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Not so fast. Proposal to relocate Wizards, Capitals to northern Virginia hits roadblock in legislature

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Not so fast. Proposal to relocate Wizards, Capitals to northern Virginia hits roadblock in legislature


RICHMOND, Va. — A proposal to lure the the NBA’s Washington Wizards and NHL’s Washington Capitals to Alexandria, Virginia took another big hit Thursday, when top Virginia lawmakers confirmed the budget they will take up later this week would not include language enabling the deal.

The news does not necessarily mean the end of the road for Gov. Glenn Youngkin’s ambitions of landing Virginia its first major pro sports teams in nearly 50 years through a $2 billion development district featuring a new arena. But it complicates the path forward for a top Youngkin priority that requires legislative approval.

In a news conference at the foot of the Capitol steps, the Republican governor said he believed the Democratic-led General Assembly was poised to make “a colossal mistake” and argued that lawmakers should reconsider and restore the project language to the budget before sending it to his desk.

“They have a chance to stand up and do what’s right. They have a chance to assess this one-of-a-kind, first-of-its-kind economic development opportunity on the merits of the opportunity,” he said.

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State Sen. L. Louise Lucas of Portsmouth, a senior Democrat who used her perch as chair of the Senate Finance and Appropriations Committee to keep the deal out of the pending budget legislation, stood on the Capitol portico as Youngkin spoke, looking down and sometimes smiling.

The deal’s leading opponent and a sharp critic of the governor, Lucas told reporters she remains firmly opposed to the proposal, in large part because of its reliance on bonds backed by the state and city governments.

Both Lucas and Democratic Del. Luke Torian, who chairs the House Appropriations Committee and led negotiations for his chamber, confirmed that the arena-related provisions were removed from the budget legislation, which lawmakers are expected to take up Saturday.

The legislation had been in the hands of a conference committee — a small, bipartisan group of legislators that’s been meeting behind closed doors to find compromise — after the two chambers passed competing budget bills earlier this session.

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The budget was the last vehicle remaining this session for legislation to pave the way for the deal. Two other standalone bills were defeated after Lucas refused to grant them a committee hearing.

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Youngkin and other backers have a few ways to try to keep the project alive. If lawmakers send the governor a budget without the arena language, he could pursue an amendment to restore it. Or he could call a special session, starting over with a new bill.

Legislators could also reject the budget and send it back to the conference committee, though Senate Majority Leader Scott Surovell said in an interview that’s not likely to happen.

Surovell, who said he did not anticipate budget negotiators would be open to more last-minute talks before Saturday, also criticized Youngkin for what he called an unwillingness to consider some top Democratic top priorities.

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“This is a process that requires compromise, and so far the governor has made very little indication that he’s willing to compromise,” said Surovell, who has been more open to the deal than Lucas.

Youngkin rolled out the proposal with great fanfare in December when he and Ted Leonsis, an entrepreneur and the ultrawealthy CEO of Monumental Sports and Entertainment, the Capitals’ and Wizards’ parent company, announced that they had reached an understanding.

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FILE – Interior view of Capital One Arena in Washington, D.C., on Wednesday, May 26, 2021. (Andrew Harnik/AP)

The Wizards, previously known as the Bullets, played in Baltimore from 1963 to 1973, when the franchise moved to the then-new Capital Centre in Landover, Maryland. They were joined there the following year by the expansion Capitals. In 1997, both franchises left suburban Maryland for a new downtown venue in Washington, now called Capital One Arena.

The competition within the DMV for the Capitals and Wizards comes as the District of Columbia also tries to lure the NFL’s Washington Commanders, who now play in Landover, back to the city. The U.S. House of Representatives last month passed a bill that would allow the District to redevelop the site of the team’s former home, RFK Stadium, into a mixed-use project that possibly includes a new stadium. Maryland’s congressional delegation opposed the measure amid Gov. Wes Moore’s efforts to keep the Commanders in Maryland, The Washington Post reported.

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The Virginia deal calls for the creation of a $2 billion development, partly financed by public money, in the Potomac Yard section of Alexandria that would include an arena, practice facility and corporate headquarters for Monumental, plus a separate performing arts venue, all just miles from Washington’s Capital One Arena, where the teams currently play.

The company said in a statement that it is disappointed but remains “hopeful that the merits of the proposal will eventually get a fair hearing so this important project can advance for our fans, players, employees and the residents of Virginia.”

In Washington, Council Chair Phil Mendelson welcomed the news and expressed hope that the teams would remain in the city, which has made a $500 million offer to renovate Capital One.

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“The Arena and Monumental Sports have been partners with the District for almost 30 years, and a great asset to downtown,” Mendelson said in a statement. “As a deal in Virginia remains uncertain, the Council continues to be ready to welcome Monumental Sports’ change of mind.”

