Prince George’s Council approves financing, community impact fund for Sphere entertainment venue

The Prince George’s County Council has approved financing for the proposed Sphere entertainment venue at National Harbor, advancing the project after months of debate over public investment, worker protections, and benefits for surrounding communities.

The council voted 8-0 on Tuesday to authorize up to $215 million in special obligation bonds to help finance construction-related costs for the 6,000-seat venue and refinance existing National Harbor debt. Of the bond proceeds, $130 million would help finance the construction of the Sphere, a large globe theater that features immersive video and music programs. The project will cost $1.4 billion.

At a press conference after the vote, County Executive Aisha Braveboy said the Sphere could strengthen Prince George’s County’s tax base and attract additional investment, as it grapples with the closure of Six Flags and the Washington Commanders’ planned departure from Landover.

“The decision to go after Sphere, to work to bring it to Prince George’s County, will more than triple in tax revenue [what] we are losing with the Commanders leaving in a few years and the closure of Six Flags. This is amazing,” Braveboy said.

The county would repay the so-called tax increment financing bonds using designated National Harbor tax revenues, including property tax revenue generated by growth in assessed values.

Paul Schwalb, executive secretary-treasurer of UNITE HERE Local 25, which represents hotel, restaurant and casino workers, welcomed “labor peace” language supporting hospitality and services workers’ ability to organize at the Sphere. A labor peace agreement allows workers to organize without employer interference in exchange for unions agreeing not to strike or picket.

However, the union remained “deeply disappointed by the lack of a Project Labor Agreement to protect construction jobs,” Schwalb said in a statement. “Publicly financed projects have to protect all workers.”

Council members also approved a separate community impact fund to address neighborhood concerns about traffic and other issues related to the Sphere’s construction and operation. The fund would receive 15% of qualifying county revenue generated by Sphere, drawn from admissions and amusement taxes and a share of the real estate taxes not already pledged for the tax increment bonds.

The council resolution didn’t specify the size of the community impact fund, and messages to county staff were not immediately returned. Half of the money would support community programs and services, and the other half would fund infrastructure and capital improvements. Neighborhoods within six miles of the venue would qualify for the funding.

In the project’s tax increment financing proposal, Sphere Entertainment Co. argued that county assistance was necessary to secure the venue’s location against competing jurisdictions. Council members agreed to send a letter to county executive Braveboy setting goals for small and county-based minority businesses in the Sphere construction.

The plan calls for Sphere Entertainment Co. to direct at least 50% of eligible construction spending to county-based small businesses or locally owned and operated businesses. It also sets best-effort goals to direct 40% of that spending to county-based minority businesses and 45% of eligible construction work hours to county residents.

Some residents opposed the project. Christopher Goins, a county resident, criticized an economic analysis report by the accounting firm Ernst & Young that touted construction employment.

“Before the council votes to create this future tax burden, we need to go behind the sales pitch and examine the balance sheet,” Goins said.

Dan Smith, a Cheverly resident, questioned why the council would prioritize National Harbor over unfinished infrastructure elsewhere in the county.

“National Harbor is already a successful regional destination, built with substantial public support,” Smith said.

Councilmember Jolene Ivey has supported the Sphere as a way to diversify the county’s tax base and reduce its reliance on residential property taxes. In an interview after Tuesday’s vote, Ivey pointed to successful technology businesses around the University of Maryland as another opportunity for diversification.

“Diversification is helpful because if one area suffers, you’re not completely dependent on it,” Ivey said. “You can still bring in tax dollars from someplace else. It’s like diversifying your portfolio as a household.

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