Ted Leonsis has talked to Gov. Wes Moore about arena plans (Potomac: sales, lease)

[NJ2MDdude]

https://www.thebaltimorebanner.com/s...DXYAF5BOL467A/

What can I say...great minds (Leonsis and ME) think alike.

[North Beach Person]

So a bidding war between three governments (Virginia, Maryland and DC) for three different teams. Maybe a fourth goes into the mix depending on the Lerners.

And Maryland has to raise a couple billion in taxes just for this year to balance the budget.

Good times.

[NJ2MDdude]

VA is out and DC appears to be a no go. The only play left for Leonsis is MD.

Prior to 1997, both the Wizards and Capitals called Largo their home. It would only be right for them to return to PG County, if Leonsis wants out of DC and VA is no longer a viable alternative.

As I mentioned in another thread, National Harbor would be the perfect site to build an arena. It was designed to be the crown jewel of PG County. Yet it seems to fall short of the vision of the original developer who called his development Port America.

I'm sure the long range plans of PG County is to connect Metro rail to NH via DC and possibly Alexandria. An arena at NH would have to push such a project forward and spur further economic development in NH and the surrounding area.

Leonsis wants a sports entertainment center, and NH is kind of an entertainment/hospitality complex. So, the goals of the parties are aligned.

[the resident09]

Originally Posted by NJ2MDdude

VA is out and DC appears to be a no go. The only play left for Leonsis is MD.

Prior to 1997, both the Wizards and Capitals called Largo their home. It would only be right for them to return to PG County, if Leonsis wants out of DC and VA is no longer a viable alternative.

As I mentioned in another thread, National Harbor would be the perfect site to build an arena. It was designed to be the crown jewel of PG County. Yet it seems to fall short of the vision of the original developer who called his development Port America.

I'm sure the long range plans of PG County is to connect Metro rail to NH via DC and possibly Alexandria. An arena at NH would have to push such a project forward and spur further economic development in NH and the surrounding area.

Leonsis wants a sports entertainment center, and NH is kind of an entertainment/hospitality complex. So, the goals of the parties are aligned.

Va is not out entirely, and it's almost 0 chance they move back into MD especially PG county without a Metro stop in place. The proposed option for Metro at NH would not come to fruition until about 2045 maybe 2050.

They should just relocate to the RFK site next to the new Commanders stadium and build a mega development surrounding the two stadiums. I saw something where the Philadelphia Phillies are seeking to do something similar up there, and to those who think it can't or shouldn't be done in a "urban" city having stadiums of this size, go visit Barcelona and see how their Futbol and Basketball arenas are setup.

[skeddy]

Suck Maryland into a bidding war. lol

[NJ2MDdude]

Originally Posted by the resident09

Va is not out entirely, and it's almost 0 chance they move back into MD especially PG county without a Metro stop in place. The proposed option for Metro at NH would not come to fruition until about 2045 maybe 2050.

They should just relocate to the RFK site next to the new Commanders stadium and build a mega development surrounding the two stadiums. I saw something where the Philadelphia Phillies are seeking to do something similar up there, and to those who think it can't or shouldn't be done in a "urban" city having stadiums of this size, go visit Barcelona and see how their Futbol and Basketball arenas are setup.

If JKC failed to get his stadium built in Potomac Yards, then I don’t think TL will succeed. The NOVA NIMBYs are organized, vocal and don’t want fan boys coming in to their community, disrupting their lifestyles and changing the dynamics of their community.

DC doesn’t have the land to give TL the sports entertainment complex he wants. Yeah, I know the RFK site is available, but I don’t think TL wants to relocate his clubs to that location. Otherwise, that site would’ve been in play and TL wouldn’t have contacted MD Gov. Moore.

PGC, otoh, has the land and should be open for business, especially a high-profile, profitable business that has the potential to be a game changer for PGC, in contrast to the usual overhyped and under-delivered development projects that is commonplace in PGC.

In any case, it’ll take years before a new arena is built anywhere in the DMV. And TL can’t legally vacate Capital One until 2027, when he can pay off the debt service on $35M in outstanding arena bonds. Assuming 2027 is the bond's first callable year, TL has greater flexibility to pay off the debt service at any time after 2027 while remaining at Capital One. That means PG/MD will also have more time to complete the extension of Metro rail from the Anacostia Green Line Station to NH, which should've taken precedence over the Purple Line.

[adelphi_sky]

Originally Posted by NJ2MDdude

If JKC failed to get his stadium built in Potomac Yards, then I don’t think TL will succeed. The NOVA NIMBYs are organized, vocal and don’t want fan boys coming in to their community, disrupting their lifestyles and changing the dynamics of their community.

DC doesn’t have the land to give TL the sports entertainment complex he wants. Yeah, I know the RFK site is available, but I don’t think TL wants to relocate his clubs to that location. Otherwise, that site would’ve been in play and TL wouldn’t have contacted MD Gov. Moore.

PGC, otoh, has the land and should be open for business, especially a high-profile, profitable business that has the potential to be a game changer for PGC, in contrast to the usual overhyped and under-delivered development projects that is commonplace in PGC.

