Gov. Youngkin calls failed Alexandria arena deal one of his most frustrating moments
Governor says Democratic-led Senate 'made a terrible decision' blocking $2 billion Potomac Yard entertainment district
Virginia Gov. Glenn Youngkin says the collapse of a proposed sports arena deal in Alexandria ranks among his most frustrating moments during his four years in office.
Youngkin shared his reflections in an interview with WRIC reporter Tyler Englander, who asked about anything the governor wished had gone differently, WTOP reported. His term ends Saturday when Democratic Governor-elect Abigail Spanberger is sworn in as Virginia’s next governor.
“One of the more frustrating moments was not being able to deliver the sports stadium deal in Northern Virginia,” Youngkin told WRIC. “I’ve been told by many it’s the best sports stadium deal they’ve ever seen and it was compelling. 30,000 jobs, $12 billion of economic impact.”
The governor placed blame squarely on state legislators: “I think that General Assembly, in particular the Democrat-led Senate, made a terrible decision to block that.”
The proposed deal
The $2 billion Potomac Yard Entertainment District would have relocated the Washington Wizards and Washington Capitals from D.C. to Alexandria. The proposal included a new arena for both teams, Monumental Sports & Entertainment’s global headquarters, a performing arts venue and future phases of residential buildings, office space and hotels.
The financial structure relied on bonds issued by a Virginia Sports and Entertainment Authority, with 40% of funding from Monumental Sports cash and lease payments, 53% from tax revenues generated by the development and 5% from the city.
Why it collapsed
Englander, who covered the 2023 saga, spoke with WTOP about the conflict and noted it defied simple partisan framing.
“That saga will kind of always be remembered not as Republicans versus Democrats because there were Democrats who supported the arena,” Englander told WTOP. “But I think it’s interesting that it was really Governor Glenn Youngkin versus Senator Louise Lucas, and Senator Lucas decided that the tax incentives to get the Washington Wizards and Capitals and Ted Leonsis to move to Alexandria was just not worth it.”
Lucas, who led opposition in the Democratic-controlled Senate, objected to the scale of public tax incentives benefiting a private sports venture.
Alexandria’s response
The city of Alexandria ended negotiations in March 2024, expressing disappointment with the breakdown between state leaders.
“We negotiated a framework for this opportunity in good faith and participated in the process in Richmond in a way that preserved our integrity,” the city said in a statement. “We trusted this process and are disappointed in what occurred between the Governor and General Assembly.”
City officials emphasized they had sought guarantees on transportation improvements, affordable housing, protection of Alexandria’s AAA bond rating, financial risk protections for residents and neighborhood safeguards — conditions they said were not adequately addressed.
“We are disappointed negotiations did not result in a proposal that protected our financial interests and respected these community values,” the city’s statement continued.
Alexandria officials noted that none of the city’s existing tax revenues would have supported the project under their negotiated framework.
A lingering what-if
Nearly two years after negotiations collapsed, the failed deal clearly remains on Youngkin’s mind.
“Even all these years later, it’s something that Governor Glenn Youngkin is still thinking about,” Englander told WTOP.