JBG SMITH Releases Statement on Potomac Yard Entertainment District Proposal

JBG SMITH has issued a statement on the Potomac Yard Entertainment District.

Statement from Matt Kelly, CEO, JBG SMITH to stakeholders:

Dear JBG SMITH Stakeholders:

In December, we announced plans to develop an entertainment district in Potomac Yard, anchored by the Washington Capitals, Washington Wizards and the Monumental Sports & Entertainment corporate headquarters. Today it was announced that discussions between Monumental, Alexandria and the Commonwealth of Virginia have been terminated. While we had made great strides in advancing the project’s transportation plan, overall design and financing structure, the opportunity was derailed largely due to partisan politics and, most troubling, the influence of special interests and potential pay-to-play influences within the Virginia legislature.

This was a once-in-a-generation opportunity to build a world-class arena and entertainment district at Potomac Yard and to realize the vision of that community as a dense, mixed-use neighborhood. We are thankful to those who made the opportunity possible in the first place, especially Monumental Sports. We are also thankful to our local partners, specifically the City of Alexandria and its City Council, Alexandria Economic Development Partnership, and the Governor’s office, and the many public supporters along the way who engaged in thoughtful dialogue about how to move this important opportunity forward.

Despite our best efforts, this project was unable to get a fair hearing on its merits with the Virginia Senate. It is now clear that our efforts may have been complicated and ultimately blocked, in part, by special interests seeking to move the Monumental arena to Tysons Corner and to combine it with a casino. The Washington Post and other outlets have reported on this scheme and the hundreds of thousands of dollars, enormous sums in Virginia politics, of political contributions associated with it – a large portion of which were directed to key senate leaders. When one follows the money, the implications are deeply troubling for Virginia and for the future of transparency in economic development pursuits, especially those that seek certainty through the now damaged MEI legislative process.

Beyond the arena, state and local governments will lose needed tax revenue, economic development credibility, and what could have been Virginia’s last best chance to land a professional sports franchise for at least a generation. Economic development and growth thrive on transparency and predictability. The scheming and special interests that plagued this opportunity in the Virginia legislature will no doubt cause future employers and the next Monumental to question whether their opportunity will get a fair hearing.

This opportunity also brought with it the potential to add tens of thousands of jobs and needed housing units, including 1,000 units of affordable housing preservation in Alexandria which we had pledged as part of the arena proposal. Traffic and transportation investments, including possible Metro funding, are also likely gone. Instead, the existing surface-parked, single story shopping center on the site will remain through the remaining 20-year term of the Target lease and development on the remaining land will likely be far less dense. To say we are disappointed is an understatement; we are disgusted with the back-room-dealing and opaque scheming that took place as this played out.

With this chapter now closed, we will continue to pursue alternate uses and amenities to further develop our sites adjacent to the Virginia Tech Innovation Campus. We will also continue to work tirelessly to attract business and customers to the Commonwealth of Virginia and the local communities in which we invest, and most importantly we will always conduct ourselves in a manner in which we and our stakeholders can be proud. We thank you for your continued trust and confidence.

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