The D.C. Council will vote on a half-billion dollars to rebuild Capital One Arena and then Mayor Muriel Bowser will present her budget, which is expected to include tax increases. News4’s Mark Segraves has a preview.
This will be a big week for anyone who spends money or pays taxes in D.C.
The D.C. Council will vote on Tuesday on a half-billion dollars to rebuild Capital One Arena as part of the deal to keep the Capitals and Wizards in the city.
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WATCH HEREThen on Wednesday, Mayor Muriel Bowser will present her budget, which is expected to include tax increases and deep cuts to government programs.
The D.C. government faces a budget gap of nearly $1 billion. Bowser has said all options are on the table, including possible tax increases.
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SIGN UP The chair of the D.C. Council, Phil Mendelson, told reporters on Monday that he expects the mayor to propose a tax increase to help pay for additional funding for Metro.
“My position generally is that I don’t like to see tax increases. I have said over and over again that I do expect with this budget there will be a tax increase. I think it will be related to WMATA,” he said.
Mendelson was asked specifically which tax increase he would support or oppose. He said various types have pros and cons but that “the sharks are circling for tax increases.”
The council chair also was asked about the deal to keep the Capitals and Wizards in D.C. The council is expected to approve a $515 million deal on Tuesday. The funds would help pay for renovations to the arena.
The tentative agreement signed by the mayor and team owner Ted Leonsis would exempt Monumental Sports from paying any new tax that benefits another professional sports franchise.
Mendelson said he would want to see the exact language in the term sheet.
Other tentative provisions in the term sheet between DC and Monumental Sports include:
- allowing the Mystics to play four regular season games plus playoffs at Capital One Arena
- allowing Monumental to expand outdoor signage around the arena
- giving Monumental full control of the Entertainment & Sports Arena in Southeast
Mendelson told reporters he has not asked to see the term sheet, which has not been shared with the council ahead of the vote.
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“What was agreed to last week was initialed and signed by the mayor and by Mr. Leonsis, and it is a commitment to go forward with negotiating documents consistent with the term sheet. But it's not a contract,” he said.
The term sheet signed by Bowser and Leonsis is non-binding and is subject to change, which also seems to relax normal requirements for Monumental to hire D.C. residents, as well as local, small and disadvantaged businesses to compete improvements to the arena. Rather than making those hiring goals a requirement, the term sheet says Monumental will make “its best efforts to achieve these hiring goals.”
