Reply to Wizards and Caps could be moving to Potomac Yard

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Is this all just a ploy to get the District to pay attention, fund the renovation of the Verizon Center, and clean up the Chinatown area?[/quote]

I really think this, for a few reasons. IMO the location for the new arena doesn't seem to make a whole lot of sense. It lacks the road and transit infrastructure to handle gameday crowds, and it's not really central. The whole thing just seemed to happen very fast and is clearly quite tentative (they called it a "framework for an agreement" or something strange like that). It seems like it's going to be met with a ton of local opposition from area residents too. All in all I'm very curious to see how this pans out. [/quote]

The framework still needs to be approved by the Virginia legislature, since the state has to create (1) a sports bond authority and (2) cosign the bonds as a municipal obligor. The state is on the hook for $1B in new debt if the tax revenues don't meet projections. The Dems control the legislature, so Youngkin will need to compromise with them. And even then, I'm not sure RoVA voters want the state to take on another $1B in debt to fund a NoVA arena/

Separately, Alexandria will need to issue hundreds of millions in new bond debt for their commitment to the project.

Lots of ways for this to get derailed. Youngkin is desperate to change the conversation and Leonsis is desperate to shake out more concessions from DC. Leonsis is going to be in a bad spot in 2027 when his ground lease under the CapOne arena expires. DC is going to want to increase his rent big time. So he's trying to posture his moves now while he's still in a strong negotiating position and downtown DC is struggling with foot traffic. [/quote]

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