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District May Fund Arena Upgrades
Wizards owner Abe Pollin, who built the arena with private financing, requested the bill.
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Council member Mary Cheh (D-Ward 3) was harsher. "I don't think the city should be an ATM for sporting authorities," she said. "There's caution on my part."
Council member David A. Catania (I-At Large), a critic of the publicly funded baseball stadium, said that Pollin has been good to the District and that the $50 million could be a good investment of the city's money. But, he said, "I feel much more inclined to be supportive because this has been a partnership."
Under the proposal, the city would issue the bonds, which would be repaid by a 4.25 percentage-point increase in the tax on tickets and merchandise at Verizon Center. The current tax at the arena is 5.75 percent, so the legislation would push the tax to 10 percent.
Because about 60 percent of patrons at the center are from Maryland and Virginia, Evans said, much of the increase could be considered a "user tax" on nonresidents. "People who use the arena are going to the pay for the arena," he said.
The tax increase should generate about $4 million annually, said Evans, who heads the council committee on finance and revenue.
Barry credited Pollin with reviving the once-desolate downtown area, which has become a hot spot for restaurants and entertainment. "You have a growth downtown that's outstanding and out-of-sight," Barry said.
More than a decade ago, the city spent $70 million to buy the land at Seventh and F streets NW, improve the Metro station at Gallery Place-Chinatown and make other upgrades. But Pollin had to come up with $220 million in private financing to build Verizon Center. By contrast, the city has agreed to spend up to $611 million for the ballpark that will be home to the Nationals.
When the city requested a box at the Verizon Center in 1997, Pollin refused because the arena was built primarily with private funds.
Instead, Pollin offered a discounted, 12-seat box at $625,000 for five years. Barry, who was mayor at the time, entered into a lease, but it was stopped after criticism from city residents and Congress.
Now, in addition to offering a luxury suite, Pollin said that at Gray's request, he will open Verizon Center for the City Title girls' and boys' basketball championship games March 5 at no cost. Pollin's company, Washington Sports & Entertainment LP, will recoup expenses through ticket sales, said Matt Williams, a company spokesman.
