Prince George’s Authorizes $215M Public Financing Package for $1.4B Sphere National Harbor

Prince George’s County in Maryland has committed $215 million to support the construction of the $1.4 billion Sphere National Harbor, banking on strong long-term economic returns in exchange for the public financing. A rendering of Sphere National Harbor in Oxon Hill, Md. Sphere Entertainment is calling the proposed $1.4 billion venue a “mini Sphere” compared with the Las Vegas counterpart. (Image: Sphere Entertainment) 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 for Sphere Entertainment. Prince George’s County is providing roughly $130 million in site and infrastructure support through a Tax Increment Financing (TIF) arrangement. The owners of the immersive entertainment spectacle next to MGM National Harbor will pay back the public funds with future property, sales, hotel occupancy, and amusement tax revenues. Today marks a turning point for the economic future of our county. Today, Prince George’s County enters the global stage and redefines itself as a destination for investment, entertainment, technology, and innovation,” said County Executive Aisha Braveboy. The financing plan additionally includes the construction of a $40 million county-owned parking garage on the 14-acre project site. Sphere National Harbor Sphere Entertainment is controlled by New York billionaire James Dolan, whose entertainment and sports empire includes Madison Square Garden, Radio City Music Hall, the New York Knicks, and the New York Rangers. While some in Prince George’s County oppose the county helping Dolan construct a Sphere, Braveboy and the County Council say the public support is a sound bet. “We are really talking about tremendous revenues that will be coming to Prince George’s County and the state of Maryland,” Braveboy said. 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 completed, Sphere National Harbor is projected to sustain a $1.3 billion annual economic impact and directly and indirectly support approximately 7,100 full- and part-time positions in Prince George’s County. Braveboy says the TIF and county support is “a smart way to do public investment.” Sphere Expectations Sphere National Harbor is a planned 6,000-seat domed venue covered inside and out with high-definition LED panels. The structure would be considerably smaller than the Sphere in Las Vegas, which has capacity for 17,600 seated patrons. EY estimates that more than two million people will attend Sphere National Harbor events each year, with around half expected to stay overnight in the National Harbor area. EY believes the average overnight visitor will spend $820 on entertainment, lodging, food and beverage, transportation, and gambling. MGM National Harbor stands to benefit, as the resort’s 308 hotel rooms and casino floor with 2,200 slot machines and 215 table games are just steps from where Sphere will stand. The post Prince George’s Authorizes $215M Public Financing Package for $1.4B Sphere National Harbor appeared first on Casino.org.