Portland releases draft term sheet outlining $573 million public investment in Moda Center renovation
Portland disclosed a draft agreement with the Trail Blazers that proposes $573 million in public funding for arena upgrades and a $3 million annual payment in lieu of taxes, with the city, county and state sharing costs.
Portland officials have made public a 14-page draft term sheet titled “Moda Center – Arena Renovation and Post-Renovation Operations Term Sheet,” which details a proposed $573 million public investment in the arena’s renovation. The plan would allocate $275 million from the city over 20 years for eligible capital expenses, with additional contributions from Multnomah County and the state, and includes a $13.6 million county share for ongoing operations in fiscal years 2027-28 and 2031-36.
The agreement also requires the Trail Blazers to pay a payment-in-lieu-of-taxes (PILOT) of $3 million per year, increasing by 5 percent annually, which could total roughly $100 million over the lease term. In return, Rip City Management would assume year-round responsibility for arena operations, including event scheduling, maintenance, concessions, security and compliance with NBA standards.
Other provisions call for prevailing-wage construction contracts, local-hiring preferences, and a commitment to host at least ten community events each year at no rent, with affordable concession pricing. The draft also contains a non-relocation clause and outlines potential liquidated damages if the team were to move during the 20-year lease.
Councilor Mitch Green cautioned that the document is not a final council resolution, noting it was shared after an executive session and will still require public debate and amendment before adoption. A council vote is scheduled for August 12 to consider a final term sheet that will guide negotiations with the Trail Blazers.