Portland one step closer to Blazers arena deal
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Now the real negotiating begins. Photo: Soobum Im/Getty Images
City councilors agreed Wednesday on an initial offer that Portland would pay $120 million toward Moda Center renovations, but they doubled what they're asking the Blazers to pay the city in the process.
Why it matters: The nonbinding term sheet is the city's first formal offer to the team, which is expected to play hardball with the city over Portland's expected contribution to revamping the aging arena.
- The city would also be on the hook for another $275 million in maintenance costs over 20 years.
What's inside: The biggest change from a draft term sheet released last month is an additional $3.1 million in rent the team would pay to the city, which would go up by about 3% each year.
- The city also added a guarantee that the team would continue its charitable work in the community.
That doubles the $3 million annual payment by the Blazers to offset property taxes in the earlier draft, which also included caps on how much public money could go toward upgrades and promises to use union labor.
- In exchange, the Blazers would commit to playing in Portland for the duration of a 20-year lease.
The original draft term sheet floated by the city was described as a "non-starter" by Blazers representatives.
- Team president Dewayne Hankins previously told councilors the draft had had 20 departures from what had been negotiated with the state Legislature but declined to say exactly what they were.
What they're saying: Councilor Loretta Smith praised Wednesday's offer.
- "Portland's negotiated terms stand out as an incredibly responsible and protective document of the public trust," she said.
The other side: Angelita Morillo, one of four councilors to vote "no" on the term sheet, saw things differently.
- "This is not a good deal," she said. "The public is getting fleeced."
Friction point: The Blazers have been unwilling to give city leaders much information about exactly what the city money would fund, saying they needed the money to hire architects to develop detailed plans.
- The team has also cited the threat of lawsuits as a reason to withhold details.
Between the lines: It's still unclear where the city would find the money and whether it could tap the Portland Clean Energy Fund.
Context: The state already pledged $365 million toward the estimated $573 million project, along with another roughly $100 million from Multnomah County.
What's next: That state money expires in December, giving the team and city until then to reach a deal.