LEESBURG, Va. (WDVM) — The Loudoun County Board of Supervisors has agreed to defer the DC Management Company’s rent payments this year.
In August of 2018, the county went into a $15 million lease agreement with the management company to build a Loudoun United training center, headquarters facility, and artificial and grass fields. The lease requires DC Management Company to pay rent over 30 years to make up for the cost of the stadium.
The company’s first rent payment, due on November 1, 2019, was made on time, but it was unable to make its May 1, 2020 payment. The company told Loudoun County it was still working to establish the team’s fan base; instead of spending money on marketing, the 2019 season revenue was spent on stadium construction. COVID-19 has significantly disrupted the team’s season and its ability to make rent this year. Deferring its rent payments will allow the DC Management Company to keep its employees on the payroll.
The proposal passed 6-2. The county will not extend DC Management Company’s payment plan; instead it has formed a gradual repayment plan and restructured the team’s payment schedule over a six-year period, with lower interest in the first three and a balance spread evenly over the last three years. The county has deferred a total of $621,232. It has also taken into account $2 million the company owes in debt to the county.
Chair Phyllis Randall and Leesburg District Supervisor Kristen Umstattd voted against the proposal. “This is a fairly well connected entity that has access to financial support to people with a lot more money than our constituents have; a lot more money than our businesses have,” Umstattd said.
Dulles Supervisor Matthew Letourneau was in strong support of the proposal, especially since it wouldn’t have a financial impact on the county. “The facility’s closed. Parks, Recreation and Community Services has closed every facility in the county and they’re going to remain closed even in Phase 1, by the way, once we get there, per the standards that the state has set forth,” said Letourneau. “Loudoun United is currently locked out of its facility. So to me the right thing to do is not expect the tenant to pay when they’re literally locked out of the facility by their landlord.”
The team had an underwhelming first season in 2019, but told the county that the financial help will increase the team’s ability to make rent payments once games can resume.
MORE VIRGINIA NEWS ON WDVM
- Virginia DMV sees spike in unbelted fatalities, speed-related crashes in 2020
- A two-week shut down is a possible option in Virginia to stunt COVID-19 spread after Thanksgiving
- The Trails at the Museum of the Shenandoah Valley set to open
- Marymount University first in state to be designated as Hispanic-serving
- Man who coughed on protestors charged with simple assault