The move to Alexandria for the Washington Wizards and Capitals hit another roadblock Tuesday with the announcement that an influential group of labor unions will oppose the project.

The American Federation of Labor and Congress of Industrial Organizations, which features 56 member unions, said the proposed arena and its campus are designed to take advantage of workers with low-paying jobs.

“Construction and hospitality jobs in the campus’ privately-owned entertainment district will be low-wage jobs because the developer would not accept any labor agreements,” Virginia Diamond, president of the AFL-CIO’s Northern Virginia chapter, said in a statement. “Taxpayers should not make a massive investment in a project that is only going to create more low-wage jobs for local workers.”

The proposal to build an arena in Potomac Yard calls for a $400 million upfront investment from Ted Leonsis’ Monumental Sports and Entertainment, which owns the Wizards and Capitals. State officials would issue at least $1.4 billion in public bonds to finance the rest of the project.

Union leaders said developer JBG Smith has not worked with them to protect workers on the project. They outlined concerns about wage theft and the exploitation of immigrant workers.

“This is a bad deal for workers, plain and simple,” said Paul Schwalb of UNITE HERE Local 25, a union for entertainment workers. “JBG Smith wants to line their pockets on the back of Virginia workers. No thank you.”

A bill to create a Virginia stadium authority passed through the House of Delegates earlier this month. The proposal has not yet passed the Senate, where it faces opposition from leading Democrats. If the Senate does not pass the legislation, Republican Gov. Glenn Youngkin could negotiate a stadium authority through budget proposals.

• Liam Griffin can be reached at lgriffin@washingtontimes.com.