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Under the Youngkin-negotiated terms, Monumental and the city of Alexandria would contribute some funds up front, but about $1.5 billion would be financed through bonds issued by a governmental entity that lawmakers would set up.

The bonds were to be repaid through a mix of revenues from the project, including naming rights, parking fees and taxes on tickets, concessions and athletes competing at the arena. Proponents say that would more than cover the debt, creating new revenues for the city and state in the project’s first year. But about a third of the financing would be backed by the “moral obligation” of the city and state governments, meaning taxpayers could be on the hook if the project revenues don’t come through as expected.

Youngkin, a private equity executive before he ran for public office, emphasized that the state would not be putting in upfront cash and that revenues that “otherwise will not be here” would help finance the deal. And he warned that the Senate’s handling of the deal could threaten Virginia’s business-friendly reputation.

Lucas dismissed that concern and said she had serious worries about “putting taxpayers’ money behind the project of a billionaire.”

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She acknowledged that blocking the arena could hurt the chances of securing Youngkin’s support for top Democratic legislative priorities like a measure establishing marijuana retail sales. But she thought the trade-off was worth it.

“I just stood firm on what I believe in my heart to be in the best interest of the Commonwealth. And that was just to say no to the Glenn Dome,” she said using a nickname she’s given the proposed arena.

Torian, who had carried one of the standalone arena bills, said he was “perhaps a little disappointed” the arena language didn’t survive, but he emphasized other provisions that did, including pay raises for teachers and other public employees and increased spending on certain government services.

Also out of the budget are Youngkin’s proposed tax cuts, he said.

Associated Press writer Denise Lavoie contributed to this report.

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Drought emergency declared for parts of Virginia; governor warns of water restrictions

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Drought emergency declared for parts of Virginia; governor warns of water restrictions


Extreme drought conditions in parts of Virginia have prompted an emergency drought warning for a wide swath of the region, including Bedford, Campbell, Charlotte, Franklin, Halifax, Henry, Mecklenburg, Patrick, Pittsylvania and Roanoke counties, along with the cities of Danville, Roanoke, Salem and Martinsville.

The governor has warned that if conditions worsen, she will activate mandatory nonessential water-use restrictions.

In Martinsville, city leaders have issued a voluntary water conservation notice and are urging residents and businesses to cut back where they can. The request comes as local businesses that rely heavily on water say the drought is already affecting day-to-day operations.

SEE ALSO: Botetourt County residents adjust daily routines as voluntary water restriction continues

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John Hughes, owner of John’s Car Wash, said the dry conditions have hit his business hard in recent weeks. “For the last 3 weeks, it’s been hitting pretty hard. We done three yesterday and haven’t done anything today with the drought and hot weather. Yeah, I’m really concerned about it,” Hughes said.

Restaurants are also feeling the strain. David Kitzmiller, an owner of Be Wiched, said water is essential for routine tasks such as washing dishes and preparing some menu items.

“We use a lot of water for washing dishes and some of our recipes if they limit us in anyway defiently can’t produce and its a scary aspect,” Kitzmiller said.

Kitzmiller added that cutting back is not always realistic for businesses that must meet sanitation needs. “Not really feasible for a business that depends solely relies on water to wash their dishes, so that can’t definitely be an impact there,” he said.

City leaders emphasized that the conservation request is voluntary for now, but they are encouraging everyone to do their part by taking shorter showers, turning off the faucet when it is not in use, washing only full loads of laundry, and limiting outdoor watering whenever possible.

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Five charged after Virginia Beach Police conduct human trafficking operation

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Five charged after Virginia Beach Police conduct human trafficking operation


VIRGINIA BEACH, Va. (WAVY) — Five people were charged after Virginia Beach Police conducted a two-day human trafficking and vice operation on July 3, according to the Virginia Beach Police Department.

The department’s Special Investigations Bureau conducted the operation, which was aimed at identifiying human trafficking victims, reducing the demand for commercial sex and targeting individuals seeking to exploit or recruit children for prostitution.

Detectives used many investigative techniques to proactively identify individuals involved in criminal activity related to prostitution, human trafficking and offenses against children. The operation was conducted in Virginia Beach, involving personnel from all of the bureau’s squads.

As a result of the operation, five people were identified and charged with offenses ranging from solicitation of prostitution to sex trafficking and crimes involving minors. Two vehicles and U.S. currency were seized during the operation. Other people were connected to victim services through Samaritan House.

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The operation led to the following people being charged:

  • Shane Carter, 28, of Norfolk, was charged with solicitation of prostitution.
  • Robert Harris, 64, of Virginia Beach, was charged with solicitation of prostitution and assault and battery.
  • Larry Pittman, 53, of Portsmouth, was charged with sex trafficking and use of electronic devices to facilitaate certain offenses involving minors.
  • Kenric Frazier, 46, of Portsmouth, was charged with sex trafficking, use of electronic devices to facilitate certain offenses involving minors and solicitation of child pornography.
  • Cameron Lewis, 24, of Norfolk, was charged with solicitation of prostitution.

