Wizards, Capitals Virginia deal could be 'biggest taxpayer stadium subsidy' ever
Wizards, Capitals Virginia deal could be 'biggest taxpayer stadium subsidy' ever
A plan to move the Washington Wizards and the Capitals out of Washington is facing scrutiny from Virginia taxpayers, skeptical about just how much of their money will go into the project. FOX 5's Derick Waller has the story.
WASHINGTON - A plan to move the Washington Wizards and the Capitals out of Washington is facing scrutiny from Virginia taxpayers, skeptical about just how much of their money will go into the project.
The Alexandria Economic Development Partnership estimates a new sports and entertainment complex in Potomac Yard will create 30,000 new jobs, but it will also come with a hefty $1.35 billion subsidy from Virginia taxpayers, according to an analysis by The Washington Post.
"If this really does create some big economic benefit, it would be a huge exception to the general rule," George Mason University Law Professor Ilya Somin told FOX 5 on Tuesday.
Potomac Yard arena plan would create 30,000 jobs, according to impact report
An impact analysis for the planned development of Potomac Yard found that the creation of an entertainment district would create nearly 30,000 permanent jobs and generate 2.5 times the economic output.
Somin points to other taxpayer-subsidized sports arenas around the country that failed to deliver the promised economic benefit.
One example? When the Rams bolted to Los Angeles in 2016, St. Louis was still paying off the old stadium.
"Decades of studies by economists and other experts show that when government subsidizes sports stadiums, it almost never pays off for the community or for taxpayers," Somin said. "And this, if it’s carried out the way that the initial indication suggests, might be the biggest taxpayer stadium subsidy in the entire history of the United States."
Somin also writes the real estate being used could instead help ease the region’s housing crisis.
Still, local business owners are thrilled. Jimmy Madden is co-owner of the Crystal City Sports Pub.
"Sounds good for anybody in the business community for sure," Madden said. "Of course, we’re part of that, and we would benefit very much from all of that."
Caps, Wizards departure may spell trouble for DC's Downtown revitalization efforts
What will happen to Downtown D.C. if the Caps and Wizards move to Virginia? That’s a question on many minds and a new report claims it could mean the loss of thousands of jobs and millions of dollars.
Inside the bar Tuesday night, opinions among D.C. sports fans, who also happen to pay taxes, were mixed.
"Ridiculous," Caroline Quinn said. "We already have one. Why are we doing the most?"
"Well, I don’t make that much money, so it’s not much going to be coming from me," Ben Criswell told FOX 5. "I don’t know if they want to do it. It’s fine.
"I mean, come on. We don’t need to revoke the stadium from D.C. and plant it 5 miles away," Justin Snow said. "D.C. sports belong in D.C."
D.C. Mayor Muriel Bowser would prefer to keep it that way, offering instead to renovate the existing arena. The plan also has to gain approval from the City of Alexandria and the Virginia General Assembly.