By: Andrew Loposser, Luisa Guerra-Young and Matthew Hurtt
As Republican leaders in Northern Virginia, we are deeply disappointed by Republican Governor Glenn Youngkin’s proposal to commit nearly $1.5 billion in state funds to subsidize billionaire Ted Leonsis’ relocation of the Washington Capitals and Wizards to Potomac Yard.
As residents living just a few miles from the proposed stadium site in Alexandria, our concerns about the project are also profoundly personal.
This is not the type of deal an ordinary retail establishment or restaurateur would get. Instead, it’s a deal reserved for the privileged and well-connected few. This goes against our vision for the future of the party and undermines our party’s values of fairness, transparency, and equal opportunity.
We believe in policies that benefit all Virginians, not just the elite few. We cannot support a deal that undermines these core principles.
This statement from the governor’s office is noteworthy: “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.”
This implies that the funding for the project will not come directly from existing taxes or require any immediate financial commitment from the Commonwealth.
This claim is simply false.
According to reports from The Washington Post and other sources, the proposed project carries a price tag of approximately $2.2 billion. Alexandria is expected to contribute $106 million, while Monumental would invest $819 million, with the remainder to be financed through borrowing.
The projected burden on taxpayers is estimated to reach about $1.35 billion, encompassing $1.15 billion earmarked directly for the project. J.C. Bradbury, an economics professor at Kennesaw State University and president of the North American Association of Sports Economists, reviewed the study for the Post and noted that this direct cost surpasses that of any comparable facility on record.
None of this even considers the wider transportation improvements needed for Northern Virginia to accommodate the increased traffic, residential parking enforcement for Alexandria residents, increased police presence, or waste removal. Meanwhile, residents will face more traffic, noise, crime, and pollution around our fragile Potomac waterfront.
The negative impacts of the project are wide-ranging.
Their analyses suggest that the financial success of this project is unlikely to surpass that of similar venues. Stadiums and arenas frequently fall short of delivering on their economic promises, functioning primarily as profit centers for wealthy team owners. While these owners reap substantial financial gains, the broader community sees minimal economic trickle-down effects.
Stanford University sports economist Roger Noll, who has studied the economic impacts of stadiums for decades, has found that stadiums are not the economic boon they are often promised to be. The so-called incremental tax revenue generated by stadiums is insufficient to cover the significant financial contributions made by cities or states.
Noll shows that publicly subsidized football and baseball stadiums are consistently money-losing ventures.
While a handful of arenas may break even with minimal subsidies, Noll emphasizes that no facility with a subsidy exceeding $200 million has ever achieved profitability. With a subsidy approaching $1 billion, Noll warns that the financial outcome is likely to be disastrous.
J.C. Bradbury suggests that Alexandria would economically benefit more by maintaining its current development rather than pursuing the proposed arena complex, as it would produce higher overall revenue and more tax revenue than the proposed arena complex.
Studies also show that stadium construction diverts public resources away from more productive investments like education and infrastructure, hindering long-term community development and exacerbating economic inequality.
Ultimately, the proposed stadium represents one of the largest gambles in Virginia history with taxpayer money, one that could ultimately benefit the billionaire team owner more than our communities. By committing such a significant portion of our state budget to this project, we risk burdening future generations with debt and missed opportunities.
As current and incoming chairmen of the 8th Congressional District Republican Committee and local Republican leaders, we ask Governor Youngkin to abandon this idea, and we strongly urge our Republican lawmakers to show political courage and oppose this deal, recognizing the lasting consequences it could have on our state budget for generations to come.
We demand fiscal responsibility and accountability, ensuring that taxpayer dollars are invested wisely in projects that genuinely serve the public good and contribute to the long-term prosperity of our state – not special deals for special friends.
We cannot afford to gamble with our financial future or sacrifice the needs of our communities for the interests of a privileged few. It’s time we take the party into the future, leave behind the corporations, billionaires, and their interests, and start acting like a party for hardworking Virginians who deserve better.
Signed,
Andrew Loposser, 8th District Chairman
Luisa Guerra-Young, Incoming 8th District Chairman, Founding Member of the Stop the Arena Coalition
Jonathon Hauenschild, 8th District State Central Committee Memeber
Annetta Catchings, Alexandria GOP Chairman
Matthew Hurtt, Arlington GOP Chairman
Matthew Lang, Candidate for Virginia Senate District 38
Mark Sell, 10th District State Central Committee Member
Willie Deutsch, Fmr. PWC School Board Member
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