Negotiations between the Portland Trail Blazers and the city of Portland regarding the renovation of the Moda Center and a new lease agreement are reportedly at a standstill. A team source indicated that the two parties are “very far apart” on terms, suggesting a significant disagreement over the proposed deal. The ongoing discussions could impact the team’s future in Portland, with the current lease set to expire in 2030.
The city of Portland recently presented the Trail Blazers with a term sheet for a 20-year lease. This proposal includes $600 million in public funds for Moda Center renovations. However, the city’s terms also require the Trail Blazers to contribute $3 million annually for a property tax offset, which would increase over time. Additionally, the deal mandates the use of union workers and sets limits on potential project cost overruns.
A source within the Trail Blazers described the term sheet as a “non-starter,” expressing confusion as to why it was sent given the team’s likely objections. The source suggested that the city might be engaging in political maneuvering. The Trail Blazers‘ board of directors is scheduled to meet to discuss the term sheet and determine their next steps, while the city council is expected to vote on the funding by August 12.
Funding Discrepancies and Transparency Concerns
The state of Oregon has already committed $365 million towards the renovation project, with Multnomah County pledging an additional $100 million. However, Portland’s expected contribution of approximately $120 million remains under negotiation. City council members have voiced concerns about the transparency of how public funds would be utilized for the renovations.
Councilor Mitch Green stated that the council seeks detailed information on the scope and scale of what the public money would cover. He emphasized that the city council is not a “rubber-stamp council” and requires a good-faith effort from the Trail Blazers to provide these details. The Trail Blazers, however, have expressed reluctance to share their renovation plans, citing that many are still conceptual and due to a past threat of legal action from councilor Steve Novick regarding the arena’s maintenance.
According to the Trail Blazers, a handshake agreement involving Mayor Keith Wilson, the city, and the county was reached in March regarding the $365 million state commitment, along with the city’s $120 million and Multnomah County‘s $88 million. The team expressed confusion over what they perceive as a shift in the city’s stance since then. Elliott Kozuch, a spokesman for the city administrator, confirmed that there was momentum toward an agreement in March but clarified that formal approval from the City Council and County Commission was always a prerequisite.
The Trail Blazers‘ renovation concepts include a new atrium entrance on the north side of the arena to improve traffic flow, additional kitchens on all three levels to enhance concession services, and potential changes to seating, such as eliminating some 300-level seats to build a bar and updating club-level seating.
Regional Impact and Future Outlook
A coalition of mayors from across the Portland metropolitan area has urged city leaders to finalize the deal, highlighting the regional importance of the Moda Center. In a letter addressed to Governor Tina Kotek, Mayor Keith Wilson, and Multnomah County Chair Jessica Vega Pederson, the Metropolitan Mayors’ Consortium emphasized that the arena serves residents throughout the region and contributes to economic activity beyond Portland’s city limits.
The consortium’s letter noted that the Trail Blazers and other teams associated with the arena are considered home teams for many communities, with players and staff residing in various surrounding cities. They argued that the facility supports jobs, tourism, and local businesses, pointing to spending at hotels, restaurants, and other establishments before and after events. The letter encouraged officials to continue professional negotiations while acknowledging the significant regional investment already made.
NBA Commissioner Adam Silver previously stated that negotiations for the Moda Center renovation had “gone off track,” adding pressure on local leaders to reach an agreement before key state funding deadlines. Despite the ongoing tensions, two high-ranking sources within the Trail Blazers stated that owner Tom Dundon has not mentioned relocating the team, and the team’s desire is to remain in Portland.
However, a Trail Blazers source indicated that the team has been reviewing other recent arena deals in cities like Oklahoma City and Utah, and may explore options for a new deal in Portland, potentially even including a new arena. Councilor Mitch Green stated that the threat of relocation does not sway him, suggesting that any move by Tom Dundon would be based on increasing profit. The city is aiming to approve a term sheet in August before negotiating a final lease later this year.
Source: nytimes.com