WASHINGTON, DC (Wednesday, March 27, 2024) – Today, Monumental Sports & Entertainment founder, chairman, principal partner and CEO Ted Leonsis, Washington, DC Mayor Muriel Bowser, and DC Council Chairman Phil Mendel Son will transform and modernize Capital One Arena and expand Monumental's business and hospitality operations next door to Gallery Place, a revitalized entertainment venue in downtown DC.
“I look at the outcome, not the process, and we arrived at the right outcome,” Ted Leonsis said. “I know this has been a difficult process, but I want people to understand how much I love Washington, D.C., and how much I will always love Washington, D.C.”. Mayor Bowser and his team listened to us, worked with us, and provided us with the tools to meet our needs to grow our business here downtown. I have time to talk about my experience in Virginia, but it's not today. Today we're talking about our time in Washington, D.C., and what the Mayor and City Council have been doing in downtown D.C. We got to this place because we continued to have honest conversations with the Mayor and his staff. , because we both chose the high road, not knowing how things would end. This is more than an investment from the City, it is a true partnership as evidenced by all these investments that the City has made to deliver an exceptional game day experience for our fans. ”
The district has committed to financing a previously announced $500 million loan to renovate Capital One Arena, home of the NHL's Washington Capitals and NBA's Washington Wizards. In addition, DC will provide an additional $15 million to improve the alley connecting Gallery Place and Capital One Arena. Legislation enacted by the D.C. Council allows for this financing through appropriations for capital construction projects funded by general obligation bonds.
Since December 2023, D.C. officials have taken concrete actions to support Monumental Sports and the downtown community. In January 2024, the Mayor announced the creation of the Gallery Place/Chinatown Task Force to articulate a clear vision for and around Capital One Arena and ensure the long-term success of Downtown DC. announced its Downtown Action Plan and Downtown Public Realm Plan. commercial core. The Mayor also opened the first Safe Commercial Corridor Hub in the Chinatown District. The hub is staffed with outreach teams from multiple public safety and human services agencies who can respond to community challenges in real time. And earlier this month, the Council passed the Secure DC Omnibus Act, which includes multi-pronged strategies and tactics to fight crime. It includes provisions allowing drug-free enforcement zones, which are already in place in the Chinatown area.
“We're bringing a state-of-the-art urban arena to downtown Washington, D.C., which is great for D.C., great for our team, and great for our fans,” said Mayor Bowser. “We made a great offer and held on to that offer because we knew all along that this was a win-win for our city and our team. This is a catalytic investment in Downtown DC. We are excited to have Monumental as a partner in DC's comeback and look forward to working together to help DC win.”
Sports teams provide incredible benefits to their surrounding communities and have an extraordinary economic impact. Strong public-private partnerships are essential to sustaining both. According to the DC Business Improvement District's implementation, activities at Capital One Arena generated $54 million in DC tax revenue in 2023. As of the end of 2023, Capital One Arena has generated $800 million in cumulative tax revenue for D.C. since the arena opened. The average arena visitor spends approximately $267 inside and outside the arena, further supporting nearby small businesses. Across our region, public-private partnerships have become the norm for professional sports teams, with MLB's Washington Nationals and MLS' D.C. United receiving public funding to build Nationals Park and Audi Field, respectively. There is. Public funds were invested in the construction of Audi Field. The Maryland Stadium Authority recently awarded initial public funding for Oriole Park at Camden Yards, home of MLB's Baltimore Orioles, and M&T Bank Stadium, home of the NFL's Baltimore Ravens. announced that it will receive $600 million each in addition to renovations and upgrades.
In the 14 years Leonsis has owned the arena, he has invested more than $200 million in renovations and upgrades, including:
- $120 million for items including roof, all-new seating, new sound system, center-hanging scoreboard, LED lights/bowl lighting, concourse and concessions, dehumidifiers, escalators, fire alarms, ice plant, technology improvements, and more. or more capital expenditures.
- $18 million for District E Powered by Ticketmaster and other renovations
- $60 million investment in new broadcast and production studio for Monumental Sports Network
- $15 million to enhance staff space for hundreds of Monumental Sports employees
“Monumental Sports has been a great partner in the District since acquiring the arenas nearly 14 years ago, and we are very pleased to be able to maintain them as a cornerstone of our downtown,” said D.C. Council President. said Phil Mendelson. “As we have said all along, our government can act quickly and deliver on our commitments. We look forward to the revitalization of Gallery Place/Chinatown through our expanded relationship with Monumental. I am.”
Monumental Sports has the opportunity to expand into additional space within Gallery Place for both operational and public use, and in combination with the existing District E, Capital One Arena's footprint will be able to effectively expand their fan experience, enhance the fan experience, and provide much-needed backing. home improvement. This opportunity will allow Monumental Sports to meet its need for additional space to support its rapid growth.
“Keeping the Wizards and Capitals in our nation's capital has always been the right thing to do for the vitality of our downtown. Our residents will benefit from the entertainment and sports programming this venue brings, as well as the jobs and economic benefits this venue provides for decades to come. We want to expand access to opportunity,” said Councilwoman Kenya McDuffie, chair of the Business and Economic Development Committee. “I look forward to working with the team and community to build the right future for the arena and DC.”
Additional terms and conditions:
- $515 million in cash
- This will include developing the best sight lines for fans, premium hospitality options, better digital infrastructure, and other key improvements to modernize fan areas and improve the player space and fan experience inside and outside. Helpful.
- Agreement to add approximately 200,000 square feet of newly programmed space throughout Capital One Arena and in the adjacent Gallery Place building
- Improved safety
- 17 full-time officials will be on duty from two hours before game time to two hours after game time.
- Support athletes
- New wizard practice facility with options including top floor of Gallery Place
- The Mystics and Go-Go's will continue to play in the arena, but can now specify to play four games per season and all playoff games at Capital One Arena if they wish.
- Improving business operations at scale
- Take control of entertainment & sports arena management and maximize player space and practice courts
- Enhancement of transportation-related benefits to support employees and fans
- Traffic coordination to and from the event
- Dedicated rideshare zone and drop-off during events
- We are considering moving the H Street bus stop (our customers and staff are very concerned about walking down this street when arriving at COA by subway)
- Consideration of 200 parking spaces for arena staff
- Improving logistics around Capital One Arena for more efficient operations
- As an example, the street across from our loading dock, 6th Avenue.
- Truck parking lot for events
- F Street can be closed two hours before the game.
- Improved management around the arena
- Creation of entertainment district eliminates restrictions on vending, loitering and noise
- Maintenance and landscaping around downtown
- Better coordination of city processes
- Expedited permission for renovations and alterations
- Assets that generate more income
- Extension of public rights of way with corresponding air rights
- Additional signage areas around Gallery Place
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