Sen. Adam Ebbin Says “it is critical we don’t rush to approve” Proposed Potomac Yard Wizards/Caps Arena; Senate Finance/Appropriations Chair Louise Lucas Refuses to “Docket” the Bill
Sen. Ebbin: "Three components must be in any bill I could consider supporting"
UPDATED 1:47 pm – See the following video and transcript of Sen. Louise Lucas this morning explaining her reasons for not docketing the arena bill.
“As everyone is aware, I have used the Chair’s prerogative to not docket the governor’s arena legislation. Previous chairs have used the same prerogative and no one made a fuss about it. I admire the customs of the Senate, but it is simply not a rule. I did not even schedule my own bill.
Fundamentally, the reason that I decided to not docket this bill is it places too much risk on the Commonwealth. The governor’s proposed deal has many unanswered questions and potential conflicts of interest. The governor refuses to negotiate and simply believes this co-equal branch of government should rubber stamp the Glenn Dome. The proposed arena relies on the Commonwealth’s moral obligation debt. If the project’s revenues are insufficient to cover the debt, taxpayers are on the hook to bail out this project. The underlying finances show that this project is not viable without our credit rating. Once we open the tap of financing giveaways for billionaires, we open the door for future Governors to ask for similar treatment. The more we use the Commonwealth moral obligation for financing private development ,the more risk we place on not being able to finance actual services for higher education, public safety, health services and natural resources.
Everyone knows I waited a long time to be chair of finance and appropriation. But I’m not going to allow the governor to endanger the Commonwealth’s stellar bond rating on my watch. I will not allow a billionaire to build his company’s wealth on the taxpayer’s dime. At every turn, the governor thinks that he should be able to use the executive branch to enrich his friends. This is not how Virginia awards contracts or contacts economic
development projects to the Commonwealth.
Finally, over the weekend, the governor said progressive Democrats are content to concede and to compromise away. And I’m here to tell…the governor that this Democrat is not conceding to a half-baked Glenn Dome that compromises the Commonwealth’s financial position for his billionaire friends.”
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See below for a statement from VA State Senator Adam Ebbin (D), who represents the Potomac Yard area, as well as much of Alexandria, in the State Senate. According to Sen. Ebbin, the transportation component of this plan “could never be achieved unless Metro receives long-term, sustainable funding from the Commonwealth.” Unfortunately, as Sen. Ebbin explains, Gov. Youngkin’s budget “includes zero commitment to long-term funding of the Metro system.”
Meanwhile, this morning, Senate Finance and Appropriations Committee Chair Louise Lucas opted NOT to docket the Senate bill (SB718) on this project, arguing that the legislation “put too much risk on the Commonwealth” and that “it would be atypical and precedent-setting to use the Commonwealth’s contingent moral obligation debt to fund a private economic development project.” So at this point, who knows where this project is going, but it’s most certainly not a done deal – nor should it be, for a whole host of reasons!
Last November, Governor Glenn Youngkin announced his proposal to relocate the Washington Wizards NBA team and the Washington Capitals NHL team from DC across the river to a to be constructed two billion dollar arena to be built in the City of Alexandria’s Potomac Yard neighborhood. There is no question that the arena and entertainment district proposal, which also includes a separate 3,000 capacity concert venue, is a unique opportunity for Alexandria to diversify its tax base.
The House of Delegates version of the bill, HB 1514, sponsored by Delegate Luke Torian of Prince William was recommended on 17-3 vote by the House of Delegates Appropriations Committee for the consideration of the full House.
The Senate cognate of that bill, SB 718, sponsored by Senator Scott Surovell of Mount Vernon was not docketed for a hearing before this Tuesday’s crossover deadline for all bills to pass in their house of origin. Senator Louise Lucas, chair of the Senate Finance and Appropriations Committee reasoned that the bill put too much risk on the Commonwealth, possibly leaving taxpayers on the hook for the bonds issued for financing. Lucas also pointed out that the project’s proposed financing was not viable without the public bond issuance. She also said it would be atypical and precedent-setting to use the Commonwealth’s contingent moral obligation debt to fund a private economic development project.
Even though the bill has not yet been considered by the traditional pre-crossover deadline, the House version of the bill could advance and be considered by the Senate—and the Senate rules do allow for the governor to send down another bill at any time. The project was also included in the governor’s proposed budget.
In my opinion, it is critical we don’t rush to approve a project that would impact generations of Virginians without answers to important questions. Three components must be in any bill I could consider supporting. First, the protection of the communities that would be most directly impacted–including a deep investment in affordable housing to avoid driving out families who live in nearby neighborhoods. Second, Northern Virginians need a real commitment from the Commonwealth to the long-term health of the Metro system. And third, I need confidence that the project would include meaningful and binding agreements to create good-paying jobs, in construction, service and hospitality through Project Labor and Labor Peace Agreements.
The governor’s transportation report released from the Kimley Horn firm contains a number of potential improvements–most of which have merit. Unfortunately, the report, just like the governor’s introduced budget released in December, includes zero commitment to long-term funding of the Metro system. Unfortunately, the only commitment the governor has mustered is one to consider budget amendments for short-term Metro funding. The report predicts that Metro could in the future support 50% of the arena traffic to Potomac Yard. Unfortunately, this could never be achieved unless Metro receives long-term, sustainable funding from the Commonwealth.
As I said, for this proposal to win my vote, it must do three things. First, enhance the community’s quality of life experience, not harm it. Second, provide good-paying jobs and careers. And third, the project must fit hand-in-glove with a long-term transportation vision for our thriving but traffic-choked region. I prefer that consideration of this proposal not be rushed because it is clear to me that adequate answers have not yet been provided to fundamental questions.
For my part, as long as the Potomac Yard proposal is alive, I’ll keep pushing for answers on transportation, affordable housing, and worker protections.
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