In the latest bout of wrangling over public funding for renovation of the Moda Center Arena—the home of the Portland Trail Blazers—the Portland City Council will vote on terms surrounding the city’s potential $120 million contribution to the project. In the third of a trilogy of articles, Blazer’s Edge Reader BlazerTag has authored a summary of what’s under discussion and how it fits into the process. Have a read below and thank BlazerTag while you’re at it!
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Portland City Council votes today to approve
the next step of the Moda renovation funding puzzle that’s been waiting to be solved since Oregon Senate Bill 1501 passed way back in March.
In between then and now, we’ve seen posturing, stonewalling, lawsuit warnings, adversarial public work sessions, a letter from suburban mayors, lobbyist campaigns, listening sessions, an initial term sheet deemed a “non-starter”, and citywide surveys. Above all else looms the silent, implied threat of relocation.
The Blazers’ future in Portland hangs in the balance.
Where and When to stream:
You can find the ongoing meeting streamed live here.
What a “Yes” Vote Means
It means the real bargaining can finally begin. Approving the term sheet empowers the City’s negotiating team to begin the slow (and hopefully quiet and uneventful) process of hammering out the details of the Blazers long term lease agreement at Moda Center.
Why the Blazers Need a “Yes”
Buying an NBA franchise is expensive, even for a billionaire. The easiest way to increase the value of the Blazers is to improve the stadium where they play, but it takes a lot of cash that the owners just don’t have, so now they’re turning to the tried-and-true method of using the threat of relocation to intimidate the local government into subsidizing the renovations.
The threat of relocation’s credibility is tenuous, though. The NBA is in the process of expanding the league by adding one team each in Seattle and Las Vegas. They are expected to announce expansion by the end of the year (coincidentally at the same time the State funding bill for Moda expires), which will officially take the two most viable markets off the table. After that, the relocation options are slim pickings.
The Blazers’ strategy has a narrow window of opportunity.
Why the City Needs a “Yes”
Delaying the start of negotiations runs the risk of the City losing the funds from the State and County that have already been promised for Moda Center renovations. Political winds can shift, and if no deal is in place after Senate Bill 1501 expires, passing a new one in its place is no guarantee.
The City is also on a tight timeline to get bonds sold for the part of the renovations that need to be completed in time for the NCAA Women’s Final Four that Moda Center will be hosting in 2030.
The Blazers aren’t the local governments’ only partner in these negotiations, either. A “yes” vote is a signal to the NBA and its Board of Governors that the City is committed to keeping men’s professional basketball in Portland, Oregon.
Why a “No” Vote is Unlikely
It would be a complete disaster for too many people who are a lot more powerful than the Portland City Council. The funding package is an intricate Rube Goldberg machine that gets less convoluted as each body of government clicks its part of the mechanism into place. A “yes” vote today simplifies the process by moving Moda lease negotiations from the public arena to a private bargaining table, which is good for everyone.
Then Why are Councilors Arguing?
The fight isn’t over if something will pass, but what will pass. There isn’t any wriggle room as far as the amount the City will be on the hook for, it’s going to be $120 million no matter what. The argument will be over what the City gets for their money.
In the initial term sheet, the only revenue the City or County would receive from the Blazers is a property tax offset payment totalling $100 million over a 20 year lease. Many Councilors want more. In fact, as I write this, councilors have just agreed to add a $2 million dollar rent to the term sheet they plan on forwarding.
I doubt that will be the only source of revenue Councilors will consider. I expect debates about an increased user fee on all ticketed events, a cut of the naming rights, a demand for private investment, and additional parking revenues, as well.
After Today, Will this Finally be Over?
Sorry, but no.
Hopefully, after a term sheet is forwarded, rhetoric will cool down and the actual bargaining can begin. The Blazers and the City’s negotiating team can theoretically come to an agreement based on the terms forwarded today. The Council will have a final say to approve it with another vote, which could potentially bring this long, tortuous process to an end. That is months down the road, though.
We aren’t there yet, but we should be one step closer after today.
