Opinion | Virginia might get the Capitols and Wizards. DC needs to be prepared.

We want the team to stay. Our current location is in the heart of the neighborhood, just a few blocks from the White House. The arena is central to the downtown district of residents, offices, bars, and restaurants along Northwest 7th Avenue, and sits atop a subway hub that provides easy access for residents from all corners of the area. I am. Losing these teams would be a blow to Washington’s hollowing-out downtown. Ideally, team owner Ted Leonsis would reconsider the city’s generous final offer to stay in the downtown area where he contributed so much success for so many years.

But Leonsis and his company, Monumental Sports & Entertainment, appear ready to leave. Unlike the Potomac Yard space, the team’s current arena leaves little room for expansion. As Washington, D.C., struggles to combat a spike in violent crime, the city has done too little to address long-standing complaints about nuisances and decreased safety near the arena. More importantly, after Mr. Leonsis indicated he was serious about relocating, the city failed to get him the best offer in time. If Mayor Muriel E. Bowser (D) had submitted the final proposal (an $800 million arena renovation, with the city paying $500 million) months earlier, Leonsis might have accepted it. . Meanwhile, Virginia Gov. Glenn Youngkin (R) has asked Leonsis to build a huge new arena surrounded by the team’s practice facility and offices for Leonsis’s company, the kind of things that would be difficult to build in downtown Washington. proposed development for $2 billion. , hotels, additional concert venues, the Virginia Tech campus, housing, shops, and restaurants.

For Leonsis to consider staying, D.C. will need to show progress in fighting crime and a vision for regional revitalization. The iconic Gallery Place mall and office complex adjacent to the arena is in the midst of an exodus of tenants and is looking for a new owner. Bowser deserves his last pitch for the team. Washington needs them more than Virginia, and city officials shouldn’t give up until a relocation deal is finalized. Even if he fails, Leonsis could do some of the things that make D.C. a more attractive place to do business and make it a better place for other companies to do business.

Our Take: DC will lose more than the Capitals and Wizards if they don’t act quickly

Still, Leonsis is probably going to move the team. Youngkin and other Virginia leaders will no doubt be happy, but there are risks on their side of the Potomac River. The new arena project has a hefty price tag of $2 billion. Mr. Leonsis will pay $400 million upfront to rent the arena and then pay another $400 million over time. The City of Alexandria will invest approximately $100 million. The remaining approximately $1.1 billion will come from bonds that will be repaid by taxes collected on the 12-acre site. In other words, all sales tax, parking revenue, income tax, corporate tax, and airline ticket tax will be used to repay the national debt.

Youngkin says Virginia taxpayer dollars will not fund the project. Even a modest audience could generate enough revenue to pay off the bond. But if those crowds don’t materialize, Virginia taxpayers could be on the hook for up to $577 million as the state backstops some of the loans. In the worst-case scenario, Alexandria residents could be liable for an additional $577 million. Virginia lawmakers should ask about a scenario in which the pandemic returns and 220 annual events do not occur. State leaders also must make good on Mr. Leonsis’ ironclad promise to keep the team at the Potomac Yard site through 2064 or pay off the loan balance. Many cities, including St. Louis and Oakland, are stuck paying their bills after their sports teams leave.

Transportation is the biggest drawback of the Virginia site. The arena can accommodate 20,000 fans. However, the current Potomac Yard subway station is small. The highways around Potomac Yard are already congested and there are no Amtrak or Virginia Railroad Express stops. Youngkin’s team says the state will invest $200 million in aid, but did not say where that money would come from. Youngkin also hasn’t committed to further funding to keep Metro going beyond 2025. The state Legislature needs to make sure Metro enhancements are part of the arena’s funding package. Also, who will pay for additional security in the area and how will they ensure that all funds and contracts handled by the Virginia Department of Sports and Entertainment, which will oversee the new arena district, are covered. It’s still unclear. A lack of transparency with a similar authority in Chicago caused major problems.

While Virginia sorts out these important details, DC needs to prepare for the world after the Wizards. Ms. Bowser has created a task force to generate new ideas for the Gallery Place Chinatown district. There are early talks of building concert venues and welcoming public spaces in the area. (Cleveland’s downtown public plaza is a good model, with cafes, splash pads for kids, and relaxing green space.) If the city doesn’t have to give Leonsis $500 million, it could use that money elsewhere. It will be able to meet your needs.

However, no amount of money can compensate for failing to get the basics right: ensuring public safety and fostering a business-friendly environment. DC can no longer expect people and businesses to want to locate in the city center. Cities and their leaders must compete for them. Even if Washington loses this round, they can bounce back for the next round.