The City of Portland delivered a draft term sheet to the Trail Blazers on July 16, 2026, outlining a proposed $120 million investment for Moda Center renovations. The document, which includes a 20-year non-relocation clause, arrives amid escalating tensions between city officials and the team’s new ownership regarding project transparency and negotiation timelines.
Draft Term Sheet Terms and City Requirements
The proposal submitted by the city serves as the first formal framework for a long-term lease agreement. According to KATU, the city’s draft includes several non-negotiable conditions aimed at protecting public interest. Chief among these is a binding 20-year non-relocation commitment, which would require the Trail Blazers to play all home games at the Moda Center through the duration of the agreement.
Financial safeguards within the term sheet establish clear caps on public funding and limit eligible expenses. The city has also proposed an escalating $3 million annual payment from Rip City Management to offset property taxes, with proceeds distributed among the City, County, and Portland Public Schools. Other requirements include labor-peace agreements, local hiring mandates, and specific partnerships with Albina-based organizations.
For more on this story, see Portland Debates $120M Moda Center Funding to Keep Trail Blazers in City.
Stalled Negotiations and Ownership Transparency
The delivery of the term sheet follows a period of intense friction. City officials have repeatedly accused the team of failing to provide essential financial and design information. City administrator Raymond Lee noted after an executive session that communication had been limited to verbal conversations, despite formal requests for data.
The Trail Blazers organization has disputed these claims, arguing that they have been transparent throughout the process. Team spokesperson Charles Boyle maintained that the city already possesses more data than state leaders had during the legislative session. The Trail Blazers are ready to begin formal negotiations immediately using the framework set for us by SB1501 and the $365 million already made available for this project,
Boyle stated. Regarding the newly received draft, the team confirmed: I can confirm we received a draft term sheet this afternoon, and we’re reviewing the document now.
This follows our earlier report, Blazers owner Dundon defends $600M Moda Center push amid funding backlash.
NBA Commissioner Adam Silver’s Assessment
The pressure to finalize a deal has reached the league office. NBA Commissioner Adam Silver, speaking in Las Vegas on July 14, expressed concern regarding the pace of the talks. While affirming the league’s commitment to a long-term future in Portland, Silver noted that several open issues remain unresolved.
Legislative Deadlines and Funding Frameworks
The urgency is dictated by a hard December deadline, when the state’s $365 million bond package expires. The City Council has set a self-imposed target of August 12 to vote on the term sheet, a move intended to provide enough time to finalize a comprehensive lease agreement.
Read also: Trail Blazers Get Term Sheet.
A central point of contention remains the disparity between the project’s funding structure and other NBA arena deals. A state-commissioned report by PFM Financial Advisors found that most comparable projects include significant private investment or revenue-sharing models—features currently missing from the Moda Center proposal. While the team has pointed to cities like Salt Lake City and Memphis as benchmarks where public funding dominated, city leaders are pushing for a model that ensures a more balanced, long-term return on investment for taxpayers.
