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WASHINGTON - Mayor Muriel Bowser and D.C. Council Chairman Phil Mendelson introduced a pivotal piece of legislation Tuesday that sets the stage for a comprehensive $500 million modernization of the Capital One Arena, a project unanimously backed by the D.C. Council.

The investment aims to transform the arena into a cutting-edge urban sports and entertainment hub, reinforcing Monumental Sports and Entertainment's role as a pivotal economic contributor in the Gallery Place-Chinatown district.

Mayor Bowser emphasized the project's significance in a press release stating, "The rejuvenation of Capital One Arena is not just a renovation but a pivotal investment in our city's future success and economic prosperity."

"This development marks a decisive step in collaborating with Monumental Sports to inject new energy into the neighborhood and ensure that our beloved Washington Wizards and Capitals remain in the heart of Washington, D.C.," she added.

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The proposed legislation arrives one day after Virginia lawmakers met to discuss a deal to bring the Capitals and the Wizards to Alexandria's Potomac Yard neighborhood.

The bill seeks to authorize a lease extension and allocates $500 million of the total $800 million renovation cost over three years, starting in 2024. City officials are committed to a rapid review and approval process to align with the planned construction timeline.

Since 1997, the Capital One Arena has been the centerpiece of the Gallery Place-Chinatown area, hosting over 80 sporting events annually.

WASHINGTON, DC - SEPTEMBER 16: Mayor Muriel Bowser, right, holds up a Wizards jersey given to her by Ted Leonsis, left, as they announce plans to build a sports arena at St. Elizabeth's East in Ward 8, on September, 16, 2015 in Washington, DC. (Photo by Bill O'Leary/The Washington Post via Getty Images)

WASHINGTON, DC - SEPTEMBER 16: Mayor Muriel Bowser, right, and Ted Leonsis announce plans to build a sports arena at St. Elizabeth's East in Ward 8, on September, 16, 2015 in Washington, DC. (Photo by Bill O'Leary/The Washington Post via Getty Images)

WASHINGTON, DC - SEPTEMBER 12: Mayor Muriel Bowser, Events DC, the Districts convention and sports authority, and Monumental Sports &amp; Entertainment celebrate the opening of the Entertainment and Sports Arena with city dignitaries and the Ward 8 community in Washington, DC, September 22, 2018. The event signifies the completion of the 4,200-seat arena at Entertainment and Sports Arena. The venue will act as home court for DCs WNBA team, the Washington Mystics and new G-League team, the Capital City Go-Go as well as the official practice facility for the NBA Washington Wizards and additional entertainment, sports and esports programming. The 120,000 square-foot facility is projected to produce $90 million in new tax revenue over 20 years and to attract more than 380,000 annual visitors per year. (Astrid Riecken For The Washington Post via Getty Images)

"Investing in the Capital One Arena and the surrounding community is crucial for the District's strategic growth. It promises to create job opportunities, boost local businesses, and establish the area as a premier destination for residents and tourists alike, said Chairman Mendelson, highlighting the strategic importance of the project.

The partnership with Monumental Sports envisions transforming Gallery Place-Chinatown into a top-tier destination.

The ongoing development of the Downtown D.C. Action Plan is set to further leverage the unique features and prime location of the area, in hopes of catalyzing the city's economic resurgence.

Check out the complete details of the legislation below:

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