Bacon's Rebellion

Democracy Thrives in Sunlight

Deja Vu, All Over Again

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by

Dick Hall-Sizemore
in ,

by Dick Hall-Sizemore

Virginia is trying again to land a sports facility for a national professional sports team, The Washington Post reports. This time it is an arena for the Wizards of the National Basketball Association and the Capitals of the National Hockey League. Both teams have the same owner and are currently located in Washington, D.C.

The facility would be located in Potomac Yards in Alexandria. (If that name sounds familiar, that is where then-Gov. L. Douglas Wilder tried to lure the Washington Redskins football team 30 years ago.) According to the Post, the arena would anchor a “massive mixed-use development.” A stadium authority would own the facility and lease it to the company that owns the sports teams. There are no public details on potential costs yet. The owner of the Wizards and the Capitals would be expected to put up “hundreds of millions of dollars of its own money,” with the remainder being provided by the authority. The authority would sell bonds to raise the cash and use revenue from ticket sales, concessions, and parking to repay the bonds (theoretically). 

Although the General Assembly will need to approve this endeavor, a group of Virginia lawmakers has already given the green light to the project. The Major Employment and Investment Project Approval Commission, which, by law, must review major economic development proposals, met Monday to consider the project. Although proceedings of the commission are exempt from FOIA provisions, sources told the Post that the commission approved the project. The commission is made up of legislators as follows:

House of Delegates

  • Barry Knight (R-Virginia Beach)
  • Daniel Marshall (R-Pittsylvania County)
  • Robert Bloxom (R-Accomack County)
  • Lee Ware (R-Powhatan County)
  • Luke Torian (D-Prince William County)
  • Mark Sickles (D-Fairfax County)

Senate

  • George Barker (D-Fairfax County)
  • Thomas Norment (R-James City County)
  • Frank Ruff (R-Mecklenburg County)
  • Richard Saslaw (D-Fairfax County)
  • Mamie Locke (D-Hampton)

(It should be noted that three of the Senators — Barker, Norment, and Saslaw — are lame ducks.)

According to the Post’s sources, the vote was unanimous.

My Soapbox

Public funds should not be used to subsidize privately-owned sports teams and private development. At the very least, not a dollar of tax money should be dedicated to this project, nor should the Commonwealth of Virginia be liable for any potential debt payments. Are we really so embarrassed that Virginia is the largest state not to host a major professional sports team that we are willing to pursue bad and mediocre teams? (The Wizards’ most recent five-season record is 161-229. The Capitals at least have a winning record over five years, 204-124, and they finished first in their division two of those seasons. Last year, they finished sixth in their division and 25th in the entire NHL.)

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46 responses to “Deja Vu, All Over Again”

  1. Nancy Naive Avatar
    Nancy Naive

    Churning the account.

  2. LarrytheG Avatar
    LarrytheG

    So … if this facility can also be used for other events… and it will be
    self-supporting without need for subsidies, going forward.

    And it will generate spin-off economic activity, would it still be
    not good?

    1. Teddy007 Avatar
      Teddy007

      TAx free bonds are a subsidy. The infrastructure build by the government around the facility is a subsidy.

      1. LarrytheG Avatar
        LarrytheG

        The discussions centered around what kind of other development would be possible and what kind of tax revenues it would generate plus spin-off.

        For Kalahari , they’re creating a special tax district to pay for the transportation infrastructure.

        1. Teddy007 Avatar
          Teddy007

          Arena and sporting venues are build to build the egos of politicians and so that real estate grifters can rip people off. When the discussion becomes about the real estate benefits, the taxpayer knows that they are going to be ripped off.

          1. LarrytheG Avatar
            LarrytheG

            I dunno, we have some hard-core anti-govt conservatives on the BOS. They’re
            been rather vocal about govt spending and subsidies. The case got made good
            enough for them apparently.

          2. Teddy007 Avatar
            Teddy007

            When it comes to ego versus political consistency, the egotist always win.

