex would also provoke opposition from residents in surrounding suburban areas because of the added traffic and the impact of flooding.
Two people familiar with Virginia's proposal said it includes about $200 million in transportation improvements to support the new arena, although it did not specify which roads would be affected. Both people said there are discussions about expanding capacity at the Potomac Yard subway station, including adding a ramp that would connect the station directly to the planned arena.
Youngkin has lobbied several Democrats in the House and Senate for the project, according to two people familiar with his efforts who spoke on condition of anonymity to discuss private conversations.
This outreach effort – notable for a governor who did not have good relations with many Democrats and did not regularly lobby lawmakers of either party – began immediately after Republicans lost control of the House of Representatives and failed to control the Senate in the General Assembly The Nov. 7 election will change, the two people said.
With Democrats leading both chambers, Youngkin must pass legislation that would create an athletic authority to oversee funding for the project and approve the additional transportation funding.
Several prominent Democrats declined to comment on the project Tuesday, saying they wanted to wait for Youngkin to formally unveil it. But the few who spoke up signaled that they weren't on board yet.
“I am told this deal will not use any state money and will have no impact on the debt capacity of the City of Alex or Virginia. “Obviously, this is a trust but verify situation that must be a true win-win to earn my support,” Del wrote. Marcus B. Simon (D-Fairfax) on X, formerly known as Twitter.
State Sen. L. Louise Lucas (D-Portsmouth), incoming chairwoman of the powerful Senate Finance and Budget Committee, called the project a bargaining chip for regional or Democratic priorities.
“While some people want sports stadiums… I want tolls gone in Hampton Roads *and* I want recreational marijuana sales,” she tweeted. “I guess we'll have to find compromises this session.”
Meagan Flynn, Nicki Jhabvala and Sam Fortier contributed to this report.