PORTLAND, Ore. — Representatives from the Trail Blazers met with Portland city councillors on Thursday to discuss a new lease and the commitment of public funds to renovate the aging Moda Center.
The public work session comes amid the contentious negotiations over the $600 million renovation project, part of striking a long-term lease agreement with the Blazers. A current bridge lease expires in 2030.
The state has already pledged $365 million toward the deal, provided Portland contributes $120 million and Multnomah County also provides funds.
New Blazers owner Tom Dundon has previously said in interviews that he would commit to a 20-year lease that would keep the team in Portland if the state, city and county agree to fund the renovation of the Moda Center, the oldest arena in the NBA that hasn’t been upgraded.
An early draft term sheet included funding caps and said any cost overruns should be paid for by the team.
Dewayne Hankins, the team’s president of business operations, said the Blazers’ new owners “believe we can build a team that Rip City can be proud of, and they believe that Portland is the best and most obvious choice for this team.”
Hankins and the Blazers maintain that before negotiations can begin in earnest, the bridge agreement must be amended to take away a provision that requires the team to maintain the Moda Center as a “first-class” NBA arena.
The provision has been used by a city councillor to suggest the city might take legal action if the Blazers are not meeting the standard. The threat of a lawsuit has hung over efforts to strike a deal, Hankins said.
“Although we enter negotiations in good faith, the first-class standard has been wielded as a weapon, chilling our negotiations. To be clear, the first-class standard is a relic language from a 30-year-old lease. It is not standard in today’s NBA deals, and was certainly atypical at the time. Not only that, it would not be included in any new deal with the city,” Hankins said.
He said the team has already contributed more than $1 billion toward construction and maintenance of the arena since it was built.
Portland Mayor Keith Wilson said: “We are not contemplating suing the Blazers, Rip City Management or other parties.”
Multnomah County will vote on its contribution toward the renovations on Aug. 6, and Portland’s city council is set to vote on the matter on Aug. 12.
