GREAT NEWS: The DC attorney general claims that the Wizards and Capitals won’t be allowed to leave the city until 2047. According to Monumental, they can.
In the ongoing drama surrounding the potential move of the Washington Capitals and Wizards clubs’ arena from Washington, D.C. to Alexandria, Virginia, there has been another development. The teams have a contractual obligation to stay in the District until 2047, according to a letter from the Office of the Attorney General in the District of Columbia.
Attorney General Brian Schwalb of D.C. cited legislation from July 2007 in a letter dated Tuesday to Abby Blomstrom, general counsel of Monumental Sports & Entertainment. The legislation provided $50 million through municipal bonds for arena renovations, with the stipulation that the lease be extended an additional 20 years beyond its initial 2027 time frame.
Monumental has previously claimed, using changes to the original agreement, that it is legally able to terminate its lease at Capital One Arena early.
In response, Schwalb said that no changes to the law would enable the business to “extinguish or revoke the lease extensions upon prepayment of the outstanding bond debt.”
He added that by talking with Virginia, Monumental has already violated many terms of the contract.
According to the attorney general, the agreement contains provisions stating that if Monumental ever intended to move the Capitals and Wizards, it would have to give D.C. advance notice of its intention, negotiate solely with D.C. for six months, refrain from negotiating with any other parties during that time, give D.C. written notice of any new agreements it planned to enter into with third parties after the six-month negotiation period, and give D.C. ninety days to make a competing offer.
The $500 million offer from D.C. Mayor Muriel Bowser to restore Capital One Arena is still on the table, according to the letter.
Bowser’s office informed WTOP that it is now unable to comment on the letter from the attorney general of D.C. Nonetheless, the mayor stated that the city will uphold the lease’s conditions if needed in an opinion article published in The Washington Post last month.
This sentiment was reflected in Schwalb’s letter.
In the letter, Schwalb stated, “The District very much prefers not to pursue any potential claims against MSE.” The organization is dedicated to upholding and expanding its collaboration with MSE, as well as securing the Wizards and Capitals’ home in the Arena through the conclusion of the current lease agreement in 2047, if not longer. In keeping with that, the District is pleading with MSE to get back in touch with District representatives in order to work out a mutually advantageous plan that serves the long-term interests of the District and MSE.
“We fundamentally disagree with the Attorney General’s opinions, which are contradicted by the DC General Counsel as recently as 2019 when the city ratified the Ground Lease,” a Monumental spokeswoman said in response to the letter, referring to a change made to the lease, per WTOP.
This is just the most recent issue that Monumental has encountered as the Virginia legislature has put the company’s $2 billion plan for a new arena in Alexandria on hold. Early this month, Democratic Sen. L. Louise Lucas, the chair of the Finance and Appropriations Committee, removed money for the arena from the state budget.
“With the same organization that is violating their agreement and commitments to Washington, DC, why are we discussing an arena at Potomac Yard?” Lucas shared writing on social media. Is there anyone who doesn’t think they would treat us exactly the same way?
A handshake agreement to construct a new arena and relocate the teams to Alexandria’s Potomac Yard neighborhood was revealed in December by Ted Leonsis, the owner of the Washington Wizards and Virginia governor Glenn Youngkin.
A handshake agreement to construct a new arena and relocate the teams to Alexandria’s Potomac Yard neighborhood was revealed in December by Ted Leonsis, the owner of the Washington Wizards and Virginia governor Glenn Youngkin.
This report was made possible by the Associated Press.
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