Cardinal Way: Civility Rules encourages constructive dialogue on difficult issues. You can participate in the project by filling out this survey that asks your views: 1. Should the proposed arena be treated differently from any other economic development project? If so, why? 2. What economic impacts on Southwest and Southside should legislators look for when deciding whether to support the plan? 3. Would you be OK if this project went to Maryland? 4. What’s your favorite NBA or NHL team or do you have one?
See the other article in this package: “Sports arena in Northern Virginia is a lose-lose proposition for all Virginia taxpayers.”
Southwest Virginia will benefit greatly from the unique deal Gov. Glenn Youngkin struck with Monumental Sports and Entertainment to bring the Washington Capitals and Wizards to Northern Virginia. While the proposed location for the new arena is hundreds of miles away, the impact of this once-in-a-lifetime opportunity will be felt right here in our region.
Let us explain.
As the old saying goes, “a rising tide lifts all boats.” And the monumental tidal shift Gov. Youngkin started on the banks of the Potomac will undoubtedly make positive waves downstate.
To state the obvious, this is about so much more than bringing a hockey and basketball team to Virginia — though we are the largest state in the union without a single professional sports team and this proposal would bring two of them to our commonwealth in just a couple of years.
The projected revenue generated from this project is massive. It will generate billions in positive economic impact for the commonwealth. The revenue from this project is even more impressive when you consider the alternative. Without the arena, development at the Potomac Yard site would produce an estimated $2.8 billion over the coming decades. If this deal goes through, the same area will generate $12 billion over the same period, with most of that revenue benefiting the entire commonwealth.
Why should we care about revenue generated from a project far away from us? Because we all do better when Virginia’s economy is strong, and opportunities such as this to strengthen our entire economy in such a substantial way are rare. Put simply, the revenue generated upstate will flow downstate and provide critical resources for projects in our community. That includes infrastructure needs in Southwest Virginia and the fast-growing Fralin Biomedical Institute and Virginia Tech Carilion School of Medicine.
Moreover, with additional money pouring into Alexandria for education — $31 million in the first phase of the project — the commonwealth will have the budget flexibility and additional revenue to allocate education funding elsewhere, like Southwest schools desperately in need of it.
As Dwayne Yancey noted here recently, “if we want more state funding for those schools (and we do), then at some point we have to hope for more state revenues.” In this case, we do not have to hope for more state revenues. That revenue — worth billions of dollars — is right there for our taking in this deal.
The project at Potomac Yard will also serve as a catalyst for another critical endeavor right next door: Virginia Tech’s Innovation Campus, set to open in 2025. Students will have a campus adjacent to a world-class sports and entertainment district with places to shop, eat, watch their favorite artists and sports teams, and enjoy student life.
Virginia Tech is a vital part of our community. The vibrancy the new arena will bring to Tech’s innovation campus will only increase the excitement for students in Blacksburg to advance their education in Alexandria.
This doesn’t just benefit Virginia Tech students, either. The new partnership Virginia Tech launched with Roanoke College to allow Roanoke students to pursue a graduate degree at the innovation campus will give so many deserving students a chance to achieve their educational and career dreams in Alexandria, and maybe catch a Capitals or Wizards game while they’re there.
The concerns surrounding this deal are understandable, but we are confident Gov. Youngkin addressed those concerns before ever signing the agreement. Everyone can recognize that this is a great deal.
There is no upfront cost for Virginia taxpayers. None, whatsoever. The general fund will not be used to pay for the project, and all resources will come solely from site-specific revenue generated at the new district. The plans laid out to deal with traffic congestion and getting people to and from the arena are sound. Additionally, it will create serious revenue that will flow downstate while invigorating a campus where our local students will learn.
The Washington Capitals and Wizards may be coming to Alexandria, but the benefits of this opportunity will flow throughout Virginia and stimulate our entire economy. That includes Southwest Virginia, and we should rally the support of our community behind this monumental opportunity for our great commonwealth.