WASHINGTON, DC—Construction will begin next year on a $55-millon joint venture project that when completed will serve as the practice facility for the NBA's Washington Wizards, home court for the WNBA's Washington Mystics, as well as an entertainment venue in the District.

During construction on the 118,000-square foot, 5,000-seat facility, the project will create more than 600 construction jobs. The arena is to be developed on the grounds of the former St. Elizabeths hospital. The facility located near the Congress Heights Metro station will also result in 300 permanent jobs for both the arena and Phase I infrastructure of St Elizabeths East, with priority given to Ward 8 residents.

Funding over the course of a 19-year lease, the project includes a District investment of approximately $23 million, up to $5 million from Monumental Sports & Entertainment towards construction, with an additional $10 million for St. E's redevelopment and community philanthropic investments and $27 million by Events DC.

Events DC will be responsible for the construction of the new facility and will be the operator of the facility upon completion. Construction is scheduled to begin in 2016 with completion in fall of 2018. District officials along with executives from Events DC and Monument Sports & Entertainment announced plans for the new arena project at a press conference on Wednesday, Sept. 16. 

Monumental Sports & Entertainment owns and operates the Washington Capitals (NHL), Washington Wizards (NBA), Washington Mystics (WNBA) and Verizon Center in downtown Washington, DC.

“Today marks an important day for the District of Columbia and the people of Ward 8,” says DC Mayor Muriel Bowser. “With this new development, we are driving private investment to the St. Elizabeths East campus, boosting the local economy, creating hundreds of jobs, and putting more District residents on their pathways to the middle class. This is a huge win for the District and yet another sign that Washington, DC is a city on the move.”

In addition to serving as the practice facility for the Washington Wizards and home court to the Washington Mystics, the new arena is projected to host more than 90 non-basketball related events per year.

”Events DC is proud to partner with Mayor Bowser and Monumental Sports to bring a new multi-use facility to a developing neighborhood in the District,” states Greg O'Dell, president and CEO of Events DC. “This new entertainment and sports arena will aid us in attracting a vast amount of new programming that will not only help transform this community but also drive significant economic benefit for the District.”

Officials involved in the venture estimate the arena will produce $90 million in new tax revenues over 20 years.