Virginia eyes economic boom with world-class Entertainment District in Alexandria

Governor Glenn Youngkin today, Dec. 13, announced a $2 billion public-private partnership to create a world-class Entertainment District in the City of Alexandria at Potomac Yard.

This new nine million-square-foot district developed by JBG SMITH will feature the global corporate headquarters for Monumental Sports & Entertainment (MSE), an industry-leading Arena for the Washington Capitals and the Washington Wizards, a state-of-the-art Monumental Sports Network media studio, the Wizards practice facility, a performing arts venue, and an expanded esports facility.

The project is also expected to also bring new retail, residential, restaurants, hotels, conference, and community gathering spaces.

A partnership among the Commonwealth of Virginia, Monumental Sports & Entertainment, the City of Alexandria, and JBG SMITH, will also bring 650+ relocated MSE headquarters jobs to Potomac Yard.

The Arena, Phase 1, and future phases of development are estimated to generate a combined $12 billion in economic impact for the Commonwealth and City of Alexandria and create approximately 30,000 jobs over the next several decades.

Subject to legislative approval by the Virginia General Assembly, the Entertainment District will break ground in 2025 and open in late 2028.

“This is the most visionary sports and entertainment development in the world, bringing together entertainment, sports, and technology in the most advanced innovation corridor in the United States: a once-in-a-generation and historic development for the Commonwealth, sports fans, and all Virginians. The Commonwealth will now be home to two professional sports teams, a new corporate headquarters, and over 30,000 new jobs – this is monumental,” said Governor Glenn Youngkin.

The governor enthused, “This was only made possible through consistent collaboration between Virginia’s economic development team, the Monumental Sports & Entertainment team, the City of Alexandria, our administration and the Virginia General Assembly’s Major Employment and Investment Project Approval Commission, and JGB SMITH. Virginia is undoubtedly the best place to live, work, raise a family, and now to watch basketball or hockey.”

Va. Secretary of Finance Stephen Cummings was quoted as saying, “Ensuring a stable financing structure was the Commonwealth’s top priority, and we are confident this transformational project is a win-win for Virginia, the City of Alexandria, and Monumental Sports & Entertainment All project investments backed by the Commonwealth and the City will be paid back in full by incremental project revenues; there is no upfront investment by the Commonwealth and no existing taxes or tax increases are a part of this financing plan. This tremendous opportunity will drive billions in total economic impact over 40 years.”

Caren Merrick, Virginia’s Secretary of Commerce and Trade, enthused, “The Commonwealth of Virginia is truly a catalyst for innovation, and this transformational project represents a unique opportunity for the region’s premier sports and entertainment company to forge meaningful connections with Virginia Tech, and other corporate partners in the region, including Amazon, Boeing, and Raytheon. This district will generate tens of thousands of jobs and billions of dollars in economic impact, creating a prime regional destination.”

Sheppard Miller III. Secretary of Transportation, was quoted as saying, “Investments in the Commonwealth’s transportation infrastructure, including the Potomac Yard-VT Metro Station, enable developments like this to become powerful regional economic drivers. Today’s announcement underscores the importance of strengthening our multimodal transportation network, and it is exciting to see this world-class Entertainment District come to fruition.

Miller added, “We look forward to working with Monumental Sports & Entertainment and the City of Alexandria, as well as the regional business community, to ensure future investments in the National Landing corridor support the safe and reliable movement of automotive, pedestrian, and transit users to and from this cutting-edge District.”

“We are committed to providing world-class fan experiences while continuously evolving our teams, deepening community ties, and solidifying our role as leaders at the forefront of sports and technology,” said Monumental Sports & Entertainment CEO Ted Leonsis. “The opportunity to expand to this 70-acre site in Virginia, neighboring industry-leading innovators, and a great academic partner, would enable us to further our creativity and achieve next-generation, leading work – all while keeping our fans and the community at the forefront of everything we do.” 

“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 Alexandria Mayor Justin Wilson. “It is our collective strategy and vision for purposeful economic growth that will ensure Alexandria remains a vibrant, accessible, and inclusive community for all.”

Located on the Potomac River just across from Washington, D.C., the Entertainment District is easily accessible by all modes of transportation and is minutes from the newly opened Potomac Yard-VT Metro Station as well as Ronald Reagan National Airport, community bike paths and foot trails, and underground parking.

Joining National Landing as part of Potomac Yard, the Entertainment District will be adjacent to the Virginia Tech Innovation Campus and near Amazon HQ2, creating opportunities for unique partnerships between MSE and Virginia Tech focused on entrepreneurship, sports analytics, immersive technologies, and innovative new business and media strategies, according to the governor’s press release.

“We’re excited by Monumental Sports & Entertainment’s plans to be our neighbor in Potomac Yard,” said Virginia Tech President, Tim Sands. “We believe in the great potential of this location, and are eager to welcome others who are passionate about this community and building an exciting and vibrant future together.”

Del. Barry Knight, who chairs Virginia’s Major Employment and Investment Project Approval Commission, observed, “Securing this public-private partnership is truly a game changer for the City of Alexandria, the region, and the Commonwealth, benefiting a generation of Virginians and putting Potomac Yard on the map as a regional sports, entertainment, and innovation destination.The thousands of jobs and economic impact generated by this project cannot be overstated, and I am proud the MEI Commission could play a role.”

“Thanks to everyone who played a role in this historic project for the City of Alexandria and the Commonwealth,” said the MEI Commission’s Vice Chair Senator George Barker, who represents part of Prince William County. “Accelerating economic development in Virginia is a top priority, and the Entertainment District will have a ripple effect on the economy and catalyze additional investments for decades to come. I am pleased the MEI Commission could be part of the collaboration to help secure this critical project.”

Monumental Sports & Entertainment is one of America’s leading sports and entertainment companies. Its people, players, teams, and events bring excitement and joy to millions. The company invests and innovates to consistently raise the game so they can deliver extraordinary experiences that will inspire and unite their community, fans, and partners.

The Youngkin Administration and Virginia Economic Development Partnership worked with the City of Alexandria, JBG SMITH, and the General Assembly’s Major Employment and Investment (MEI) Project Approval Commission to secure the project for Virginia.

Here is a rundown of the financing envisioned for the proposed project.

In the upcoming General Assembly session, legislators will be asked to approve the creation of a new Virginia Sports and Entertainment Authority. The $2 billion transformational investment will be supported through bonds issued by the to-be-created Authority, as well as a $403 million investment by MSE. The bonds will be repaid through annual rent paid by MSE, arena parking revenues, District naming rights, and incremental taxes generated by the Arena and Phase 1 development. There is no upfront investment or inclusion of any taxes already being collected by the Commonwealth to repay the bonds and there will be no tax increases for local residents.

The City of Alexandria will also contribute $56 million toward the construction of the performing arts venue in partnership with MSE, and $50 million toward underground parking development. The land and buildings will be owned by the to-be-created Virginia Sports and Entertainment Authority. The Virginia Sports and Entertainment Authority will enter into a 40-year lease with the company.

The project includes $110 million in on-site infrastructure including site development and roadway, signal, and intersection improvements funded through the bonds. VDOT, Alexandria DOT, MSE, JBG SMITH, and transportation consultants continue to refine a detailed analysis of the National Landing corridor needs, with input from regional partners, the business community, and residents to ensure a safe, reliable, and successful Entertainment District. Potential transportation improvements will focus on transit, roadway, smart mobility, and neighborhood protection.

This public-private partnership is subject to legislative approval by the Virginia General Assembly and the City of Alexandria.

To learn more about the project,gp to http://www.monumentalalx.com.