Teams in Washington, Wizards and Capitals, agree to new deal to stay in D.C. after relocation to Virginia is canceled, report says

The City of Alexandria, Virginia announced the end of negotiations to bring the NHL’s Washington Capitals and the NBA’s Washington Wizards to the city along with a proposal to create a development district with a new arena for the two teams. Unfortunately, the proposal will not move forward due to the failure of an incentive plan offered by Governor Glenn Youngkin that was blocked by lawmakers in the state’s General Assembly. The city expressed disappointment in the outcome, as they believed the Potomac Yard Entertainment District opportunity was worth considering.

After Alexandria’s announcement, the Washington Wizards and D.C. Mayor Muriel E. Bowser were reportedly finalizing a deal to keep the teams in Washington at the current home of Capital One Arena until 2050. The city plans to provide $515 million to modernize the existing arena. The decision to stay in Washington contradicted previous plans by Ted Leonsis to move both teams to a new home in Alexandria as part of a $2.2 billion mixed-use development project.

The city of Alexandria engaged in substantial community engagement over the past few months to inform negotiations and improve the proposal for the community. They trusted the process and preserved their integrity while participating in discussions, but were disappointed by the outcome between the Governor and General Assembly. Despite the setback, the city remains committed to pursuing economic opportunities that improve their quality of life and economic health.

Governor Glenn Youngkin blamed personal and political agendas for driving away the Alexandria project. The failure highlights the challenges of balancing economic development with political interests in such negotiations.