The District of Columbia's attorney general has argued that the NBA's Washington Wizards and the NHL's Washington Capitals are obligated to play games at the downtown arena until 2047, and the city is seeking to prevent the teams from leaving. This was the latest simultaneous attack.
In a letter Brian Schwalb wrote this week to Monumental Sports and Entertainment and obtained by The Associated Press on Friday, Schwalb extended the team's lease for an additional 20 years beyond its original expiration date, through 2027. He mentioned the warranty contract for the 2007 renovation, which will be extended.
The letter comes as Monumental's $2 billion plan to build a new arena across the Potomac River in Alexandria remains stalled in the Virginia General Assembly.
Schwalb said D.C. Mayor Muriel Bowser's $500 million proposal to renovate Capital One Arena still stands. Bowser urged Monumental to consider doing so in a Washington Post op-ed last month and said the city would enforce lease terms if necessary.
“The District strongly urges not to pursue any potential claims against MSE,” Schwalb wrote in a letter dated Tuesday to Monumental General Counsel Abby Blomstrom in response to a letter he sent to the city last month. I hope so,” he wrote. “The company remains committed to maintaining and expanding its partnership with MSE to keep the Wizards and Capitals at the arena through the end of their existing lease in 2047 and beyond. In that spirit, As such, the district is asking MSE to re-engage with district staff around a mutually beneficial arrangement that promotes the long-term interests of both the district and MSE.”
Monica Dixon, Monumental's chief executive officer, explained the company's case on February 12 when asked about the impact of the lease. When a Monumental spokeswoman was contacted Friday, she referred to Dixon's comments.
“We have not been able to begin negotiations with the city or the state of Virginia over the past two years without sound legal counsel, and we are confident in that,” Dixon said at the time. “If this were to lead to litigation, we should proceed with that process and I hope it doesn't, but we are confident in the lease and amendments we have signed. ”
Since then, Virginia Democratic Sen. L. Louise Lucas has used her position as chair of the Appropriations Committee to close down the arena agreement struck by Republican Gov. Glenn Youngkin and Monumental Director Ted Leonsis. They tried to remove it from the state budget. This development does not necessarily mean the end of the plan, but it does complicate the path forward.
“Why are we discussing an arena at Potomac Yards with the same organization that is breaking agreements and commitments with Washington, D.C.?” Lucas wrote on social media. “Does anyone believe they wouldn't do the exact same thing to us?”
