Editor’s note: This story has been updated from a prior version to clarify the sourcing of the materials used in the analysis.
An analysis has found that moving the Washington Wizards and Capitals to Alexandria would have an enormous economic impact on the city and the state of Virginia.
The study reviewed the economic and fiscal impact of Potomac Yard development with and without the planned sports entertainment complex.
The 27 page study made public Feb. 16 was prepared by HR&A Advisors, a real estate consultant firm, for the Alexandria Economic Development Partnership. The firm’s analysis is based on a business model prepared for Monumental Sports & Entertainment by CSL International.
It concluded that if Monumental Sports sets up its headquarters and NBA and NHL teams in Potomac Yard, it would mean nearly $34 million a year in tax revenue for Alexandria — nearly seven times more than the $5 million which would be generated by the Potomac Yard site without the sports arena development.
It also shows the fiscal impact on the Commonwealth of Virginia would be more than $40 million per year versus $17 million without the sports complex.
Revenue from private development at the site, including a grocery store and other retail spaces, a day care center and a gym, is estimated at about $54 million in total sales without the sports entertainment complex — compared to about $287 million with it.
The study also concludes that the Monumental Sports’ move to northern Virginia would have a big impact on jobs, estimating the project would create 29,555 permanent jobs for the state compared to 12,330 without the sports development.
In the short run, the study found that developing Potomac Yard with the sports arena project would spark 2,535 one-time construction jobs for Alexandria and 17,645 for the state of Virginia. That’s compared to 345 one-time construction jobs for Alexandria and 2,380 for Virginia without the sports arena project.
The analysis concluded that the Potomac Yard site developed without Monumental Sports would likely mean housing, office and retail space totaling more than 1 million square feet — but development with Monumental Sports would include housing, office and retail space plus a hotel sports arena, entertainment center and conference space totaling more than 9 million square feet.
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