New sports stadiums or arenas are typically the source of controversy in terms of how who will pay for them and where will they be located.
The latest professional sports teams seeking a move and/or upgrade of facilities are the NBA’s Washington Wizards and NHL’s Capitals, who share a building and owner in Washington D.C. The owner of both clubs, Ted Leonsis, and Virginia Gov. Glenn Youngkin announced plans for both teams to build on a new site in Alexandria, Virginia, that would include a 9 million square foot entertainment district.
The facilities would include an arena, a Wizards practice facility, performing arts venue and an expanded esports facility, according to Channel 4 in Washington. The Potomac Yard area, the location of the proposed arena, would also feature the redevelopment of a shopping center into residential and office space, a hotel, and community gathering spaces.
The cost of the project is expected to reach $2 billion.
The teams currently play in downtown D.C. at Capital One Arena, where the team has a lease until 2047, but reports say the ownership group can get out of the lease in 2027 by paying a $36 million bond.
The teams recently asked D.C. for some $600 million in improvements to Capital One Arena. Washington D.C. Mayor Muriel Bowser announced a funding plan to renovate and modernize the current arena over a three-year period starting next year in an effort to keep the team downtown.
Dave Lubach is executive editor of the facility market.
