Prince George’s County votes to approve Sphere site at National Harbor
The Prince George’s County Council on Tuesday gave final approval to a deal committing Maryland County to funding about $200 million to help bring Sphere to National Harbor.
On the final day of the council’s legislative session, the 8-0 vote was rather disappointing, with the real drama unfolding behind the scenes in the weeks leading up to Tuesday’s meeting.
County Executive Aisha Braveboy held a news conference to celebrate the passage immediately after the vote.
“Today, Prince George’s County is entering the global stage and redefining itself as a destination for investment, entertainment, technology and innovation,” Braveboy said.
The board authorized up to $215 million in special bonds to help build the 6,000-seat entertainment venue and surrounding complex. The Sphere Entertainment Co. would gradually repay those bonds to the county.
“This project represents a $1.3 billion economic impact for Prince George’s County and a $1.5 billion impact for the state of Maryland,” she said. “This project is expected to generate $63 million per year in property taxes and sales and entertainment taxes alone. »
It also provides a boost to a county that has been stung in recent years by Washington commanders’ plans to return to Washington, D.C. and the closing of the Six Flags amusement park in Largo. Braveboy said the new entertainment venue will bring in more than these entities ever have.
“The decision to take on Sphere – to work to bring it to Prince George’s County – will more than triple in tax revenue what we lose with Commanders leaving in a few years and Six Flags closing,” Braveboy said.
More than that, she said it would help the reputation of a county that is not known for being business-friendly, even though it took Braveboy and the governor’s office to push the board to get the “yes” vote that took place Tuesday. Initially, a majority of the council was determined to require a labor agreement on the project guaranteeing union labor as a condition of approval — a red line Sphere’s owners would not cross. This almost killed the deal.
Ultimately, agreements were reached between Sphere and labor groups, although they were not as strong as some board members initially hoped. Earlier this month, the council approved a labor peace agreement, which allows labor groups to organize Sphere workers once it opens, but leaves out protections for construction workers.
A community benefits fund was also created.
“I absolutely worked with the council to make sure they understood how important it was that we send a message to our business community and our residents that we understand the importance of improving our business tax base and creating an environment where … good investments are welcome, so we can have a better quality of development here in the county,” Braveboy said.
The Maryland location will be the second massive light orb operated by Sphere Entertainment Co., which is located behind the Las Vegas entertainment arena.
“For far too long we have focused our attention on our residential tax base, which has placed a burden on our property owners, and the only way to begin to move away from that is to have a strong commercial tax base,” Braveboy said.
“It also sends a message to the rest of the investment world that Prince George’s County is a place where world-class investment and high-quality development can take place. So we look forward to setting the tone for future development as we look to grow Six Flags, while we continue to work with Konterra on this and other areas of the county that will be developed.”
Under the terms of the agreement, the county will build a $40 million parking garage and provide $130 million in bond financing, which will then be repaid through tax revenue generated by the facility once built. The state also invested more than $13 million.
The next step is scheduling a groundbreaking ceremony for the $1.4 billion Sphere. A county spokesperson said only that he hoped it would happen soon. When the deal was announced, the hope was that the venue would be open for performances in early 2030.
WTOP’s Jessica Kronzer and Kyle Cooper contributed to this report.
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