A coalition of mayors from the Portland metropolitan area has publicly urged city leaders to finalize an agreement for the renovation of the Moda Center. The mayors emphasize that the outcome of these negotiations will impact communities throughout the region, extending beyond Portland’s city limits.
In a letter dated July 15, addressed to Governor Tina Kotek, Portland Mayor Keith Wilson, and Multnomah County Chair Jessica Vega Pederson, the Metropolitan Mayors’ Consortium highlighted the arena’s regional significance. The consortium, representing 24 cities, stated that the Moda Center serves residents across the metropolitan area and generates economic activity that benefits a wider geographic area. The letter noted that while teams like the Trail Blazers and Fire wear “Portland” on their jerseys, they are considered home teams for the entire region, with players and staff residing in various surrounding communities such as West Linn, Wilsonville, and Lake Oswego.
Negotiations and Funding Details
The mayors’ letter comes at a critical juncture in the ongoing negotiations. On July 16, Portland issued its initial draft term sheet to Trail Blazers ownership, initiating a new phase of discussions regarding a long-term lease and the public funding package for the arena’s renovation. The City Council is anticipated to vote on this term sheet by August 12.
Significant financial commitments have already been made towards the project. The Oregon Legislature has approved $365 million, and Multnomah County has pledged an additional $100 million. Portland’s estimated contribution of approximately $120 million remains under negotiation as city officials work to secure taxpayer protections, finalize lease terms, and address other provisions within the proposed agreement.
The consortium argues that the arena is a regional asset that supports jobs, tourism, and various businesses across the metro area. They point to spending at hotels, restaurants, and other establishments before and after events, underscoring the facility’s role in bolstering the region’s economy and workforce.
Divisions and Disagreements
Despite the regional support, significant differences in opinion have emerged between the Trail Blazers and the city of Portland. A team source indicated that the two parties are “very far apart” in their discussions. The city’s term sheet, sent on Friday, outlines a 20-year lease agreement that would provide $600 million in public funds for renovations. However, it also requests the Trail Blazers to pay an annual $3 million property tax offset, which would increase over time, and mandates the hiring of union workers along with caps on project-cost overruns.
A team source described the term sheet as a “non-starter,” suggesting that many of its provisions are unlikely to be accepted by the team. The Trail Blazers’ board of directors is scheduled to meet to discuss the term sheet and determine their next steps. The city’s vote on the funding is set for August 12, with a critical deadline of December 31 for the $365 million in state funding to remain available.
Both the Trail Blazers and city politicians have voiced concerns about the other party’s conduct. Some city council members are reportedly upset, feeling that the team has not been transparent about how public funds would be utilized. Councilor Mitch Green stated that he believes the Trail Blazers have “been behaving poorly,” suggesting they assumed the deal was finalized after securing state funding.
The Trail Blazers, in turn, have expressed reluctance to share detailed renovation plans, citing that many are still “ideas or concepts.” They also noted offense at a threat of legal action from councilor Steve Novick in June regarding the maintenance of the Moda Center as a first-class venue. A team source indicated they are hesitant to respond to the term sheet until this threat is removed.
Future of the Arena and Team
The future of the Trail Blazers in Portland could be affected by these ongoing negotiations, as their current lease concludes in 2030. While there has been unspoken tension regarding whether new owner Tom Dundon might consider relocating the team, two high-ranking sources within the Blazers stated that relocation has never been mentioned by Dundon. These sources affirmed the team’s desire to remain in Portland.
Councilor Green, representing Portland’s fourth district, emphasized the need for transparency, stating that he and other council members require a clear understanding of the scope and scale of what the public money will fund. He stressed that the city council is not a “rubber-stamp council” and expects a good-faith effort from the team.
In March, the Blazers believed they had reached an agreement with the city after securing the state’s $365 million commitment, which was contingent on Portland providing $120 million and Multnomah County adding $88 million. A second source within the Blazers expressed confusion over the shift in negotiations, suggesting that the city is now introducing demands that significantly alter the original understanding.
Elliott Kozuch, a spokesman for the city administrator, confirmed that while there was momentum towards an agreement in March, it was always understood that formal approval from the City Council and County Commission would be necessary. Kozuch added that while some high-level concepts for upgrades have been shared online, the city requires a formal design review and detailed project plan for a complete understanding of the proposed improvements.
The Trail Blazers are reportedly examining other recent arena deals in cities like Oklahoma City and Utah, and a team source suggested that the city’s delays have prompted them to re-evaluate what constitutes a market deal for a new agreement in Portland, potentially even including a new arena. Councilor Green, however, remains unmoved by the prospect of relocation, suggesting that Dundon‘s decisions are primarily driven by profit. He indicated that if Dundon were to cover the $120 million, a resolution could be reached swiftly. Negotiations over Portland’s portion of the funding continue as city officials aim to approve a term sheet in August, followed by the negotiation of a final lease later this year.
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Source: katu.com
Mason Reed
Sports reporter covering football, basketball and international competitions.