After an extended meeting on Wednesday, the City of Portland has approved an offer sheet to the Portland Trail Blazers listing conditions and commitments for renovation of the Moda Center Arena in which the Blazers play. The motion passed by an 8-4 vote. Here are the terms offered. We are summarizing for brevity.
The City Provides:
- Funds not to exceed $120 million for renovations of the Moda Center
- $275 million in ongoing capital improvement expenses over the course of the agreement, funded by parking fees, ticket “user” fees, and other existing forms of revenue
The Blazers Provide:
- $3.1 million in rent each year for use of the facility for the duration of the 20-year agreement
- $3.0 million annually as an offset for property taxes which otherwise could have been collected on the surrounding grounds
- Obligation to pay all cost overruns on renovations
- Labor agreements, including unionized labor and community benefit agreements.
- Agreement to occupy the arena and not relocate for the duration of the agreement with a good-faith commitment to attempt to renegotiate the lease five years prior to its expiration
Renovations will be completed within a four-year period. Both the Blazers and the city must jointly sign off on renovations.
You can find a preliminary
version of the offer sheet here. We will try to get you the fully-amended version as soon as it becomes available.
This offer sheet does not close the matter. The Blazers must agree to the terms—some of which they’ve already indicated antagonism towards—before the funds can be allocated.
