Virginia Senate Democrats Deal Setback to Legislation for Relocating Washington Capitals and Wizards
ICARO Media Group
In a blow to the proposed relocation of the NBA's Washington Wizards and NHL's Washington Capitals to northern Virginia, top Democrats in the Virginia Senate have refused to docket the bill for a hearing. They expressed serious reservations about the financing of the deal negotiated by Republican Governor Glenn Youngkin.
Senator L. Louise Lucas, who holds influence as chair of the Senate Finance & Appropriations Committee, made her stance clear over the weekend on social media, stating that the legislation was "not ready for prime time" and would not receive a hearing in her committee. This decision effectively killed the Senate version of the bill due to a procedural deadline.
While the Senate Democrats have dealt a blow to the relocation plans, another bill is making progress in the House of Delegates, which is also controlled by Democrats.
Senator Lucas, in a joint press conference with Senate Majority Leader Scott Surovell, criticized Governor Youngkin for a series of mistakes in pushing the proposal forward without consulting legislators. They questioned why lawmakers were not involved in the conversation earlier and why it was put up for a vote before a legislative economic development commission that was nearing the end of their term.
Additionally, concerns were raised about whether the governor was willing to consider Senate Democrats' priorities, including legislation on recreational cannabis sales, minimum wage increases, and toll relief for the Hampton Roads region.
Senator Lucas expressed her objection to the project financing as it currently stands, particularly due to the use of moral obligation bonds backed by the state and Alexandria. She emphasized that taxpayers could be held responsible if the project revenues fall short. Senate Democrats had asked for alternative financing options but were told that this aspect of the bill was non-negotiable.
Governor Youngkin's communications director, Rob Damschen, expressed confidence in the Assembly's ability to come together for the project, as he believes it is beneficial for the whole state. However, Senate Republicans criticized Senator Lucas's refusal to put the bill up for a committee vote, regarding it as a "pocket veto" of the governor's priority.
The proposed new site in Alexandria is located just a few miles from the teams' current home in Washington. The legislation currently pending before the Assembly aims to establish a sports and entertainment authority that would issue bonds to finance the project. Repayment for the bonds would come from various sources, including revenues from the arena, ticket taxes, parking fees, concession taxes, income taxes from athletes performing at the arena, and naming rights from the district.
Monumental, the company involved in the relocation plans, stated that they are engaged in "healthy discussions" with General Assembly leaders and Alexandria City Council members, who also need to approve the deal. The company was encouraged by the recent 17-3 vote in favor of the bill in a House committee.
Virginia's elected officials have long pursued the goal of attracting a major professional team to the state. This includes a previous attempt to secure a Major League Baseball team two decades ago, which faced similar concerns regarding the use of moral obligation bonds.
As the relocation plans face setbacks in the Virginia Senate, the fate of the bill now rests with the House of Delegates, where it continues to progress.