Portland City Council To Discuss Moda Center Renovations

The next step in negotiations between the city of Portland and the Trail Blazers regarding renovations to the Moda Center will take place at a meeting of city councilors Thursday morning, writes Vasili Varlamos of KATU in Portland. It will be the first full gathering of council to publicly examine the terms of the deal, and representatives of the team are expected to attend and answer questions from council members.

Council will review the provisions of a draft term sheet that was submitted to Trail Blazers management earlier this month. The initial offer states that in lieu of taxes, the team will commit to a yearly payment that starts at $3MM and escalates by 5% annually over the life of the deal. The offer also stipulates a 20-year non-relocation commitment that would require the team to continue playing at the Moda Center through at least 2047, according to Varlamos. If the Blazers should break that deal, they would be required to repay a portion of the public investment based on how much time remains on the agreement.

The term sheet also requires the team to enter into “labor harmony agreements,” adhere to community benefit commitments and work in conjunction with the city on sustainability initiatives. Community access to the Moda Center is included as well, with the team required to host at least 10 community events each year with no rent involved and affordable concessions.

A team official recently described the term sheet as “a non-starter.”

Council will hear public input into the proposal next Wednesday and Thursday, and a vote is scheduled for August 12.

The state made a $365MM commitment in March to modernize the Moda Center and assure the Trail Blazers will remain in Portland beyond their current arena lease expiration date in 2030. However, that deal is contingent on receiving $120MM from the city and another $88MM from Multnomah County.

At a County Board of Commissioners meeting last week, a proposal to provide $88MM up front and another $13.1MM toward arena maintenance drew strong opposition, per Alissa Gary of The Oregonian. Officials voted to postpone any decision until August 6 while they collect information on how it might benefit county residents.

Another proposal calls for the county to use an existing rental car tax to fund its entire $88 million capital contribution, according to Gary. The amendment would keep business tax money in the regular budget while still fulfilling the county’s commitment.

In another Oregonian story, Gary reports that a provision in the Blazers’ lease stating that Rip City Management is responsible for “maintaining the arena in a first-class manner” could lead to a lawsuit if the team ever decides to relocate. The organization is considered responsible for repairs, maintenance and improvement projects to the building, so the city could have grounds for taking legal action to recoup the money needed for Moda Center upgrades.

The Blazers contend that the first-class provision, combined with the threat of litigation, is affecting their negotiations with the city.

“We need the city to take the prospect of litigation off the table by affirming the work the team has done to maintain Moda Center in a first-class condition,” team spokesperson Charles Boyle told Gary. “Removing that threat is a critical first step to unlock a freer flow of information about the building and the renovation.”

However, city officials view potential legal action as part of their leverage, Gary adds, and don’t appear willing to give it up.