Portland City Council Approves $120 Million for Moda Center Renovation Amid Public Funding Debate
The Portland City Council voted 8-4 to commit $120 million toward a $600 million overhaul of the Moda Center. The preliminary agreement sets the stage for high-stakes lease negotiations with the Portland Trail Blazers' new ownership.
By Tiago Sousa
- City Negotiators
- Public investment is necessary to keep the team, but it must include strict financial protections for taxpayers.
- Taxpayer Advocates
- Billionaire owners should finance their own arena renovations rather than relying on public subsidies.
- Trail Blazers Ownership
- A modernized arena is a baseline requirement for the franchise to remain viable in Portland.
- State and County Officials
- Securing the arena's future is critical to maintaining the region's economic output and entertainment infrastructure.
Common questions
How much will the Moda Center renovation cost?
The total renovation is estimated to cost $600 million, with additional funds required for ongoing maintenance over the next 20 years.
Who is paying for the upgrades?
The proposed funding is entirely public: $365 million from the State of Oregon, up to $101.6 million from Multnomah County, and $120 million from the City of Portland.
Is the Trail Blazers' owner contributing money?
As of the latest term sheet, owner Tom Dundon has not committed private capital to the renovation costs, which has sparked protests from taxpayer advocates.
What does the city get in return for its $120 million?
The city is demanding a 20-year lease to keep the team in Portland, along with $3.1 million in annual rent and a $3 million annual tax offset payment.
The short answer
- The Portland City Council voted 8-4 to approve a preliminary term sheet committing $120 million to the Moda Center renovation.
- The city's demands include a 20-year lease, $3.1 million in annual rent, and a $3 million annual tax offset payment.
- The total renovation is projected to cost $600 million, with the State of Oregon and Multnomah County providing the remaining funds.
- Trail Blazers ownership has until the end of 2026 to finalize the legally binding lease and secure the state's bond commitment.
The Portland Trail Blazers need a modernized arena to stay in town, but taxpayers are furious about footing the bill for a billionaire owner. On Wednesday, the Portland City Council took a major step toward resolving that standoff, voting 8-4 to approve a term sheet that commits $120 million in city funds to the Moda Center's renovation.[1][2]
The actionable takeaway for Portland residents is that this vote establishes the city's opening demands for a new 20-year lease. The total arena overhaul is projected to cost $600 million. To access the city's $120 million share, the Trail Blazers' ownership group, led by Texas billionaire Tom Dundon, must agree to pay $3.1 million in annual rent and a $3 million annual tax offset.[1][2]
The city's contribution is the final piece of a massive public funding package. The State of Oregon has already committed $365 million in bonds, and Multnomah County recently approved up to $101.6 million. Together, these public investments are designed to cover the bulk of the $600 million project, keeping the 31-year-old arena competitive with newer NBA venues and securing the franchise's future in Oregon.[3][4][5][6]
The heavy reliance on public money has sparked intense pushback. Protesters gathered at City Hall on Wednesday with signs reading 'No Bailouts for Billionaires,' arguing that Dundon should finance the upgrades privately. Critics point out that the city already owns the arena—having assumed ownership in 2024—and shouldn't have to subsidize a highly profitable sports franchise while local budgets are stretched thin.[2][3][7][8]
The heavy reliance on public money has sparked intense pushback.
Council members who supported the term sheet framed the financial demands as a necessary safeguard for taxpayers. By requiring rent and tax offset payments that escalate annually, the city aims to recoup its $120 million investment over the life of the 20-year lease. The term sheet also mandates labor peace agreements for arena workers, ensuring that the economic benefits extend to the local workforce.[1][2]
Dundon and the Trail Blazers' management have historically resisted committing private capital to the renovation. Team representatives argue that the franchise already generates $600 million annually for the local economy and that a state-of-the-art arena is a standard requirement for keeping an NBA team. The threat of relocation has loomed over the negotiations, with Dundon reportedly exploring other markets if a favorable deal fails to materialize.[1][3][4]
The timeline for finalizing the deal is tight. The state's $365 million bond commitment requires a signed lease by the end of 2026. This gives city negotiators, county officials, and the Trail Blazers exactly four months to turn Wednesday's preliminary term sheet into a legally binding agreement.[4][6]
If the two sides cannot reach a compromise, the state funding could evaporate, leaving the Moda Center without a clear path to modernization and the Trail Blazers without a long-term home in Portland. For now, the city has laid its cards on the table, shifting the pressure back to the team's ownership to accept the terms or walk away.[2][4]
Why it matters
The $600 million public investment will determine whether the Trail Blazers remain in Portland for the next two decades. For local taxpayers, the deal represents a massive financial commitment that city leaders are trying to offset through new rent and tax demands.
