From left, lead city negotiator and a managing partner of Stafford Sports, LLC Carl Hirsh, deputy city administrator Donnie Oliveira and senior deputy city attorney Ken McGair sit at the dais as dozens of attendees hold up “No Bailouts for Billionaires” signs in protest of public funds going to the Moda Center during a Portland City Council meeting, in which the final vote on a “term sheet” is slated to happen, at Portland City Hall in Portland, Ore., on Aug. 12, 2026. The term sheet lays the framework for Moda Center lease negotiations with the Portland Trail Blazers.
Eli Imadali / OPB
Portland City Council voted 8-4 to kick off the city’s negotiations with the Portland Trail Blazers on Wednesday, approving a blueprint for hashing out a long-term lease with the team. The vote also pledges councilors’ commitment to spending $120 million on renovating the Moda Center, despite not knowing exactly how they’ll pay for it.
Councilors said the blueprint, called a “term sheet,” signals the city’s serious commitment to negotiating in good faith with the Blazers new owners, whose relationship with the city has been rocky.
“This has been a difficult process,” said Councilor Elana Pirtle-Guiney, before voting to support the plan. “We have a massive decision about what to do with the city-owned space and we don’t have a good faith negotiating partner. And despite the fact that this topic has gotten enormously heated at times, I think we are in a better place there today.”
But other councilors saw a missed opportunity to start from a more powerful negotiating position.
“This is about whether this investment is worth what Portland is being asked to give up,” said Councilor Angelita Morillo, who joined Councilors Mitch Green, Tiffany Koyama Lane and Candace Avalos in voting against the term sheet. “For me, I still needed to see more. The public is getting fleeced. And for anyone to act like it is mature to push this forward without doing our due diligence is not doing their due diligence.”
All images: Eli Imadali / OPB.
This attitude was reflected in council chambers, where roughly a dozen audience members held up signs reading “no bailouts for billionaires,” a nod to the Blazers’ new billionaire owner Tom Dundon. Outside City Hall, several protesters shouted criticisms through a loudspeaker, occasionally interrupting the meeting inside.
The vote followed months of disagreement over how to spend public money on the aging city-owned arena, a debate underscored by the looming fear of losing the Blazers if a financing deal failed.
The conversation began months ago, when Blazers lobbyists made clear to the state Legislature that it needed to see a roughly $600 million public investment in renovating the Moda Center. State lawmakers agreed to commit $365 million in state bonds, on the condition that Multnomah County and Portland pitched in. The county approved a $101 million package last week.
The city’s term sheet commits $120 million of dollars up front and up to $275 million for ongoing maintenance over the 20-year lease. In exchange for that investment, councilors want a commitment from the Blazers to remain in Portland for the duration of the lease. The term sheet also asks for a $3 million annual fee to recoup property taxes the Blazers won’t pay on the public building, a requirement that the team allows Moda staff to unionize, $3.2 million in yearly rent, and other community benefits.
Deputy City Administrator Donnie Oliveira said these terms shouldn’t be seen as either “a ceiling or a floor” to the city’s talks with the Blazers. Carl Hirsch, a managing partner at Stafford Sports who the city hired to lead negotiations, said it was just a framework to begin negotiations.
“I assume there will be a lot of push and pull on a lot of these different issues,” he said. “I think everything is really on the table once we get to the table. And this just gets us to the table.”
The city had expected the term sheet would reflect more of the Blazers’ interests and plans for renovations. But city leaders say the team has not responded to their many requests for information and engagement over the past few months. The Blazers say their hesitation was stoked by a vague threat of litigation made by Councilor Steve Novick in June. Mayor Keith Wilson confirmed publicly last month that the city does not intend to sue the Blazers.
Portland Mayor Keith Wilson, center left, looks to his computer.
Eli Imadali / OPB
The Blazers previously called any ask for private investment in renovations a “non-starter.” At a July council meeting, Trail Blazers President of Business Operations Dewayne Hankins said the team has already invested enough in the building by constructing it in the first place three decades ago.
“That often doesn’t get talked about,” Hankins said. “Going forward, in order for this deal to make sense, the contribution needs to come from the public sector.”
In a statement emailed to OPB after Wednesday’s council vote, Hankins said there is still much work to be done to strike a deal with the city.
“Our goal remains the same,” Hankins said. “To reach a deal that allows the Trail Blazers to succeed on the court and as a business, supports a thriving Portland economy, and creates a path for the team to remain in Portland for decades to come.”
It’s still not clear how the city will pay its share of the project.
Wilson has previously suggested using the estimated $50 million in tax proceeds from the team’s sale to cover a portion of the bill. He’s also proposed tapping two other revenue streams to cover the rest: the Portland Clean Energy Fund and a fund within Prosper Portland, the city’s economic development bureau.
But the PCEF and Prosper boards must first review a proposed spending plan before green-lighting that money. And they say the Blazers haven’t shared renovation plans, making it impossible to approve funds.
Not knowing how the city will cover this cost gave several councilors pause Wednesday.
A foam finger, commonly waved by fans at basketball games, decorates Portland District 2 Councilor Dan Ryan’s desk during the meeting.
Eli Imadali / OPB
Councilors Sameer Kanal and Morillo pushed for an amendment that would require city negotiators inform councilors of the proposed spending plan at least 15 days before councilors are expected to vote on the final lease agreement in December.
“It makes it clear to the public that our expectation is to have enough information and time to make serious decisions about serious matters, like whether or not to use restricted funding,” he said.
That proposal failed.
Wednesday’s vote comes after a bruising budget year, where councilors were forced to cut jobs and city programs to make up for a $170 million revenue gap.
Councilors in favor of the term sheet have argued that any investment in the city-owned arena will only grow city coffers, through the possibility of increased property, tourism and business taxes linked to arena activity.
“This agreement protects the city’s interests, secures our professional sports future, and it provides the spark needed for the next chapter of Portland’s downtown recovery,” said Councilor Loretta Smith.
But others pointed to the lack of quantifiable data to back this up.
“I’m sent here to protect taxpayer funds and fight for our communities,” said Green. “Some of you have uncritically accepted claims of economic development that just aren’t there.”
Council President Jamie Dunphy said he expects negotiations between the Blazers and city representatives to wrap by early December, when the agreement will come to a final council vote. Before casting his final vote in favor, Dunphy set the public’s expectations for next steps.
“This is the city’s opening proposal,” he said. “A very dense three months are ahead for our team. If our partners choose to engage, things will move quickly.”
