Plans are in the works to develop a 9 million sq. ft. entertainment district at Potomac Yard in Alexandria.
The project is a public-private partnership between the City of Alexandria, the Commonwealth of Virginia, Monumental Sports & Entertainment, and JBG SMITH.
According the Alexandria Economic Development Partnership (AEDP), the entertainment district will include hotels, retail, residential, restaurants, conference, and community gathering spaces. Other standout elements include:
- The global headquarters for Monumental Sports & Entertainment and its more than 650 employees
- An arena for the Washington Capitals and Washington Wizards
- A state-of-the art Monumental Sports Network media studio
- The Wizards practice facility
- An expanded e-sports facility
- A performing arts venue
AEDP says the entertainment district will host over 220 events a year.
On Bloomberg’s Squawk Box, Governor Glenn Youngkin said it will be “the most state-of-the-art sports and entertainment district in America” that will anchor “the most technologically advanced corridor in America.”
According to a statement from the City, “this Entertainment District will catalyze economic growth and community building in Alexandria, generating 30,000 jobs and a total economic impact of $12 billion over the next several decades.”
Alexandria said those economic impacts include millions of dollars for affordable housing, rental and homeownership assistance, and investments in transportation improvements and education.
Approval & Timeline
Although Alexandria and the Governor are expressing the sort of excitement you’d expect of a done deal, this entertainment district is dependent on the completion of an unspecified number of agreements and it needs General Assembly and City Council approval.
If the necessary approvals are achieved, AEDP said the plan is to break ground in 2025 with the arena opening in late 2028.
Who’s Paying for This?
“It’s a $2 billion development investment. This kind of innovation requires the most innovative public-private partnership that I have seen in my entire career where we have the city of Alexandria, the Commonwealth of Virginia, and Monumental Sports all winning together,” Youngkin added.
And that “winning” supposedly isn’t going to require State tax dollars.
Governor Youngkin said, Virginia won’t may any upfront contribution. The State will be supporting “with incremental tax receipts and other receipts from the sports and entertainment district.”
According to the City’s statement, “The $2 billion transformational investment will be supported through bonds issued by the proposed Virginia Sports and Entertainment Authority, as well as contributions from MSE.”
Alexandria said the “bonds will be repaid through annual rent paid by MSE, incremental taxes generated by the facility, parking fees, and district naming rights. Monumental and the City of Alexandria will also contribute $56 million each toward the construction of the performing arts venue.”
Alexandria also offered the assurance that, “No existing taxes will be utilized to support the project, and there are no proposed tax increases for local residents.”
Part of Alexandria’s Vision
According to the City’s statement, this is a step toward realizing a vision that started 20 years ago “to invigorate Potomac Yard in a way that would enhance the community’s quality of life, create an environment for businesses large and small to grow, highlight the city as a top destination for regional community members and tourism, and showcase the rich diversity of Northern Virginia and the DMV.
Alexandria Mayor Justin Wilson said “Alexandria’s ability to attract this ambitious project is a direct result of the success of previous investments made in Potomac Yard and across our city.”
“Our City Manager Jim Parajon led a talented team, working hand-in-hand with the Alexandria Economic Development Partnership, to bring us this opportunity. A project this special will help the City realize our collective strategy and the vibrant vision for this neighborhood and for our city as a whole,” Wilson added.