      2. DJRippert Avatar
        DJRippert

        Yes, definitely. Leonsis is looking for subsidies and will try to trade off DC vs Virginia.

        1. Teddy007 Avatar
          Teddy007

          Leonsis just wants a better deal from DC. He is not going to move since he owns a piece of the arena.

    2. Nancy Naive Avatar
      Nancy Naive

      If it would be that profitable then it could build itself; financed by investors. If the State has occasional need for such facilities then they can rent it just like anyone else.

      1. LarrytheG Avatar
        LarrytheG

        Can they be profitable if taxes are reduced in exchange for spin-off tax revenues ?

      2. DJRippert Avatar
        DJRippert

        From the state that owns the retail liquor stores?

        Virginia is far from being a paragon of free enterprise thinking.

        1. Nancy Naive Avatar
          Nancy Naive

          Wait! Is that not a part of the Virginia Way?

        2. LarrytheG Avatar
          LarrytheG

          Well, they are cleaning house, so to speak at the Va ABC ….

          could be an interesting story itself if Dick or Haner is so inclined.

  3. James Kiser Avatar
    James Kiser

    Amazing how Billionaires all figure out how to stick the little guy with bill. Of course the pols love the box seats and hobnobbing with the rich and famous.

    1. Nancy Naive Avatar
      Nancy Naive

      And yet, there are those who will vote to give one even greater access and control, even one proven to have committed fraudulent business activities.

      1. DJRippert Avatar
        DJRippert

        You’re right! Biden should not get greater access and control.

        1. Nancy Naive Avatar
          Nancy Naive

          Hunter isn’t on the ticket. But Donald is.

  4. Teddy007 Avatar
    Teddy007

    There are no economic arguments for a stadium. Actually, Capital One arena has done better than most. Stadiums and Arena are just about the ego of politicians and the greed of the team owners.

  5. DJRippert Avatar
    DJRippert

    I have no idea why this is statewide issue. The benefits should accrue to Northern Virginia. The costs should be absorbed by Northern Virginia. The risks should be borne by Northern Virginia. The state should have nothing to do with this.

    Why is some politician from Accomack County even involved in this decision?

    These teams will not become the Virginia Wizards or the Richmond Capitals.

    Dick’s categorization of these two teams as mediocre is debatable, at best. They are not mediocre. The Wizards suck out loud and the Capitals are quite good. In fact, it was just 2018 when the Caps won the Stanley Cup.

    The rest of Virginia should be isolated from this decision and NoVa should take full responsibility.

    Let’s be honest – building world class cities is not something Virginia where Virginia has shown much success. NoVa and Tidewater are patchworks of various jurisdiction with no real core and Richmond has underwhelmed as a souther city for the past century.

    Maybe it’s time to try something new.

    1. LarrytheG Avatar
      LarrytheG

      The State does “economic development” especially for rural Va… but not restricted to it.

      The question is not whether the state does it or not or should but to what degree , no?

      1. DJRippert Avatar
        DJRippert

        As far as I can tell, state level economic development efforts are largely failures. Economic development, by its very nature, is (at best) a regional problem.

        Nobody is going to commute from Accomack County to a job in Potomac Yards.

        1. LarrytheG Avatar
          LarrytheG

          to the extent that subsidies can’t help a failed enterprise be profitable, yes… and there are
          more than a few like that and Youngkin has done his share of shilling for ED.

  6. DJRippert Avatar
    DJRippert

    DC has been substantially improved by the construction of the Verizon Center, Nationals Park, and Audi Field. Potomac Yards doesn’t have the same level of decay as those areas of DC once had but it isn’t exactly a modern urban neighborhood either.

    Given Amazon’s delays, maybe that location needs to be rethought. Potomac Yards is, I believe, right next to National Landing.

    Or, given Amazon’s delays, maybe alternatives should be considered.

