The Former Potomac Yard Entertainment District Proposal
City of Alexandria Statement on Potomac Yard Entertainment District Proposal
The City of Alexandria has ended negotiations related to the Potomac Yard Entertainment District opportunity and the proposal will not move forward.
As stewards of the City’s economic health and development, City leaders believed the Potomac Yard Entertainment District opportunity was worthy of community discussion and Council consideration. We negotiated a framework for this opportunity in good faith and participated in the process in Richmond in a way that preserved our integrity. We trusted this process and are disappointed in what occurred between the Governor and General Assembly.
We engaged in substantial community engagement over the past months that informed our negotiations and would have made the proposal even better for our community. That continued conversation would have also allowed us to consider how a project of this scale could support our plans for growth and our community’s future.
Throughout this process, the City has been committed to ensuring that our role in this project not only added financial value but promised that our core values would remain an integral part of this opportunity. The City was adamant that any favorable consideration of the proposal included substantial and thoughtful improvements to the existing transportation system; included affordable housing; protect our stellar AAA bond rating; protect existing and future residents from financial risk; provided substantial future revenue for city and school services; protected existing neighborhoods; and provided quality jobs for our community. We are disappointed negotiations did not result in a proposal that protected our financial interests and respected these community values.
We are resolute in our commitment to ensure the City’s future is determined by our community. We will continue to pursue economic opportunities that improve our quality of life and economic health. Alexandria welcomes commercial investment, and our residents, businesses, and stakeholders deserve the chance to make educated decisions about how we continue to welcome new businesses to our city. We will continue to focus our efforts on bringing quality commercial opportunities to our community in the future.
This framework of a deal depends on the creation of formal agreement documents as well as Virginia General Assembly and Alexandria City Council Approval.
Monumental Sports & Entertainment intends to anchor an Entertainment District in Potomac Yard. MSE’s campus would include:
- The global headquarters for Monumental Sports & Entertainment and its more than 650 employees
- An industry-leading arena for both 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
The project represents a transformational investment in Alexandria and Virginia over the coming decades. Upon completion it’s expected to generate:
- Roughly 2.5 times the economic output of what would otherwise be built based on current development plans*
- 30,000 direct and indirect jobs
- 9+ million square foot entertainment district, including new hotels, retail, residential, restaurants, conference, and community gathering spaces
- 300+ events a year
*To learn more about the project and the methodology used to measure its economic impact, please click the link below to read a summary of the “Potomac Yard Entertainment District Impact Analysis” performed by HR&A Advisors. Additional information related to the project’s fiscal impact will be released as project terms are finalized in early 2024. The full proposal and its details must be considered and approved by Alexandria’s City Council in order to proceed.
Read the Impact Analysis Study
This world-class Entertainment District and regional destination will be possible through a public-private partnership between leaders deeply committed to the success of this community and the region: Monumental Sports & Entertainment, the Commonwealth of Virginia, the City of Alexandria, and JBG SMITH.
The tax revenues being contributed by the Commonwealth and the City are newly created revenues generated by the project that would not otherwise exist.
The land and buildings will be owned by the to-be-created (by the Virginia General Assembly in their 2024 session) Virginia Sports and Entertainment Authority.
The $2 billion transformational investment will be supported through:
- $1.05 billion Project Revenue Bonds issued by a new Sports & Entertainment Authority
- $416 million Lease Revenue Bonds issued by a new Sports & Entertainment Authority
- $403 million contribution from Monumental Sports & Entertainment
- $106 million contribution from the City of Alexandria, to build a performing arts venue in partnership with MSE and related underground parking
MIX of SOURCES:
42% – MSE cash + lease payments
53% – tax revenues generated by MSE business and activities and other incremental tax revenues that wouldn’t be otherwise created
5% – City contribution
The bonds will be paid back through:
- Lease payments made by Monumental Sports & Entertainment
- Incremental state and local tax revenues that wouldn’t be otherwise created
- Parking tax revenues generated on-site
- District naming rights
The City’s initial investment comes from reserves in the capital budget and will be paid back by business revenues generated by the performing arts venue, shared with the operator, MSE.
Archive of Community Engagement
City Council Legislative Meeting 3/12/24
City Manager Jim Parajon and AEDP CEO Stephanie Landrum provided an update on the proposed Potomac Yard Entertainment District.
City Council Update 2/27/24
AEDP CEO Stephanie Landrum and the City of Alexandria’s Director of Finance Kendel Taylor provide project updates to City Council and answer questions.
Virtual Transportation Community Conversation 2/22/2024
The City of Alexandria and representatives from VDOT and engineering firm Kimley-Horn hosted a virtual community conversation on transportation in the proposed Potomac Yard Entertainment District.
City Council Legislative Meeting 2/13/2024
City Manager Jim Parajon and CEO Stephanie Landrum provided an update on the 2024 Virginia General Assembly Session, and a Potomac Yard Entertainment District Update.
Potomac Yard Entertainment District Listening Session 2/8/2024
The City of Alexandria held a virtual listening session to discuss small business and economic opportunity related to the proposed Potomac Yard Entertainment District.
You can watch the recording of the session here:
Potomac Yard Entertainment District Listening Session 2/1/2024
The City of Alexandria held a virtual listening session to discuss transportation and traffic management related to the proposed Potomac Yard Entertainment District.
You can view the recording of the session here:
Potomac Yard Entertainment District Town Hall 1/27/24
City Council held a Town Hall that included a short presentation on the proposed Potomac Yard Entertainment District as well as Councilmembers answering submitted community questions, concerns, and feedback.
You can watch the recording of the session here:
Watch the Town Hall in Spanish, Amharic, or Arabic
Potomac Yard Entertainment District Listening Session 1/25/2024
The City of Alexandria held a virtual listening session to discuss schools, housing, and other community benefits related to the proposed Potomac Yard Entertainment District.
You can view the recording of the session here:
Watch the Listening Session in Spanish, Amharic, or Arabic
City Council Legislative Meeting 1/23/2024
CEO Stephanie Landrum and the City of Alexandria’s Financial Advisors Jimmy Sanderson and Ty Wellford provide project updates to City Council and answer questions regarding the project financing.
Potomac Yard Entertainment District Listening Session 1/18/2024
The City of Alexandria held the first weekly virtual listening session covering the financial proposal and economic impact of the project.
You can watch the recording of the session here:
Watch the Listening Session in Spanish, Amharic, or Arabic
Del Ray Citizens Association Town Hall 1/8/24
The DRCA was excited to host Senator Adam Ebbin and Delegate Elizabeth Bennett-Parker for a virtual town hall to discuss the Potomac Yard Arena proposal. Mayor Justin Wilson and Stephanie Landrum also joined the meeting to share additional details and context.
You can watch the recording of the session here:
City Council Public Hearing Broadcast 12/16/23
City Manager Jim Parajon and President and CEO of the Alexandria Economic Development Partnership (AEDP) Stephanie Landrum gave a presentation on the proposed arena and entertainment district in Potomac Yard and responded to questions from City Council about next steps for the proposal and community engagement.
You can watch the recording of the session here:
Watch the Broadcast in Spanish, Amharic, or Arabic