The D.C. Council held its first hearing on the mayor’s proposed deal with Monumental Sports and Entertainment that centers on the future of Capital One Arena and the area around the facility.
About two dozen people were scheduled to testify on the pros and cons of the plan, which includes the city’s purchase of the arena for nearly $88 million. The city is offering up about $515 million to buy and renovate the arena, with MSE putting up the rest of the cash to complete the $800 million project.
At-large Council member Robert White began the hearing by praising the deal, and arguing that the revenue generated by the events held there will have a positive impact throughout the city.
He said it’s crucial for the Downtown area’s survival.
“Office buildings are not filling up the way they did before, and they won’t again. Doesn’t matter what Donald Trump, Jeff Bezos, Muriel Bowser ask people to do, it’s not going to happen,” White said. “If we’re going to keep D.C. moving forward, without cutting programs and placing more tax burden on residents, we have to adapt.”
Ward 2 Council member Brooke Pinto, who represents the district where the arena stands, echoed White’s sentiment.
“The arena is a pillar of Downtown D.C. and will continue to be a key component of our strategy to strengthen the future of downtown and the District,” she said. “Let’s also be clear that this investment that we’re making is about much more than what happens inside the arena. It’s also about maintaining a strong anchor for Downtown D.C. that is going to drive economic growth for decades to come.”
Along with representatives from the mayor’s office and Monumental Sports, about two dozen people were signed up to testify about the deal, though several did not show up.
“This project will play a pivotal role in driving economic revitalization, supporting local businesses and employment, and establishing a modern, vibrant center for residents and visitors alike,” said Liz DeBarros, CEO of the D.C. Building Industry Association.
At-large councilman Kenyan McDuffie joined in on the praise for the planned renovations.
“The sports economy in the District supports thousands of good-paying jobs,” McDuffie said. “There are jobs in the front office. … There are jobs providing services in the arena. There are jobs in the media department. There are jobs in ticket sales and customer service, and with a project like this, there are jobs in construction and remodeling of the arena.”
Residents respond
But even some of those who supported the project expressed concern about the amount of money D.C. would get, and what it would receive out of the project.
“I am confused because Mr. Leonsis, Ms. Johnson and Monumental Sports have access to capital outside of my reach and those of many others in the District, and yet they seek tax dollars for their playground,” said former ANC treasurer Robert Brannum, referring to Monumental CEO Ted Leonsis and Sheila Johnson, a principal shareholder in Monumental’s sports teams.
But Brannum added that he wanted the business community to do more to help the District in regards to home rule and other civic issues: “There is a need for (the) business community to mount up for home rule and statehood as they seek D.C. tax dollars, bringing coaches and players with students, represents an easy philanthropic play.”
As the hearing went on, the debate centered less around the project itself, but rather how it would be done. Multiple business leaders focused on the Project Labor Agreement, which requires union workers to be hired for some of the construction.
Marcus Jackson, of the Associated Builders and Contractors of Metro Washington, argued that will make it harder for city residents, especially minority residents who own construction businesses, to benefit from the project.
“PLAs let union hiring halls locate outside of the city pick who gets the work on the project and who doesn’t,” Jackson said.
And he pointed out that, among workers who recently constructed the new Frederick Douglass Memorial Bridge, there was only one Ward 8 resident: “A $480 million bridge built entirely in Ward 8 and only one job was created for a Ward 8 resident,” he said.
Deputy Mayor Nina Albert said this project would be structured differently so that “Certified Business Enterprises” in D.C. — the small businesses owned by city residents — would get at least 40% of the work, with a goal of even more. The work set to go to union members isn’t typically sought after by CBEs, Albert said.
“I believe that we can thread the needle and complement both,” she said.
In all, 51% of the new hires by contractors working on the project are supposed to be city residents. But Albert also conceded that it’s hard to guarantee that’s how it will unfold.
“What we can do is make sure that the outreach is done so that people who are seeking a job related to this project know when the job is available and know who the hiring party is,” she said.
A final vote on the deal will be held Nov. 26 or Dec. 3, according to Council Chair Phil Mendelson.
Monumental’s Chief Administrative Officer Monica Dixon said most of the work related to this project will be completed during the summer months over the coming years, when the arena is less busy. She also said, however, that Monumental was ready to get some of the work started as soon as things are signed, sealed and delivered.
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