The NFL’s Washington Commanders are another step closer to building a new, $3.65-billion, state-of-the-art stadium in the heart of the old section of the District of Columbia near Kingman Lake.
DC council voted recently to advance the Robert F. Kennedy (RFK )Campus Redevelopment Act to a vote on Sept. 17, despite an analysis that raises red flags about financial and environmental risks, challenges that could be posed by construction delays, and the impact of the project on traffic congestion.
The 20-page analysis, prepared by the Robert Bobb Group, a Washington-based national consulting firm, also highlighted concerns about the lack of a comprehensive public safety plan and uncertainty about who will be responsible for maintaining the 180-acre parcel of property and stadium.
The report benchmarks the deal against similar projects, evaluates the proposed Memorandum of Understanding terms, and advises on ways to strengthen the deal for taxpayers.
DC council must now weigh the cost against the economic development potential and public space activation the development will bring to Washington.
The analysis proposed a series of mitigation measures and concluded with the right oversight and alignment the project can be delivered without compromising financial stewardship or public trust.
“The RFK development is a unique opportunity to create a transformational impact for the District of Columbia; however, it will also require many specialty skills and functions that do not typically exist within city government to negotiate the most favorable deal for district residents,” Robert Bobb, president and CEO of the company, wrote in a letter to the district chairman.
The project would catalyze a privately financed entertainment district with 5,000 to 6,000 housing units, retail and green space aimed at creating a major architectural landmark and community hub. The venue would be a covered-roof bowl with a capacity of 65,000 seats.
The stadium will be erected at the site of the RFK Stadium where the Commanders played their home games between 1961 and 1996 as the Redskins before moving to Northwest Stadium in Landover, Maryland. RFK Stadium is presently being demolished by Smoot Construction.
The new venue, to be located on the Monumental Axis, will be an important architectural component.
The Commanders are covering roughly $2.5 billion of the total cost, including the surrounding commercial development. The district will provide the remainder, a combined $1.15 billion.
With hurdles still in the way, though, there is work to be done. The analysis outlines a number of key recommendations.
“The proposed development project faces several notable risks, each accompanied by recommended mitigation strategies,” the authors write. “In terms of maintenance and operations, there is uncertainty about who will be responsible for maintaining the RFK parcel and stadium.”
To address the problem, the analysis suggests a cap be set on the amount of maintenance funds that can be drawn from a reinvestment fund and ensure the team covers any costs beyond the limit.
There are also worries a decline in sports facility fee revenue could make it more difficult to repay bonds and reduce funds available to the district, so the recommendation by the authors is to structure bonds with a financial cushion that can absorb drops in revenue by the stadium.
The authors note if the stadium opening is delayed it could also reduce tax revenue which would impact repayment structures. With traffic congestion and parking flagged as an issue, it’s recommended a traffic mitigation strategy be developed in collaboration with other stakeholders.
With the water table close to the Anacostia River, the analysis says stormwater management measures need to be put in place. To address safety, the authors suggest a plan be drafted and funding included in a Community Benefits Agreement to ensure requirements are met.
“The proposed stadium deal is not inherently flawed, but it is incompletely structured for a project of this scale, public profile and timeline,” the authors state, noting DC council now has a “unique window” to embed guardrails that protect the district from infrastructure cost overruns and hold all parties accountable to a realistic and fair delivery timeline.
According to the report, to meet a 2030 opening, horizontal work must start in 2026 – which means permitting and funding most be in place within the next 18 months, along with a timeline that will require high-level co-ordination across departments and permitting bodies, compounded by the need to procure materials and labour in a tight construction market.
A separate economic analysis by the Office of the Budget Director found the stadium alone will generate roughly $1.3 billion over a 30-year period from ticket sales, taxes on food and merchandize and hotel taxes. The mixed-use element of the project would likely add another $4.2 billion over three decades.
The stadium and associated mixed-use development could generate about $64 million a year in 2031, growing to $276 million annually by 2037, and more than $2 billion annually by 2060.
