Portland council debates $120 million public contribution for Trail Blazers arena renovation

Portland city officials approved a framework to begin negotiations with the Trail Blazers that would see the city contribute $120 million toward a renovation of the city-owned Moda Center, with Multnomah County and the state of Oregon covering the remaining costs. The plan also includes $275 million for routine maintenance over the next 20 years and would require the team to pay $5 million annually to use the arena, a figure the owner has reportedly rejected.

Councilor Elana Pirtle-Guiney said the city faces a “tough position” without a “good-faith negotiating partner.” Councilor Loretta Smith described the investment as “critical” for the city’s economy and identity, while Councilor Candace Avalos warned that the funding would divert money from parks, housing and public safety, arguing the owners should make a larger private contribution.

The negotiations come as Trail Blazers owner Tom Dundon, who purchased the team for $4.25 billion in March, has demanded nearly $600 million in public funds for arena upgrades. Critics note the similarity to the 2006 sale of the Seattle SuperSonics, when owner Howard Schultz sought public financing for KeyArena and later relocated the franchise to Oklahoma City.

Seattle documentary director Jason Reid, who chronicled the Sonics’ departure, said the situation in Portland feels “uncanny” and warned that “they’re going to have to do it or they’re going to lose the team.” Former Seattle mayor Greg Nickels added that the Sonics’ owners had clear intentions to move the team once the sale was completed.

Peter Steinbrueck, a former Seattle council member, called the practice of demanding public money while owners reap profits a “huge racket.” He suggested that owners should fund such projects themselves.

Negotiations are expected to continue through the end of the year, with Portland still determining how to allocate the proposed $120 million contribution.