In any case, it’ll take years before a new arena is built anywhere in the DMV. And TL can’t legally vacate Capital One until 2027, when he can pay off the debt service on $35M in outstanding arena bonds. Assuming 2027 is the bond's first callable year, TL has greater flexibility to pay off the debt service at any time after 2027 while remaining at Capital One. That means PG/MD will also have more time to complete the extension of Metro rail from the Anacostia Green Line Station to NH, which should've taken precedence over the Purple Line.

DC says, "Hold my beer."

DC attorney general says Capitals and Wizards can’t leave DC until 2047. Monumental says they can

[NJ2MDdude]

Originally Posted by adelphi_sky

DC says, "Hold my beer."

DC attorney general says Capitals and Wizards can’t leave DC until 2047. Monumental says they can

Sorry DC; you're bar tab is closed.

It’s a 40-year bond, issued sometime in 2007, with a 2027 call date and a 2047 maturity date. The amended ground lease allows for TL to vacate the facility upon written notification no later than 120 days after paying off the bonds. Since DC dealt with Abe Pollin (who self-financed the arena), DC probably assumed that Pollin (a DC homer and good guy) would never vacate the facility, at least not until the 2047 maturity date.

Obviously, DC is putting up a front for the home town crowd and praying that TL returns to the fold. Also, TL is obligated to remain in DC until 2027. So, DC still wants to generate as much tax revenue as it can from the Wizards/Capitals before they possibly vacate. Last year, social media exposed how empty Oakland Coliseum was during the Oakland A's 2nd to last baseball season at the Coliseum. DC wants to avoid that. But yeah many fans/taxpayers are put off by the whole situation.

https://cfo.dc.gov/sites/default/fil...Ross031907.pdf

PUBLIC HEARING ON BILL 17-0117, “VERIZON CENTER SALES TAX REVENUE BOND APPROVAL ACT OF 2007”

The proposed bill authorizes the District to issue a revenue bond note to DC Arena LP in a principal amount of $50 million for a 40-year period.

…

To minimize the District’s exposure, it is our understanding that the District will obtain a commitment from DC Arena LP to extend the ground lease under which DC Arena LP operates the Verizon Center for another 20 years and to extend the Wizards license agreement by a similar term.

https://barredindc.com/wp-content/uploads/2024/01/1.pdf

AMENDMENT NO. 1 TO LAND DISPOSITION AGREEMENT – GROUND LEASE

Section B.1. Revocation of Lease. Section 5.2(a) of the Ground Lease is hereby amended by added the following new sentence immediately after the last sentence of Section 5.2(a):

“Notwithstanding any prior exercise by the Lessee of its rights and options to extend this Lease pursuant to this Section 5.2(a), if the bonds issued in connection with the implementation of the plan of refinance authorized by the Verizon Center Sales Tax Revenue Bond Approval Act of 2007 are prepaid, Lessee shall have the right, for a period of 120 days after the date on which such prepayment was made, to revoke the extension of the Ground Lease by delivering written notification of such revocation to RLA.”

[North Beach Person]

Originally Posted by NJ2MDdude

Sorry DC; you're bar tab is closed.

It’s a 40-year bond, issued sometime in 2007, with a 2027 call date and a 2047 maturity date. The amended ground lease allows for TL to vacate the facility upon written notification no later than 120 days after paying off the bonds. Since DC dealt with Abe Pollin (who self-financed the arena), DC probably assumed that Pollin (a DC homer and good guy) would never vacate the facility, at least not until the 2047 maturity date.

Obviously, DC is putting up a front for the home town crowd and praying that TL returns to the fold. Also, TL is obligated to remain in DC until 2027. So, DC still wants to generate as much tax revenue as it can from the Wizards/Capitals before they possibly vacate. Last year, social media exposed how empty Oakland Coliseum was during the Oakland A's 2nd to last baseball season at the Coliseum. But yeah many fans/taxpayers are put off by the whole situation.

https://cfo.dc.gov/sites/default/fil...Ross031907.pdf



https://barredindc.com/wp-content/uploads/2024/01/1.pdf

AMENDMENT NO. 1 TO LAND DISPOSITION AGREEMENT – GROUND LEASE

That's the way I understand it. Pollin, or now Leonsis, has the option to pay off the bonds in 2027 and then walk.

I seem to remember a similar bidding war that DC won when Pollin wanted to replace the Capital Center. He may have been a "homer", but he was also a businessman who would go where he could make the most money.

At least Prince George's is getting the FBI HQ.

[NJ2MDdude]

Originally Posted by North Beach Person

That's the way I understand it. Pollin, or now Leonsis, has the option to pay off the bonds in 2027 and then walk.

I seem to remember a similar bidding war that DC won when Pollin wanted to replace the Capital Center. He may have been a "homer", but he was also a businessman who would go where he could make the most money.

At least Prince George's is getting the FBI HQ.

Leonsis can walk in 2027, or he can choose to do nothing and wait for Youngkin's successor. I think Youngkin's term ends in 2026. If the next VA Governor is a Democrat and the Dems retain control of the legislature, NOVA will be in play again.

That's why MD should make a move. NH is an entertainment destination. Leonsis wants a sports entertainment complex. I don't think MGM/Gaylord would object to having the Wizards/Capitals as neighbors. The synergy is there. Why not make NH the premier entertainment destination in the DMV? That will do more for PGC than either the Purple Line or the FBI HQ.