Her opposition left the project in limbo, and Youngkin (R) was furious. “I'm perplexed,” Lucas said at a news conference Thursday at the foot of the steps of the state Capitol, smiling with disappointment. From the portico above. Youngkin, a former private equity head and billionaire, brought together his Harvard MBA and all his business experience, as well as that of a team of high-finance advisors, but in the end, the governor was not his CEO. Richmond had to face the humbling truth that there is no such thing.
For the Arena Plan to work, General Assembly leaders need to be on board. Lucas, who became chairman of the Senate Appropriations Committee this year, has tremendous power as one of the gatekeepers of the state budget. And she says that after 30 years as a black woman she has climbed the ladder in the former Confederate capital, Lucas says she is being shut out of the process of her dealings. Felt.
In an interview last week, Lucas said he was looking out at Potomac Yard Arena. The proposal is not only a risk to the state's finances, but also a test for the newly emerged black legislators who hold the speaker's gavel and the chairs of each chamber's finance committees.
“While African Americans have this level of leadership, the last thing I want is for this to go south,” she said. “I wasn't willing to take that risk.” Mr. Lucas, who describes himself as “a product of the civil rights movement,” said that if the project failed, it would make it seem like he and other black leaders “weren't going to make it.” He said he was worried that it would happen.
Thanks to her actions, the arena is not included in the budget approved by the General Assembly on Saturday before the adjournment of this year's legislative session. Youngkin will most likely introduce legislation and budget amendments when lawmakers return to Richmond on April 17 to take up bills the governor has vetoed or amended. There is an option to revive it. She said he could convene a special legislative session specifically for arenas, but she said that seems unlikely for now.
But the failure of previous projects, dating back to his days at private equity firm Carlyle Group, is a blow to Yonkin's bid to make his mark on what he calls the largest economic development deal ever negotiated. It has become.
“I am concerned that the Senate's response to this opportunity will damage Virginia's business climate,” he said at a press conference Thursday. “That's a clear signal… [projects like these] Rather than being judged on their merits, they will be viewed through the lens of partisan parochial interests. …I believe this is a huge mistake for the Federation. ”
Lawmakers and others familiar with the negotiations, some of whom spoke on condition of anonymity for fear of alienating Mr. Yonkin as hundreds of bills await his action, said the administration is tightening the process. He said he was managing it. Starting just before Christmas, Youngkin's political adviser Matthew Moran, along with two cabinet ministers, lobbyists, and representatives from Alexandria, Leonsis' company Monumental Sports & Entertainment, and other private companies involved, have been holding a weekday meeting at 8 a.m. on the project. Led the conference call.
Yonkin was in regular contact with Lucas by phone and through staff members regarding the arena and other matters, but 3 Mr. Leonsis delayed his meeting with Mr. Lucas specifically to provide guidance to the governor's team, according to people familiar with the situation.
Youngkin spokesman Rob Damschen said the account was “completely false.”
Mr. Leonsis called several leaders earlier this year, including Mr. Lucas once and House Appropriations Chairman Luke E. Torian (D-Prince William) twice. said each member of Congress, but other than that, Mr. Youngkin's office and lobbyists acted as intermediaries.The arrangement may have prevented an inadvertent outburst on social media, where Lucas is notoriously active. Frankly, it also prevented lawmakers from developing a personal stake in the project.
Monumental Sports & Entertainment declined to comment on the matter, citing a statement released Friday night. “We look forward to ultimately receiving a fair hearing on the merits of the proposal so that this important project can move forward for the benefit of our fans, players, employees and Virginia residents.” the company said.
At the beginning of the legislative session, some of the people involved in promoting this project, including the governor's office and a team of lobbyists, and the Capitol Square Basketball Classic, an annual charity basketball doubleheader contested by the House of Representatives and the Legislature, traveled to Washington, D.C. He proposed bringing Wizards dancers to Richmond. Senate. But as the Feb. 29 game approached, the outlook for the arena darkened, and some feared the move looked like a premature victory lap. Although the idea was scrapped, Monumental's name was still flashed on jumbo screens above the court.