  7. Nancy Naive Avatar
    Nancy Naive

    Speaking of money, inflation isn’t shrinking your dollar.

    It’s shrinking the cash register display. Ten years ago, the total was displayed with nice 14pt fonts on a single line display that faced the customer. Today, it’s barely 8pt. Nice 6×8 LCD screens with itty bitty numbers. Bring your readers.

  8. walter smith Avatar
    walter smith

    No. No. No. No.
    Please stop.
    I hate the buying jobs Olympics, which never materialize as promised, and then the claim “My administration “created” XXX jobs.”
    Hogwash. You bought a bunch of unenforceable promises and gave away millions to do it.
    How about lowering taxes and regulations and having the best schools and the best business environment? You know – good laws, neutrally and equally applied.
    A crazy concept…
    (And please note – I have said something in agreement with DHS. He occasionally is not wrong, unlike the Leftie commenters here)

  9. Stephen Haner Avatar
    Stephen Haner

    Ah, Potomac Yards again. Who says history doesn’t repeat itself but merely rhymes. Having lobbied for a similar bill (NHL in Hampton Roads) I will tread lightly, but I basically agree this is not how local or state dollars should be spent. I’m willing to await the details for a final opinion. If the facility does have enough other uses, and gets used, that helps.

    Still have a Hampton Roads Rhino sticker that I keep since it has taken on other meanings. 😉

    1. Nancy Naive Avatar
      Nancy Naive

      Harbor Center Hampton. Made money for Armada-Hoffler, lost tax dollars, built the second of two waterfront parking garages, and eventually got snapped up for a song by Hampton U. under the leadership of Harvey.

      For completion, and the history of the first waterfront garage substitute Eason Bros for Armada-Hoffler and we’re still waiting for HU to bailout the taxpayers.

    2. DJRippert Avatar
      DJRippert

      Local dollars should be decided by the localities who provide them, not the nanny-state in Richmond.

      1. LarrytheG Avatar
        LarrytheG

        Well, I have to tell you that in the Fburg area , on a regular basis, we hear about businesses starting up with a Va “grant”.

  10. James Wyatt Whitehead Avatar
    James Wyatt Whitehead

    Why not? Bring the Wiz! But make them change the name to Virginia Squires. Ahhh those Squires. Back in the early 70s they were a fun brand of basketball. They had great stars too such Julius Erving, Charlie Scott, and George Gervin. The Squires played home games in Nawfolk, Hampton, Richmond, and Roanoke.
    https://www.youtube.com/watch?v=8lUKfgPr8Do

    1. WayneS Avatar
      WayneS

      The Virginia Squires. I saw them play one time when I was about 10 years old. I liked the red, white and blue basketballs the ABA used.

      1. James Wyatt Whitehead Avatar
        James Wyatt Whitehead

        They should bring that back! Loved those spinning balls. I have watched some of those old Squire games. They were good but not a deep team. The owner could not make a buck or pay his bills despite strong ticket sales. The Squires had to sell 4 hall of famers to other teams just to keep the doors open. Rick Barry, The Doctor, The Iceman, and Charlie Scott. Talk about a dream team.

        1. walter smith Avatar
          walter smith

          I went to one game as a kid. Dr J was the pre-game and half-time show. His Fro would sway back and forth as he made his move to the hoop. Worth it just for him

  11. LarrytheG Avatar
    LarrytheG

    Fredericksburg collaborated/supported the development of a Convention Center and a minor league Baseball stadium a few years back.

    I think if you asked them if they made a mistake, they’d strongly disagree.

    Spotsylvania has done similar with State level soccer fields, a racetrack and a water-based amusement park.

    The state actually put some money in to some of those projects.

    I don’t doubt that done wrong (or gone wrong), they can be money pits and bad investments.

    But when done “right”, I think the perceived “spin off” activity tips the balance.

