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DC leaders offer half a billion dollars to renovate Capital One Arena amid rumors of sports teams moving to Virginia

The announcement comes as a Virginia Commission approved an incentive package to lure Monumental Sports from DC to Alexandria

WASHINGTON — Days after a Virginia commission voted to support a project that could lure the Capitals and Wizards away from D.C., District leaders have unveiled legislation to support a complete renovation and modernization of the Capital One Arena. 

Monumental Sports & Entertainment, founded by Ted Leonsis, owns and operates Capital One Arena, where the Washington Capitals and Wizards both play their home games. The D.C. arena is also known to hold many concerts and performances. Earlier this week, Virginia's Major Employment and Investment (MEI) Project Approval Commission voted in favor of a proposal to outbid what the District government has offered Monumental to make stadium renovations. 

The new legislation was announced by D.C. Mayor Muriel Bowser and DC Council Chairman Phil Mendelson in a press release Tuesday night. Just hours after Virginia Gov. Glenn Youngkin announced plans for a press conference Wednesday morning regarding a "Remarkable Economic Development Project for the Commonwealth."

Sources have confirmed to WUSA9 that the area being considered is near the Virginia Tech Innovation Campus and the new Potomac Yards Metro station. The project would be a mixed-use commercial space including an arena for both the Caps and Wizards. 

RELATED: Announcement on Monumental Sports project expected Wednesday, sources say

The D.C. legislation asks that Monumental Sports enter into a lease extension until 2052 and authorizes $500 million in funding to be paid to the company over three years, beginning in 2024. The half a billion dollars would be used to renovate and modernize the Capital One Arena and solidify Monumental Sports & Entertainment as an economic anchor of the Gallery Place-Chinatown entertainment district, according to a release from the mayor's office. 

“Downtown DC is the District’s economic engine that provides revenue resources to support important programs in the city. Mr. Leonsis and Monumental Sports have been critical partners in keeping our downtown thriving, especially after the pandemic. The modernization of the Capital One Arena will be an invaluable investment for continued success and our future prosperity,” said Mayor Bowser. “This proposal represents our best and final offer and is the next step in partnering with Monumental Sports to breathe new life and vibrancy into the neighborhood and to keep the Washington Wizards and the Washington Capitals where they belong – in Washington, DC.”

City leaders have also committed to a swift and expedited review and approval process to meet current construction plans for the arena. 

 “We are committed to making the most strategic investments possible to keep the District on the best path forward and we view the revitalization of the Gallery Place-Chinatown community and the Capital One Arena as a lynchpin of that strategy,” said Chairman Phil Mendelson. “This project will fuel jobs, help local businesses, and serve as a top-tier destination for DC residents and visitors to the region.”

WATCH NEXT: Washington Capitals, Wizards could be moving to a venue in Northern Virginia

Virginia state lawmakers discussing a deal that could move the Washington Capitals and Wizards from DC's Capital One Arena to a new venue in Northern Virginia.

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