WASHINGTON (CN) — In a blow to the nation's capital, the owners of the Washington Wizards and Capitals announced a tentative agreement with Virginia's governor for a new arena in Alexandria Wednesday.
"One of the big components of being on a team is being selfless," said Darius Baxter, chief engagement officer of the GOOD Projects, a DC nonprofit helping the impoverished, in an interview. "I think this is one of the most selfish acts, at least economically, that I've seen in a very, very long time."
The $2 billion public-private partnership between Virginia and Monumental Sports would bring a state-of-the-art arena, a media studio for Monumental Sports Network, a practice facility for the Wizards, a performing arts venue, and an expanded esports facility to the city of Alexandria's Potomac Yard neighborhood in addition to hotels, restaurants and retail stores.
In a statement, Virginia Governor Glenn Youngkin called the proposed project the most visionary sports and entertainment development in the world. The Republican will need the Democrat-controlled legislature to approve the plan this spring to stay on track for breaking ground in 2025 and opening in 2028.
The project would neighbor Virginia Tech's Innovation Campus, which will open next year and house the university's graduate computer science and computer engineering programs.
"The Commonwealth of Virginia is truly a catalyst for innovation," Virginia Secretary of Commerce and Trade Caren Merrick said in a statement. "This transformational project represents a unique opportunity for the region's premier sports and entertainment company to forge meaningful connections with Virginia Tech, and other corporate partners in the region."
The Wizards and Capitals' current home, Capital One Arena, is in the heart of downtown Washington, neighbored by the city's Chinatown neighborhood. Downtown's validity is critical to the economic health of the entire city, according to Baxter.
The Washington Wizards, formerly the Bullets, and the Capitals moved from the Capital Center in Landover, Maryland, to Capital One Arena in 1997. The Capitals have succeeded in DC, winning a Stanley Cup 2018. The Wizards have routinely been at the bottom of NBA standings, but Baxter said fans continue to show up.
"I would understand if it's a situation where people aren't supporting the team or if it was a situation where stuff is falling out the ceiling, but we've been loyal to a team that's been bad for a very long time," Baxter said.
Baxter said he was surprised by the announcement, considering the city's incentives to Monumental Sports. The city chipped in $23 million in 2018 for opening a new sporting facility in downtown DC on the east campus of the former Elizabeth Hospital in Ward 8.
The facility serves as a practice facility for the Wizards, along with hosting Washington's WNBA team, the Mystics, and the Wizards's G-League affiliate team, Capital City Go-Go.
In a last-ditch effort to keep the franchises, DC Mayor Muriel Bowser on Tuesday offered Monumental $500 million to renovate Capital One Arena. Bowser said in a press conference Wednesday that they can expedite the process and start funding Monumental by the spring. She announced the creation of a task force aimed at revitalizing the neighborhood where Capital One Arena resides.
"This proposal represents our best and final offer and is the next step in partnering with Monumental Sports to breathe new life and vibrancy into the neighborhood and to keep the Washington Wizards and the Washington Capitals where they belong — in Washington, DC," Bowser said in a statement.
It would not be the first franchise to choose the suburbs over an urban downtown. Owners of franchises have gone from merely building stadiums to building entertainment districts with a Disney World-like feel.
The Florida Panthers of the NHL moved in 1998 from Miami to Amerant Bank Arena in nearby Sunrise, Florida, with nearly all of the $185 million used to build it coming from the public. The arena is next to Sawgrass Mills, the eleventh-largest mall in the country.
"We are all crumbling under the weight of capitalism," Baxter said with a chuckle when asked about the larger trend.
The Atlanta Braves of the MLB moved with the help of $300 million in public dollars in 2017 from Turner Field, a park they had only played in since 1997, in Southeast Atlanta, to Truist Park in Cobb County. The Braves built The Battery Atlanta, a $400 million entertainment district surrounding the ballpark that includes a 264-room hotel, apartments, office buildings, shops, bars and restaurants.
Professor of Practice at Georgia Tech Mike Dobbins said in an email that while moving to the suburbs may hurt, it can lead to future developments. Georgia State University acquired Turner Field and its surrounding parking lots for a large-scale expansion of the university's campus, including new private and student housing, academic, and retail space in addition to remodeling the baseball field into a football stadium.
"Yes, the Braves move was a blow, but a momentary one," Dobbins said. "Ever-growing Georgia State U. took over a trimmed-down stadium, and the parking lots all around have been replaced by now thriving mixed-use development. The adjacent neighborhoods are revitalized, albeit gentrified."
The Washington Nationals of the MLB and the Major League Soccer team DC United have relatively new stadiums that should keep them in DC for the foreseeable future. The Washington Commanders continue to play at FedEx Field in Landover, but new ownership has signaled a plan to move to a new site.
Baxter said he believed Bowser's ability to keep the teams in DC.
"It's not a done deal yet," Baxter said. "I have faith in Mayor Bowser to get the job done."
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