Tom Dundon’s wish has been granted.
On Wednesday, the Portland City Council approved $120 million in city funding toward a potential $600 million renovation of the Moda Center, which houses the Trail Blazers. Combined with the $101 million approved by Multnomah County last week and $365 million from the state, the renovations now have about $586 million pledged to improve the 30-year-old arena.
Dundon, who bought the team in March and has since led numerous cost-cutting efforts, could have a newly renovated arena without paying a dime for it.
Now come the lease negotiations.
The term sheet, which was approved in an 8–4 vote, pledges the $120 million plus $275 million for maintenance to the arena for the next 20 years. It also seeks more than $6 million in annual payments from the team, including a 3-5% yearly increase from Rip City Management, the team’s umbrella company, over the course of the lease.
“We appreciate today’s actions and acknowledge there is still meaningful work ahead as we continue negotiations,” Trail Blazers president Dewayne Hankins said Wednesday in a statement. “Our goal remains the same: to reach a deal that allows the Trail Blazers to succeed on the court and as a business, supports a thriving Portland economy and creates a path for the team to remain in Portland for decades to come.”
The council also wants the team to partner with local organizations to increase public benefits and is seeking $3.2 million from the Trail Blazers in annual rent. That’s an increase from the $2 million the council had discussed before Wednesday’s meeting. The city also wants the team to agree to a “labor harmony agreement” that could bring unionized jobs to the Moda Center as well as a $3 million annual payment in place of property taxes.
“Our job today is to put our best foot forward and to make sure that the league and the owners and everybody knows that we are at the table to be a serious partner and keep this team,” said Councilor Eric Zimmerman, who voted in support of the term sheet.
Wednesday’s vote came after months of public turmoil between the team and the council, which has mostly played out in the media. The council has been upset with what it sees as the team’s lack of transparency throughout the process, including its failure to disclose how it arrived at the $600 million figure for renovations.
Those feelings seem to remain despite the term sheet’s passing.
“This is still the worst deal in the country,” said Councilor Angelita Morillo, who voted against the term sheet. “The public is getting fleeced.”
The two sides have until the end of the year to agree to a new long-term lease agreement so the city can approve a bond sale for its financial contribution. A negotiation over portions of the term sheet awaits. The team’s current lease expires in 2030.
Councilman Steve Novick is the member who pushed for the rent amendment and said the figures are negotiable. Before Wednesday’s vote, the Trail Blazers had said most of the provisions in the term sheet are “non-starters.” The council is expected to vote on a final agreement by mid-December.
“To me, this is a strong opening offer,” Novick said. “But I’ve already signaled that I’d be willing to accept something that’s arguably less. I’m pleased with where we are today.”
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