Lawsuit threat chills Moda Center lease talks, Blazers say
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Blazers representatives outlined their issues with the city over the Moda Center for the first time Thursday. Photo: Steph Chambers/Getty Images
The threat of litigation has emerged as the biggest roadblock to a new Moda Center deal between Portland and the Trail Blazers, team representatives told city councilors Thursday.
Why it matters: The litigation dispute is chilling negotiations over a long-term arena agreement needed to unlock hundreds of millions of dollars in public funding, Blazers representatives said.
Catch up quick: Last month, Councilor Steve Novick noted that the Blazers' lease requires the team to keep the arena at a "first-class standard" and that the city could sue if the team were to leave.
- But Blazers president Dwayne Hankins told city leaders Thursday that the "first-class standard" was being "wielded as a weapon."
- "Our team is ready to negotiate seriously, promptly and in good faith," but only if a lawsuit is taken off the table, Hankins said.
The other side: The city's negotiating team has "never contemplated suing the Blazers," Mayor Keith Wilson said.
- "The ruminations contemplated by this council are just that."
Yes, but: Novick told the Oregonian "we'd be crazy to give up the right to bring a lawsuit" if the team were to leave.
Between the lines: Hankins noted that the team had invested roughly $1 billion in building and maintaining the arena over the last 30 years and confirmed the Blazers were unwilling to contribute any further private money for renovations.
Context: The aging arena needs roughly $600 million in upgrades, which the team's new owners have said they aren't willing to chip in for.
- The state has put up $365 million, but that money is contingent on the city ponying up $120 million.
- The city delivered a draft term sheet earlier this month for a new 20-year lease that included caps on how much public money could go toward upgrading the arena and $3 million in annual payments from the team that would escalate over time.
- Hankins said the term sheet had 20 departures from what had been negotiated with the state legislature, but declined to say exactly what they were, again citing the threat of a lawsuit.
What's next: City councilors are set to discuss the Moda deal again next week and will vote on a final term sheet Aug. 12.
- But it's unclear how much progress will happen between now and then with the litigation issue unresolved.