Prince George’s County has approved $215 million in public financing toward the $1.4 billion Sphere National Harbor project, betting the landmark venue will deliver massive long-term economic benefits to Maryland.
On Tuesday (Oct. 27), the Prince George’s County Council voted unanimously to approve the issuance of up to $215 million in special obligation bonds to support the development of Sphere National Harbor.
Prince George’s County is providing roughly $130 million in site and infrastructure support through a Tax Increment Financing (TIF) arrangement, alongside a $40 million county-owned parking garage on the 14-acre project site. Sphere Entertainment will repay the public funds using future property, sales, hotel occupancy, and amusement tax revenues generated by the venue.
Today marks a turning point for the economic future of our county,” said County Executive Aisha Braveboy. “Today, Prince George’s County enters the global stage and redefines itself as a destination for investment, entertainment, technology, and innovation.“
Sphere National Harbor
Sphere Entertainment is controlled by New York billionaire James Dolan, whose sports and entertainment empire includes Madison Square Garden, Radio City Music Hall, the New York Knicks, and the New York Rangers.
While some local residents and labor groups initially voiced opposition to public support for Dolan’s project, Braveboy and the County Council insist the public backing is a sound investment.
“We are really talking about tremendous revenues that will be coming to Prince George’s County and the state of Maryland,” Braveboy noted, calling the TIF arrangement “a smart way to do public investment.”
The government leaders cite an economic impact study completed by Ernst & Young that concluded the county will receive $63 million a year in local tax revenue generated by Sphere National Harbor. Construction is estimated to provide $1.6 billion in economic benefits and 3,350 full- and part-time jobs.
Once operational, Sphere National Harbor is expected to sustain an annual economic impact of $1.3 billion while supporting roughly 7,100 direct and indirect jobs.
Venue Expectations & Gaming Synergy
The planned 6,000-seat domed venue will feature high-definition LED displays wrapping its exterior and interior. While scaled smaller than Las Vegas’s 17,600-seat flagship Sphere, the Maryland attraction is expected to draw massive crowds.
EY estimates more than two million visitors will attend events at Sphere National Harbor annually, with roughly half staying overnight in the area. The study projects overnight visitors will spend an average of $820 across lodging, dining, entertainment, transportation, and gambling.
That influx stands to directly benefit neighboring MGM National Harbor, located just steps away, whose 308 hotel rooms, 2,200 slot machines, and 215 table games are primed to capture surrounding spend.
Source link
