Owner of Capitals and Wizards joining Virginia Gov. Youngkin at Potomac Yard event on Wednesday: Sources

ALEXANDRIA, Va. (7News) — Ted Leonsis, the majority owner of the Washington Capitals and Washington Wizards will be attending an event at Potomac Yard on Wednesday alongside Virginia Governor Glenn Youngkin, sources have told 7News.

The event is expected to start at 9 a.m. Wednesday, 7News learned. An executive at Monumental Sports and Entertainment is calling the announcement, “A framework for a partnership.” Gov. Youngkin is calling this event "a remarkable economic development project for the Commonwealth."

As of Tuesday afternoon, there are currently tents erected at the site.

On Monday, news broke that Leonsis was considering moving the Capitals and Wizards to Northern Virginia. Virginia lawmakers voted to approve a proposal designed to lure the teams across the river and into an 8 million-square-foot sports and mixed-use campus in Alexandria, Va.

RELATED | Lawmakers approve deal to bring Washington Wizards, Capitals to Virginia sports complex: Source

The vote approves a sports district that includes a new stadium both teams will use --- a 3,000-seat music and entertainment venue, a conference center, hotels, and the headquarters for Monumental Sports & Entertainment, which owns both teams plus the Washington Mystics. The Mystics and other concerts and events would remain in D.C.

The source told 7News that this vote merely moves the process along. The project still has to be approved by the full General Assembly and Alexandria City Council.

If everything goes as planned, 7News learned they could break ground in 2025 and move teams in 2028.

7News also asked the source if Monumental Sports & Entertainment had to approve the deal, but we were told Monumental Sports & Entertainment has been part of the whole process of coming up with details in this proposal.

Officials with Monumental Sports & Entertainment told 7News Leonsis considered many and every option and believes “this is the most appealing, building an expansion venue on 70 acres that allows Monumental Sports and Entertainment to grow.”

The potential sports district would be located within walking distance of the new Potomac Yard Metro station, a source confirmed.

A Virginia stadium authority would own the arena and Monumental Sports and Entertainment would enter a 40-year lease, the source said.

This stadium and mixed-use campus are expected to generate about $3.8 billion in economic benefit, compared to $800 million if the proposed site is developed as currently planned without the new stadium.

7News has reached out to Alexandria Mayor Justin Wilson, the Alexandria Economic Development Partnership, the D.C. Mayor, and the D.C. Deputy Mayor for Planning and Economic Development for comment. We have yet to receive a response.