The City of Portland has issued a draft term sheet proposing a $573 million public contribution toward Moda Center renovations, setting the stage for a critical August 12 vote. While some fans view the proposal as a positive step, team sources have labeled the draft a non-starter amid ongoing tensions.
Portland City Council Proposes $573 Million Public Contribution for Moda Center
The $573 Million Proposal and Public Interest
The city’s draft term sheet, shared last week, outlines a significant financial commitment to the future of the Moda Center. The document details a public contribution of $573 million toward renovation projects. To protect the public investment, the city has included requirements for labor commitments, community benefits, and the establishment of a to-be-created arena Joint Authority to oversee project-related decisions.
A key component of the city’s negotiation strategy involves property tax offset payments. The city has proposed an annual payment of $3 million, intended to be split between the city, county, and Portland Public Schools. With a proposed 5% annual increase, this would result in a total return of approximately $100 million over the life of the 20-year lease. Sources in the city told KATU they expected the team to push back on that specific part of the draft term sheet.
Trail Blazers Board of Directors Weighs Non-Starter Term Sheet
Internal Tensions and the Non-Starter Stance
Despite the city’s efforts to advance negotiations, the Trail Blazers have reacted with skepticism. According to team sources, the current terms are viewed as a non-starter. I don’t know why they sent it to us, because they know very little of the stuff we would agree to. They are playing politics at this point,
a team source said on Sunday. Another source added, I think we are very far apart.
The Trail Blazers’ board of directors met Monday to address the term sheet and determine a course of action.
The friction extends to transparency regarding the renovations themselves. The city maintains that it requires detailed plans on how public funds will be spent, while the team has cited a previous threat of litigation from a city councilman in June regarding arena maintenance as a barrier to cooperation. Furthermore, the team has indicated that hiring an architect—a necessary step for providing renderings—is an expense they want the city to help pay for. A Trail Blazers spokesperson told KATU that the team received the draft term sheet and is currently reviewing it.
Portland Clean Energy Fund Committee Stalls on Arena Allocation
The Role of the Portland Clean Energy Fund
The city has looked toward the Portland Clean Energy Fund (PCEF) as a potential funding vehicle for the arena upgrades. Established in 2018, the fund collects a 1 percent tax on retail sales from large corporations and has seen revenue grow to more than $200 million annually, far exceeding original estimates of $60 million.
For more on this story, see Blazers owner Dundon defends $600M Moda Center push amid funding backlash.
Jamie Dunphy, president of the city council, suggested that upgrading the arena’s heating, cooling, and lighting systems—along with replacing aging diesel generators—could align with the fund’s environmental goals. However, the allocation process has stalled. A meeting was arranged with the nine-person committee that controls the purse strings for the fund, but it was cancelled. But the Blazers have not provided information, so the meeting was cancelled,
Dunphy said. There was simply nothing for (the committee) to respond to.
August 12 Deadline Threatens $365 Million in State-Approved Funding
Fan Sentiment and the August 12 Deadline
For Portland fans, the uncertainty has created a sense of urgency. Josh Sargeant, a season ticketholder, expressed a mix of optimism and concern, noting that while he was impressed by the team-friendly nature of the offer, the primary goal remains keeping the franchise in the city. My initial feelings are, ‘oh man, whatever we got to do, let's keep the team here.’ But then when we're talking about public money, we have to talk about public interest,
Sargeant said. Edan Krolewicz, another fan, noted that while the protection clauses were a good start, the financial piece remains a work in progress, stating, The economic part is still, the jury's out on that.
The August 12 city council vote serves as a major inflection point. “August 12th is going to be a real inflection point for our city,’’ said Dunphy. Failure to secure a deal by that date jeopardizes $365 million in state-approved funding, a package that expires in December. Council members have indicated they intend to propose amendments to the draft document when it is reviewed in August. As the city prepares for the vote, Dunphy noted that if the city council decides there is not a willing party on the other side, then we will have to make a decision at that point whether this is the right decision for Portland.
Sources: KATU, The New York Times.
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