Investigators also developed leads about people who are suspected of trafficking and exploiting others for commercial sex. Those are now active and ongoing investigations. There may be more charges and arrests pending further investigation and consultation with the Virginia Beach Commonwealth’s Attorney’s Office.

If you’re a human trafficking victim or know someone who is, you can report it to the National Human Trafficking Hotline at 1-888-373-7888.

Continue to check WAVY.com for updates.



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Dragas responds to accusations of having unfair advantage in quest to buy VB National

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Dragas responds to accusations of having unfair advantage in quest to buy VB National


VIRGINIA BEACH, Va. (WAVY) — Helen Dragas, CEO of Dragas Companies, said she does not feel her company had an “unfair advantage” in pursing a deal to buy Virginia Beach National Golf Club.

Rather, Dragas said her team took the initiative to put forward the “the “best competitive proposal we could.”

Next month, Virginia Beach City Council could vote to sell the 270-acre 18-hole course to Dragas, who along with Texas-based Century Golf, would redesign and refurbish the course. Dragas would then build nearly 660 housing units on the southern end of the property, and build a new childcare center.

Dragas’ proposal, titled “Princess Anne Landing,” was one of nine total groups who responded to the city’s request for proposals regarding of the future of the course.

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Still, many on both social media and in public comments have accused the longtime housing developer of having the upper hand, given that she had the city sign a non-disclosure agreement in 2024, more than a year before the city’s intentions of possibly selling the course became public.

As part of an interview Tuesday with 10 On Your Side, Dragas was asked about those accusations and other questions. Responses are edited for style and brevity purposes.

REPORTER: You’ve heard some of the criticisms … sitting through the public hearings. … How do you take it when people say that you got an unfair advantage?

DRAGAS: I say that we invested thousands of hours of hard work and due diligence watching public hearings, media council meetings, digging into those engineering studies that I referenced before that showed the deficiencies, … understanding the comprehensive plan, the Historic Overlay District, the ITA situation, all that. There’s a lot of complexity there and we invested a lot of time and energy to develop the best competitive proposal we could. We never knew we would see it, and we still don’t know if we’ll see a single cent of that investment back. And that’s competition and that’s initiative, and we live in a country that’s always rewarded initiative. And we took it. And while others might have been spending their time on other projects or other endeavors, this is what we were doing. So we didn’t receive any nonpublic information. We just did our homework and I think we tried to solve a lot of problems in one proposal: housing, homeownership, childcare, golf course, you know, redesign and refresh and reinvestment and a future tax stream for the course. So we think we come up with something that provides benefit, not just at offers, but to a lot of other constituents in the city as well. We’re really proud of it.

REPORTER: You were telling me that … long before even the auditors report, you had your eye on that that parcel and thought it would be good for houses. Correct?

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DRAGAS: Well, we always knew that there was that section that … could handle some housing, yes. And others did as well. There were other rentals. There was another unsolicited proposal or two. And then I think about half of the respondents to the proposal included housing.

Under the terms that have been negotiated between City Council and economic development staff for months in closed session, Dragas would purchase the roughly 270 acre course for $17.9 million from the city. The city will, in turn, give the $17.9 million back to Dragas, along with $1.8 million from the Virginia Beach Development Authority, to go towards an estimated $38 million golf course redevelopment.

On top of the nearly $20 million the city would give the development team for the golf course work, the city could contribute up to nearly $8 million in public infrastructure along Tournament Drive and Princess Anne Road, to include turn lanes, streetscape improvements, utility relocations, and a sewer extension.

REPORTER: Why does it need to be a public-private partnership?

DRAGAS: So right now the city has millions of dollars in deferred renovation — $7.7 million in identified stormwater deficiencies and remaining clubhouse and facilities repair. That doesn’t cover anything about renovating a 30-year-old course. And … everything needs a renovation, refurbishment at some point in its life, physical life. And so, this course needs that. There’s also public infrastructure that serves the entire area right there. So there’s some Virginia Beach Development Authority parcels that sit there and the first tee … as you probably know, is that land is going to be dedicated to the First Tee. There’s sanitary sanitary sewer infrastructure that serves all those parcels that was originally connected to be temporary, and that was almost 30 years ago. So the city has, I think, some deferred public infrastructure costs as well. What our proposal does is take the city off the hook for future maintenance liabilities. They’re actually going to come out of pocket less than they would if they just did the stormwater and the clubhouse repairs that were made, and in exchange, the city will have a $3.4 million a year tax revenue stream, a completely refreshed and refreshed renovated golf course, a badly needed child care facility and then, of course, the homes, homeownership opportunities for over 600 families.

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