Prince George’s County approves up to $215m for Maryland Sphere project

In Maryland, the Prince George's County Council gave its unanimous backing to as much as $215 million in special obligation bonds for Sphere National Harbor, per the county's approval. The domed venue as proposed would hold 6,000 seats, and the overall project carries a value of $1.4 billion.

The county's support package, delivered as a Tax Increment Financing (TIF) arrangement, comes to roughly $130 million for site and infrastructure work. That total takes in a parking garage owned by the county and valued at $40 million, situated on the 14-acre site where the development is planned. Repayment of the public financing falls to Sphere Entertainment, which will draw on the property, sales, hotel occupancy and amusement tax revenues the venue produces in the years ahead.

The venue would feature high-definition LED displays on its exterior and interior, as does the 17,600-seat Sphere in Las Vegas. An Ernst & Young study cited in the report estimated that Sphere National Harbor could welcome more than two million visitors a year, with about half expected to stay overnight locally, spending an average of $820 on accommodation, dining, entertainment, transportation and gambling.

Earlier in the summer, the Federal Aviation Administration raised concerns that the illuminated building might interfere with flight operations at the nearby Ronald Reagan Washington National Airport and some of its flight paths, according to the report.

Sphere Entertainment is controlled by New York billionaire James Dolan, whose holdings include Madison Square Garden, Radio City Music Hall, the New York Knicks and the New York Rangers. Some residents and labour groups initially questioned the use of public funds for the project, the report said.

According to County Executive Aisha Braveboy and the County Council, the region stands to gain significant economic benefits from the investment. Drawing on the Ernst & Young study, county officials expect the venue to bring in $63 million in local tax revenue each year.

Projections put the economic benefits of construction at $1.6 billion, with approximately 3,350 full- and part-time jobs created during that phase. In operation, the venue is projected to deliver an annual economic impact of $1.3 billion and to support about 7,100 direct and indirect jobs.