Portland City Council to Review Moda Center Renovation Terms
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The Portland City Council will hold a public work session Thursday morning to examine the draft agreement outlining planned renovations to the Moda Center, the home arena of the Trail Blazers.
The term sheet, delivered to team ownership earlier this month, proposes that the franchise replace traditional taxes with an annual payment starting at $3 million, increasing 5 percent each year for the length of the deal. It also calls for a 20-year, non-relocation clause that would keep the Blazers in Portland through at least 2047. Should the team move before then, it would have to reimburse a portion of the public funding based on the time remaining on the agreement.
Additional provisions require the club to:
- Sign labor-harmony agreements
- Meet community benefit commitments
- Collaborate with the city on sustainability goals
- Provide community access by hosting at least 10 rent-free events per year with affordable concessions
A Blazers representative has labeled the current proposal a “non-starter.”
Council members will accept public testimony on the plan next Wednesday and Thursday, with a vote scheduled for Aug. 12.
Financing Details
In March, Oregon lawmakers pledged $365 million to modernize the arena, contingent on another $120 million from the city and $88 million from Multnomah County.
The county’s Board of Commissioners last week delayed a decision on supplying its share—$88 million upfront plus $13.1 million for arena maintenance—until Aug. 6 after residents voiced concerns. An alternative plan would use revenue from an existing rental-car tax to cover the entire capital contribution, preserving general business-tax dollars for other uses.
Potential Legal Dispute
Language in the Blazers’ lease requires Rip City Management to keep the facility “first-class.” City attorneys believe that obligation could support litigation to recover renovation costs if the team relocates. The franchise argues that the threat of a lawsuit is hampering discussions.
“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 spokesman Charles Boyle said. City officials, however, consider the potential for legal action a key bargaining tool and have shown no inclination to relinquish it.
The council’s Thursday session will be the first full public review of the proposed renovation terms.
Source: Hoops Rumors