    The Convention Center and Ballpark are the venues for a wide variety of local events from boat shows, gun shows to funerals and high school graduations… The Convention Center resembles the commercial exhibit building at the State fair many weekends.. They do charge admission.

    Fredericksburg and Spotsy agreed to reduce property/other taxes on some developments if they achieved a performance threshold.

    Someone smarter than I might bring some numbers to this thread showing otherwise…

  12. WayneS Avatar
    WayneS

    Potomac Yard was once an EPA superfund site. I visited it then. It looks a lot better now.

  13. WayneS Avatar
    WayneS

    I do not support spending tax dollars on sports teams, and I never will.

    That is not why I am posting this comment, though. I am commenting because I think Mr. Hall-Sizemore’s assessment of the Washington Capitals was quite unfair. The Caps are far better than mediocre.

    Over the last ten years they are third in the NHL in games won, and have made it to the playoffs eight of the the last ten years, including winning one Stanley Cup championship.

    And, despite a few dreadful seasons immediately following their formation in 1974, the Capitals have made the NHL playoffs a total of 32 times in their 49 seasons (over 60% of the time).

    From a financial standpoint, they are presently the 9th most valuable NHL team (out of 32).

    They may not yet have the storied histories of the “Original Six” NHL teams, but a lot of hockey towns would consider themselves extremely lucky to have a home team as “mediocre” as the Capitals.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      I agree that I did the Capitals an injustice. I was never a hockey fan and I am less and less a sports fan these days. I was just looking at their record over the last five seasons. With so many teams in all sports now, making the playoffs is not that big a deal.

      1. Stephen Haner Avatar
        Stephen Haner

        My son in San Antonio (now Austin) has turned into a major NBA fan, attending Spurs games in person. Those franchises are financial bonanzas. More details are emerging this morning and I remain on the fence. This sounds interesting. Sounds like the right players are on board, so to speak. I might become a yes.

        1. LarrytheG Avatar
          LarrytheG

          ” Those franchises are financial bonanzas. ”

          wow! Do you mean for the recipients the govt subsidies?

        2. WayneS Avatar
          WayneS

          NBA = 👎

          NHL = 👍

          😉

        3. WayneS Avatar
          WayneS

          Yes. It looks like Monumental Sports is prepared to make a huge commitment to Alexandria. They would move their corporate headquarters to Virginia as part of the project. And they plan to build a lot more than just a sports arena.

          Monumental Sports said it would partner with the state to create a new entertainment district campus that would include a “new Capitals and Wizards arena for the region and Monumental Sports’ new global business headquarters.”

          https://wtop.com/local/2023/12/this-is-monumental-capitals-wizards-owners-partner-up-with-virginia-for-proposed-arena-entertainment-district-in-alexandria/

          I’m still opposed to federal or state tax dollars being spent on it. But Alexandria can throw all the local tax money they want at the deal as far as I am concerned.

  14. how_it_works Avatar
    how_it_works

    ” Are we really so embarrassed that Virginia is the largest state not to host a major professional sports team that we are willing to pursue bad and mediocre teams?”

    Should be more embarrassed that Virginia never had a metro area important enough to be worthy of an area code with a “1” as the middle digit.

  15. WayneS Avatar
    WayneS

    Here is a link to the “rah rah” PR website for the project:

    https://alexandriaecon.org/why-alexandria/featured-projects/monumentalalx/

  16. energyNOW_Fan Avatar
    energyNOW_Fan

    There was a big press conference 9AM today with Gov Y and Ted Leonsis, some parts covered live on WTOP radio. Sort of rambling sales pitch to GA. But I guess it would feel good after being out-maneuvered by a Maryland political hack who stole the FBI HQ project from Virginia. DC is getting somewhat dangerous these days with an armed teen car jacking epidemic, but hopefully that is short term issue.

  17. Haig48 Avatar
    Haig48

    I trust the governor to structure a deal that does not subordinate Virginia’s interests to the Transaction. He is the sharpest knife in the drawer.

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