Senate Majority Leader Scott A. Surovell (D-Fairfax) sponsored the arena bill in his own chamber and was inclined to support it. The governor has never seriously engaged with lawmakers on specifics, including funding, although he said there may be changes to the project if certain changes are made. Stated.
“He said funding is non-negotiable and our priorities are non-negotiable,” Surovell said. “He needs to learn that this is not Carlyle, this is not a corporation. We are equal chapters, and if he wants us to work together, he needs to learn that this is not just what is important to him. , we need to learn how to compromise and dialogue about issues that are important to both him and us.”
In the House, Speaker Don L. Scott Jr. (D-Portsmouth) maintained steady communication with Mr. Youngkin, and support in this arena appeared to be growing. The House passed a standalone bill creating oversight authority for arenas and included language in the budget bill, but Lucas blocked both when introduced in the Senate.
On Friday, Scott said he fully supports Lucas' efforts to do “due diligence” on the ambitious project. But he added that it was too early to write it off. “This is politics. Nothing is dead until it's dead,” he said. “I understand it may look that way and it may end up being that way, but the fourth quarter wasn't played.”
As support for Arena wanes as the General Assembly draws to a close, Scott, Torian and Republicans on the Budget Conference Committee, Terry G. Kilgore (Scott), Terry L. Austin (Votourt), Robert – S. Bloxom Jr. (Accomack) met with Youngkin on Wednesday at the Capitol Square high-rise where the governor's office is located.
Two people familiar with the meeting, speaking on condition of anonymity, said the House delegation was willing to elect Lucas if the governor proposed anything beyond the fare reductions and unspecified increase in Metro funding that he has already proposed. He said he believed he could be extradited. Share private conversations.
Participants first asked about a bill to create a regulated cannabis market, but Youngkin reiterated that he was not interested in that, and quickly moved on to other topics. That includes the minimum wage, which Democrats have voted to raise to $15 by 2026, the two said. The group said it would later come back with a list of potential issues that could bring Lucas to the negotiating table.
But before that could happen, Youngkin contacted Lucas and she told him it was over.
Lucas acknowledged that he annoyed some lawmakers by refusing to hold public hearings on two separate arena bills. She also acknowledged that she may be putting some of her legislative priorities at risk because of Yonkin's tendency to veto them in revenge. “When you feel strongly about something, you know you have to make some sacrifices,” she said.
But she is hopeful that Yonkin (who, like other Virginia governors, cannot serve consecutive terms), who leaves office in January 2026, will ultimately be able to accomplish his priorities. ing. Four,” Lucas said.
When asked if the lack of progress on the project so far is hurting Virginia, given the governor's high-profile announcement, Lucas said: It's not my problem. “
Mr. Torian acknowledged that he enjoyed his meeting with Mr. Leonsis on Wednesday, which Mr. Torian attended along with Senate Democratic Caucus Chairwoman Mamie E. Locke (Hampton). They chatted about the Wizards and Capitals, Torian said, and Leonsis explained the community outreach work both teams do in the district.
Lucas argued that she was frustrated by the “moral obligation” of state and local taxpayers to pledge support for bonds to finance the project. She said the public would be at risk for millions of dollars in the event of any catastrophe. Leonsis noted that much of the team's revenue comes from media rights, which will continue to flow even if something like a pandemic prevents in-person games. He said his company never missed a mortgage payment during the coronavirus shutdown.
In the end, Lucas said he was still against it, but Leonsis said he regretted not meeting her sooner. “He said, 'You should have reached out to him,'” Lucas recalled. “He said, 'I was treated as invisible from the beginning.'”
Torian, who witnessed the exchange, later said that things might have been different if Lucas had been involved from the beginning.
“Perhaps if he had spent some time with her, who knows? “If they had spent a little more time together — you'll never know.'' he said.
