Former Democrat Secretary of Finance Backs Youngkin’s Deal with Monumental
Sports




“This is truly a once-in-lifetime opportunity."




ICYMI: Former Democrat Secretary of Finance in Virginia penned an op-ed
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for the Richmond Times-Dispatch backing Governor Glenn Youngkin’s deal with
Monumental Sports and Entertainment to bring the Washington Capitals and
Wizards, tens of thousands of jobs, and billions of dollars in economic impact
to the Commonwealth.



Aubrey Layne, who served under Governors Ralph Northam and Terry McAuliffe,
touted the unique structure of the partnership and the “once-in-lifetime
opportunity" for Virginia.




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Monumental arena project is a win for Virginia, economy
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By Aubrey Layne

January 26, 2024




These next few weeks could bring an exciting step forward in the future of
Virginia’s economy.



Legislators are considering a proposal to establish a new Virginia Sports and
Entertainment Authority as part of a plan to welcome the Washington Wizards and
Washington Capitals to a brand-new sports arena in Alexandria.



...



Through a unique public-private partnership, a new Virginia Sports and
Entertainment Authority would issue bonds to support the $2 billion project.
Importantly, the commonwealth is not committing any upfront dollars to the
project and utilizing no existing tax revenues or creating new taxes, unlike
other similar deals seen across the country. The bonds will be paid back in
full by revenues generated by the project itself.



...



Because of this unique structure, and because all revenue used to pay bonds on
this project is revenue that otherwise would not exist, there should be no
impact on the commonwealth’s direct borrowing capacity for essential
investments that aren’t revenue-producing, such as building and maintaining
schools, state buildings and other public projects. Virginia’s Debt Capacity
Advisory Committee reviewed the project and confirmed this view.



...



All in all, this unique structure — no upfront cash, the responsible use of
the commonwealth as a moral backstop and a one-of-a-kind public-private
partnership — also preserves the General Assembly’s ability to continue
investing in other priorities, including K-12 education, behavioral health and
important regional priorities like toll relief in Hampton Roads.



Beyond the benefits of the financing structure, the long-term payoffs are more
compelling. This is truly a once-in-lifetime opportunity.



...



With a zero upfront cash commitment, the return to the commonwealth is
projected at $12 billion in economic impact over the next 40 years. This
includes $4.6 billion in direct cash — new revenue — paid to the commonwealth’s
general fund after debt servicing.



...



The opportunity also has the potential to create 30,000 new jobs — an
astronomical total for one project that would easily make it the largest single
jobs announcement in Virginia history, even surpassing the neighboring Amazon
HQ2 opportunity.



The project would include more than $300 million in transportation and
infrastructure improvements and $30 million in new education funding with no
general fund commitment from the commonwealth.



...



As the General Assembly considers this opportunity, its members can evaluate
these huge rewards knowing that the commonwealth is not putting at risk its
treasured sterling fiscal reputation, nor is it ignoring the needs of
Virginians. I am confident that once evaluated in this context, our leaders
will seize this moment.




Paid for by Spirit of Virginia



Spirit of Virginia, PO Box 3950, Merrifield, VA 22116



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