The Portland City Council is scheduled to meet Thursday morning for a work session on a proposed Moda Center term sheet according to KATU. The session marks the first time the full council will publicly examine potential terms for a deal intended to modernize the city-owned arena and secure the long-term future of the Portland Trail Blazers.
Portland City Council to Hold Work Session on Moda Center Funding
City Council President Jamie Dunphy had invited team leadership to participate, noting in a letter that direct participation is crucial for finding a positive path forward for both the public funding partners and the team. District 4 City Councilor Mitch Green noted that the session provides a platform for councilors to get questions answered and establish a baseline of details.
Proposed Terms and Public Funding Breakdown
Thursday’s discussion will not involve approving a final lease or authorizing funding. Instead, council members will review a draft term sheet outlining major provisions to guide negotiations between the city and Rip City Management, a subsidiary of the Trail Blazers that operates the 31-year-old arena located on the east bank of the Willamette River.
The overall renovation project is estimated to cost $600 million. In March, the team secured $365 million in funding from the Oregon state legislature, though those state bonds are contingent on local contributions. Mayor Keith Wilson has proposed contributing up to $120 million from the city, while Multnomah County has proposed providing $88 million—with a total expected contribution of roughly $101 million—using a tax on rental cars.
The draft term sheet requests that the Blazers commit to:
- A 20-year non-relocation commitment requiring the team to play all home games at the Moda Center through at least 2047.
- A payment in lieu of taxes of $3 million per year, escalating by 5% annually over the life of the deal.
- Labor harmony agreements, sustainability initiatives, and community benefit commitments.
- Community access to the venue, including at least 10 rent-free community events annually featuring affordable concession pricing.
Key Stumbling Blocks and Dispute Over Litigation Threats
A major stumbling block in the proceedings involves a potential threat of a lawsuit by the city. Under the existing lease, which expires in October 2030, Rip City Management is obligated to maintain the Moda Center in a first-class manner
. While the clause reportedly prevents the city from suing over this provision while the team is under lease, it leaves open the possibility of legal action should the team relocate.
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,
Charles Boyle stated. Removing that threat is a critical first step to unlock a freer flow of information about the building and the renovation.
City officials have shown reluctance to surrender that leverage. District 3 Councilor Steve Novick remarked regarding the possibility of relocation at the end of the lease, we’d be crazy to give up the right to bring a lawsuit under that provision if that happens.
Furthermore, team owner Tom Dundon, who purchased the franchise in the spring, has made it clear that he does not expect to contribute financially to the renovation plan.
Next Steps and Upcoming Schedule
Following Thursday’s work session, the council is scheduled to hear public testimony on the draft term sheet on August 5 and August 6 according to KATU. A formal vote by the Portland City Council on the term sheet is scheduled for August 12.
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