Looking to fund $50 million in renovations to the Verizon Center without opening up his checkbook, Washington Wizards owner Abe Pollin did what any sensible man would do: he turned to the D.C. Council. Three council members came rushing to his aid, introducing a bill to fund the makeover by raising taxes from 5.75 percent to 10 percent on tickets and goods sold at the Verizon Center, which plays host to the Wizards, Capitals, Hoyas, Mystics and numerous concerts. Though the bill itself is good, it demonstrates the backward priorities of the City Council—its energies should be directed to needier areas of the District.
The bill’s greatest strength is that it pays for itself. The $50 million will be raised through revenue bonds issued by the city, which will be financed through the increased tax. And though the renovations are costing the city nothing, supporters claim they’ll significantly improve the venue. “It will attract world class events such as the NBA All-Star Game, the NCAA Final Four and concerts,” Sean Metcalf, Communications Director for Councilmember Jack Evans (D-Ward 2), a co-sponsor of the legislation.
Pollin deserves credit for spending $220 million of his own money to finance the Verizon (then MCI) Center when the City declined to help. He has created jobs both in the arena and around it and has helped revitalize Chinatown. However, the city needs to question whether it is prudent to use a government function, taxation, to support a private company.
What’s more troubling is that the bill gives the city its own luxury suite, complete with 24 seats, a private bathroom and an unobstructed floor view, according to the Washington Post. This extravagance raises questions about both the means by which Pollin won the approval of the council members behind the bill and the motives of the council members.
The biggest flaw with the bill is that, although it’s not sucking up the city’s financial resources, it is diverting the Council’s attention away from more pressing priorities. Chinatown is highly developed compared to other areas of the city, especially Southeast. The Verizon Center itself is the ninth-ranked venue in the world, according to the Post, so renovations are far from urgent. We question how much added revenue the makeover would create for the Center and its teams. The City should invest in projects in underdeveloped sections of the city, where it will get a higher social return. The Council members may not be rewarded with a luxury box for focusing elsewhere, but no one said doing the right thing was going to be easy.
