Portland leaders weigh Moda Center funding amid Trail Blazers lease uncertainty
City and county officials in Portland are scheduled to discuss potential public funding for Moda Center renovations this week. This comes as the long-term presence of the Trail Blazers in Portland faces uncertainty.
A draft term sheet for a 20-year lease has been sent to the Trail Blazers by the city. This draft includes a proposed public investment of $573 million for renovations to the Moda Center. In return, the team would be required to remain in Portland for at least 20 years and make an annual payment of $3 million from Rip City Management, among other stipulations.
However, sources within the Trail Blazers organization have reportedly called the initial draft a “non-starter.” One team source indicated that the team and the city are “very far apart” on an agreement. The team’s board of directors is set to address the term sheet to determine their next steps.
City and Team Disagreements
The city’s proposal also asks the Trail Blazers to pay $3 million annually for a property tax offset, which would increase over time. Additionally, the deal requires the team to hire union workers and includes caps on project-cost overruns. The city is scheduled to vote on the funding on August 12.
Councilor Mitch Green has expressed opposition to the city’s current draft, stating it was rushed. Green believes the city needs clearer answers before committing significant public funds, especially given current budget constraints and competing priorities such as visible homelessness and road maintenance. He emphasized the need for transparency regarding how public funds would be utilized.
Some city council members are reportedly upset, feeling that the Trail Blazers have not been transparent about the spending of public funds. Green stated that the council is not a “rubber-stamp council” and requires a clear scope and scale of what the money would be used for.
The Trail Blazers’ lease is set to expire in 2030. While new owner Tom Dundon has not explicitly mentioned relocating the team, the unspoken tension surrounding the team’s future remains. Team sources have stated that they do not wish to move and want to remain in Portland.
The Trail Blazers’ reluctance to share renovation plans is reportedly due to two main reasons. Firstly, most of their renovation plans are still in the conceptual stage. Secondly, they were reportedly offended by a threat from councilor Steve Novick in June to sue them for not maintaining the Moda Center as a first-class venue.
One Blazers source indicated that they do not want to respond to the term sheet until the threat of a lawsuit is removed. Another source mentioned that they are hesitant to share detailed plans until assured that the information will not be used in a legal action.
Renovation Concepts and Negotiations
Among the renovation concepts being considered by the Trail Blazers are a new atrium entrance on the north side of the arena to improve traffic flow. There are also plans to add kitchens on all three levels to enhance the fan concession experience, as the arena currently operates with only one main kitchen. Other concepts include eliminating some 300-level seating to build a bar and updating club-level seating.
In March, the Trail Blazers believed they had an agreement with the city after securing a $365 million commitment from the state for Moda Center renovations. This state funding is contingent on the city of Portland releasing $120 million and Multnomah County contributing $88 million. The team claims a handshake agreement was made in March with Mayor Keith Wilson, the city, and the county, and they are reportedly confused by the subsequent shift in negotiations.
Elliott Kozuch, a spokesman for the city administrator, confirmed that there was momentum toward an agreement in March but clarified that City Council and County Commission approval was always required to formalize local government commitments. Kozuch also stated that while the city administrator’s office has seen some high-level concepts shared online, a formal design review or detailed project plan has not been received.
The city’s delay has reportedly prompted the Trail Blazers to examine other recent arena deals in cities like Oklahoma City and Utah. A Blazers source suggested this has given them time to study market deals, implying that the initial $600 million deal discussed six months prior was below market value.
Councilor Green remains unmoved by any potential threat of Dundon leaving Portland, suggesting that Dundon’s decisions are primarily based on increasing profit. Green stated that if Dundon were to cover the $120 million requested from the city, an agreement could likely be reached quickly. On Thursday, Multnomah County Commissioners are scheduled to hold a meeting regarding the Moda Center.
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Source: kptv.com
