FILE - The Moda Center and Interstate 5 pictured from OPB drone footage. The months-long effort to secure public funding for an arena renovation is entering a key phase.
Brooke Herbert / OPB
After months of back-and-forth, the ball’s in Portland’s court to start negotiations with the Trail Blazers over a long-term lease deal.
On Wednesday, city councilors are scheduled to cast their final vote on a term sheet laying out the city’s desired framework for negotiations with the Blazers. That document currently pledges a $120 million up-front commitment to pay for renovations to the Moda Center, the city-owned NBA arena, and $275 million for ongoing maintenance over a 20-year lease. It also asks for a few things from the Blazers in return for the public investment, like an annual $3 million payment, agreement to recognize unionized Moda workers, and other community benefits.
Councilors heard public feedback last week on the plan, and considered many proposed changes to the term sheet at an Aug. 6 meeting — all of which failed to pass. Half of the city council remains unimpressed with the current framework. And all seem frustrated with the way Blazers owner Tom Dundon has approached negotiations.
Council President Jamie Dunphy has blocked off all of Wednesday for councilors to focus on the final term sheet vote, a sign that the meeting might not go swiftly — or smoothly.
Here’s what you need to know ahead of the meeting.
Portland is the last government to approve its Moda funding
Flames are sprayed from the top of the goal posts during the Portland Fire starting line introduction at the Moda Center in Portland, Ore., on July 9, 2026. Gustafson's corgi, Pancake, has become famous among Portland Fire fans.
Saj Sundaram / OPB
In March, the Oregon Legislature pledged $365 million in state bonds to renovate the Moda Center, on the condition that Multnomah County and Portland pitched in to bring the total public investment to just under $600 million.
Last week, Multnomah County commissioners signed off on their $101 million contribution, which will flow through the city to pay for the arena. That amount will largely come from the county’s car rental tax. In exchange for tax dollars, the county is interested in earning new revenue from the arena in some way, requiring the Blazers to hire unionized construction workers, having an oversight role on how public money is spent, among other things.
Portland will need to incorporate the county’s funding plan — and specific requests in exchange for money — into the city’s term sheet Wednesday.
The term sheet can still be changed Wednesday
All 19 amendments to the term sheet introduced by councilors last week failed. But that doesn’t mean councilors won’t try again to tweak the document. Per council rules, councilors will still be able to introduce last-minute amendments before the final vote Wednesday.
It appears at least one councilor is interested in introducing an amendment. Last week, Dunphy hinted that he may introduce an amendment that incorporates some of the ideas already voted down by other councilors. He specifically pointed to amendments that failed with a tie vote, reflecting half of the council’s support. Those amendments all relate to asking for more money from the Blazers — an ask that Blazers representatives have called a “non-starter.”
Portland still doesn’t know how it’ll pay for its financial contribution
Portland officials are poised to approve a $120 million check to the Blazers without knowing how they’ll pay for it.
Mayor Keith Wilson has suggested using the estimated $50 million in tax proceeds from the team’s sale to cover a portion of the bill. He’s discussed tapping two other city revenue streams to cover the rest: the Portland Clean Energy Fund and a fund within Prosper Portland, the city’s economic development bureau.
To advance that plan, the boards that govern both funding streams must first decide whether their revenue can be spent on arena renovations. But those boards don’t have the information they need from the Blazers to make that determination. The Blazers have yet to share with the city explicit details about their renovation plans.
A spokesperson for the team told OPB last month that the Blazers are waiting for the city to commit funding (and clear up a litigation threat) before sharing these details. But that makes it impossible for the city to determine how, exactly, they’ll pay for renovations.
It’s a detail the city might not know for certain until next year’s budget cycle, after the deal is inked.
The Blazers are still caught up on a legal threat
Portland Fire guard Teja Oblak (7) makes a drive towards the basket as Las Vegas Aces center A'ja Wilson (22) attempts to block the drive at the Moda Center in Portland, Ore., on July 9, 2026. The Portland Fire played the Las Vegas Aces, loosing 88-80.
Saj Sundaram / OPB
The current short-term lease agreement between Portland and the Blazers requires the team to maintain the Moda Center as a “first-class” NBA arena. In June, City Councilor Steve Novick questioned whether the Blazers are meeting that standard and, if not, whether the city can take legal action.
According to the Blazers, this threat of a lawsuit has chilled their negotiations with the city. At a public meeting last month, Blazers officials pressed the city to remove the “first-class” term from the agreement to avoid potential legal action.
Zandria Conyers, the Blazers’ chief legal officer, said the term may keep negotiations from advancing smoothly.
“Once we have a full suite of options ahead of us … without the threat of litigation hanging over our head, I think you’ll find that we can be reasonable,” Conyers said at a July council meeting.
But the city sees this concern as a form of leverage. City attorneys say they won’t consider editing the current lease. Wilson has assured Blazers officials publicly that the city has no intention of suing them.
It’s not clear whether the Blazers will engage in negotiations until that phrase is struck.
This is just the start of negotiations
Advancing the term sheet simply tells the city’s negotiators what councilors hope to get out of the lease deal, but it is far from a final agreement.
Wednesday’s vote is expected to kick off four months of negotiations between the city, state, county and Blazers. City councilors are expected to receive regular updates on the talks from their representatives in closed-door meetings, where they may be able to give feedback. If the timeline advances as planned, city councilors will vote on a proposed deal in December.
But any delays from the Blazers or other parties could push that timeframe out.
The city fears any delays could jeopardize the entire deal. That’s because the state wants to sell bonds in spring of 2027 in order to conclude Moda Center construction in time to host the 2030 NCAA Women’s Final Four tournament. State officials say they need about four months to prepare for a bond sale. If that timeline is derailed, the state Legislature may need to vote to reauthorize a new bond to pay for Moda.
“I don’t know if the appetite is there from our state Legislature to do that,” City Administrator Raymond Lee told OPB last month.