Competing readings
City and State Officials' View
Public investment is required to retain the franchise, but it must come with strict financial protections.
Local leaders view the Moda Center as a critical economic engine that generates $600 million annually for the region. While they acknowledge the political unpopularity of subsidizing a billionaire owner, they argue that losing the Trail Blazers would be devastating to downtown Portland's recovery. By demanding $3.1 million in annual rent and tax offsets, city negotiators believe they have found a middle ground that keeps the team in town while eventually recouping the taxpayers' $120 million upfront investment.
Taxpayer Advocates' View
Billionaire owners should finance their own arena renovations rather than relying on public subsidies.
Critics and activist groups argue that the $600 million public funding package is a corporate bailout that diverts resources from pressing civic needs. They point out that Tom Dundon has the capital to fund the renovations privately and that the city, which already owns the arena, is taking on all the financial risk. For these advocates, the threat of relocation is an empty bluff used to extort favorable lease terms from local governments.
Trail Blazers Ownership's View
A modernized, state-of-the-art arena is a baseline requirement for the franchise to remain viable in Portland.
The team's management contends that the 31-year-old Moda Center is falling behind the standards of modern NBA venues. They argue that the franchise has historically driven massive economic activity in the Rose Quarter and that public funding for arenas is a standard practice across the league. From their perspective, the city's demands for rent and tax offsets undermine the financial feasibility of the deal, making it harder to justify keeping the team in a stagnant business climate.
The sequence
1995
The Rose Garden Arena (now Moda Center) opens as the home of the Portland Trail Blazers.
2024
The City of Portland assumes ownership of the Moda Center from the Paul Allen estate for $1.
March 2026
The Oregon Legislature passes SB 1501, committing $365 million in state bonds to renovate the arena.
August 6, 2026
Multnomah County approves a resolution to invest up to $101.6 million toward the renovation.
August 12, 2026
Portland City Council votes 8-4 to approve a term sheet committing $120 million and setting lease demands.
December 31, 2026
Deadline for the city and the Trail Blazers to finalize a legally binding 20-year lease.
Jargon, explained
- Term Sheet
- A non-binding preliminary document that outlines the key financial and control terms of a proposed agreement, serving as a starting point for negotiations.
- Tax Offset Payment
- A negotiated fee paid by a private entity to a local government to compensate for property taxes they are exempt from paying on a publicly owned building.
- Labor Peace Agreement
- A contract between an employer and a labor union in which the union agrees not to strike or disrupt operations in exchange for the employer remaining neutral during union organizing efforts.
What’s still unclear
- Whether Trail Blazers owner Tom Dundon will accept the city's demands for annual rent and tax offset payments.
- How the city of Portland will specifically fund its $120 million commitment, as the term sheet does not bind the city to a specific revenue source.
- What specific architectural upgrades and modernizations will be included in the $600 million renovation package.
Sources
Source coverage
8 outlets
4 viewpoints surfaced
[1]Willamette WeekCity Negotiators
Portland City Council Approves Term Sheet for Moda Center Renovation
Read on Willamette Week →[2]Portland TribuneCity Negotiators
Portland council backs $120M Moda Center investment, approves term sheet
Read on Portland Tribune →[3]OPBCity Negotiators
Portland councilors back $120M for Moda Center, in key milestone toward Blazers deal
Read on OPB →[4]Rose Garden ReportTrail Blazers Ownership
Portland City Council Approves $120 Million Term Sheet for Moda Center Funding: What Comes Next
Read on Rose Garden Report →[5]KATUState and County Officials
Multnomah County offers up to $101 million toward Moda Center renovation talks
Read on KATU →[6]KGWState and County Officials
Oregon Senate bill lays groundwork for state to fund $600M Moda Center renovation
Read on KGW →[7]KOINTaxpayer Advocates
Portland leaders weigh controversial use of climate funding for Moda Center upgrade
Read on KOIN →[8]Oregon CatalystTaxpayer Advocates
Blazers spent $100K to get $600M bailout
Read on Oregon Catalyst →
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