A rendering of the planned entertainment district in Potomac Yard.
Virginia governor Glenn Youngkin was joined by officials from the City of Alexandria, Monumental Sports & Entertainment, and JBG SMITH as he announced the framework of an agreement for a public-private partnership to create a $2 billion Entertainment District in Potomac Yard that will include new homes for the NHL’s Washington Capitals and the Washington Wizards of the NBA.
“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,” said Mayor Justin Wilson. “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.”
In addition to a new arena for the Capitals and Wizards, the new district will be home to the business headquarters of Monumental Sports & Entertainment, an expanded esports facility, a performing arts venue and new retail, restaurant and conference spaces. Assuming the proposal receives the necessary approvals, ground could break on construction in 2025 and the teams would move to Virginia in 2028.
“The proposed Monumental Campus represents a transformative step forward for our fans, our company, and the entire DMV region.”
— Monumental Sports CEO Ted Leonsis
According to the city’s press release, the project is expected to catalyze economic growth, generating 30,000 jobs and an economic impact of $12 billion over the next several decades. This includes millions of dollars over the project term to create affordable housing, offer rental and homeownership assistance, and to invest in transportation improvements and education.
“This exciting new project is the result of decades of thoughtful long-term strategic planning and a clear vision for growth across Alexandria,” said Alexandria Economic Development Partnership President and CEO Stephanie Landrum. “From the Virginia Tech Innovation Campus to the new Potomac Yard-VT Metro Station, Alexandria has created the ideal environment and location for this exciting project.”
The project will be adjacent to the Virginia Tech Innovation Campus in the Alexandria portion of National Landing. It will expand Monumental's presence in Northern Virginia, where the company already has its Capitals’ practice facility in Arlington, and support more than 650 jobs, 221 events a year, and 180 global partners and sponsors.
“The proposed Monumental Campus represents a transformative step forward for our fans, our company, and the entire DMV region,” said Monumental Sports & Entertainment CEO Ted Leonsis. “I have always believed there is a higher calling in sports — to unify our community, build a lasting legacy over multiple generations, and lift all our neighbors towards a shared sense of prosperity. Today, we deepen that commitment as we enter a phase of rapid expansion in service to our fans, employees, and partners."
The $2 billion investment will be supported through bonds issued by the proposed Virginia Sports and Entertainment Authority, as well as contributions from MSE. 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. No existing taxes will be used to support the project, and there are no proposed tax increases for local residents.
The development would total approximately 9 million square feet with the arena to be constructed on a currently unoccupied 12-acre site between the Metro entrance and the first phase of the Virginia Tech Innovation Campus.
The site is owned by JBG SMITH and its joint venture partner and will be sold to a proposed Virginia Sports and Entertainment Authority.
JBG SMITH serves as the master developer of approximately 55 acres surrounding the project with a total potential development of approximately 8.1 million square feet, of which JBG SMITH owns approximately 1.5 million square feet.
In 2018, Amazon selected National Landing for its second headquarters after conducting an extensive North American search. In June of this year, Amazon unveiled its 2.1 million square foot headquarters and has hired more than 8,000 employees to date in the region.
Alexandria will begin a community engagement process, including a series of community meetings and workshops, which will kick off in early 2024. Additional project information will be shared over the coming weeks, and interested residents can visit MonumentalALX.com to sign up to receive updates.