D.C. Mayor Muriel Bowser has proposed legislation that would have the District purchase Capital One Arena from Monumental Sports & Entertainment for $87.5 million and lease it back to the owner of the Washington Wizards, Capitals and Mystics through 2050.
The proposal stems from a March agreement between Monumental CEO Ted Leonsis and Bowser to keep the NBA and NHL franchises playing in the District in a renovated arena that will receive $515 million in public money between fiscal 2025 and fiscal 2027.
The proposal includes the addition to the lease of an alley that fronts Sixth Street NW and abuts the arena and Gallery Place, an adjacent mixed-use property that was purchased earlier this year by a joint venture of MRP Realty and Global Fund Investments with plans to give at least part of the building over to D.C. and Monumental.
Monumental intends to put $372.5 million into the multiyear renovation of the arena, according to a contract summary — and that number includes the reinvestment of the $87.5 million purchase price spelled out in Bowser’s proposal. Monumental would be solely responsible for cost overruns related to the arena renovation.
