A controversial $2 billion development project in Alexandria, Virginia, that included a new arena for the Washington Wizards and Washington Capitals to relocate from the District of Columbia has been axed, according to the city’s mayor, who cited disagreements on financial interests and infrastructure.
The project was announced last December. (Photo by Patrick Smith/Getty Images)
Alexandria Mayor Justin Wilson said in a statement Wednesday the city is disappointed negotiations “did not result in a proposal that protected our financial interests and respected these community values,” adding the project proposal got “caught up in partisan warfare in Richmond.”
Wilson said Alexandria was adamant that the consideration of a proposal include transportation system improvements, affordable housing, job creation and more for the city.
The deal, announced last December, would have seen real estate firm JBG Smith develop a 9 million-square-foot district in Alexandria featuring a new arena for the Wizards and Capitals, a Wizards practice facility and a media studio in addition to residential, retail and hospitality facilities.
JBG Smith didn’t immediately respond to Forbes’ request for comment.
Wizards and Capitals owner Ted Leonsis and D.C. Mayor Muriel Bowser said Wednesday they were finalizing a deal that, if approved, would keep the teams in Washington until 2050, according to The Washington Post. The city would spend $515 million to help Leonsis modernize the 27-year-old Capital One Arena under the deal.
We estimate Leonsis’ net worth at $3.1 billion.
The development project, which would have been known as the Potomac Yard Entertainment District, was a public-private partnership involving the city of Alexandria, JBG Smith and Leonsis’ company, Monumental Sports and Entertainment. Future phases of the development were estimated to generate about $12 billion in economic impact for the city and the Commonwealth. Some 30,000 jobs were also expected to be created by the project, which was slated to break ground in 2025 and result in the arena opening in late 2028.
Caps, Wizards would stay in D.C. under deal announced by Bowser, Leonsis (Washington Post)
Capitals and Wizards Virginia arena deal is dead, Alexandria mayor says (Axios)