Full Breakdown
Portland Releases Draft Term Sheet Detailing $573 Million Public Investment in Moda Center Renovation
7/18/2026, 1:02:25 PM
Draft Term Sheet Details
The City of Portland publicly shared a 14-page “Moda Center – Arena Renovation and Post-Renovation Operations Term Sheet” that outlines the first formalized offer from local and state governments to the Trail Blazers. The draft proposes a 20-year lease in which the team would pay a payment-in-lie-of-taxes (PILOT) of $3 million per year, increasing 5 % annually, amounting to roughly $100 million over the lease term. The city would allocate $275 million for eligible capital expenses, funded through user fees, operating profit from the Veterans Memorial Coliseum, and portions of the Rose Quarter Facilities and City Tourism Support. The county’s contribution includes $13.6 million for ongoing operations in fiscal years 2027-28 and 2031-36.
Financial Commitments and Community Provisions
Beyond the PILOT, the term sheet requires Rip City Management to handle year-round arena operations, including scheduling, maintenance, concessions, security, and utilities, while adhering to NBA standards. Labor provisions call for prevailing-wage construction contracts, labor-peace agreements, and local-hiring preferences. Community access is mandated with at least ten rent-free events annually and affordable concession pricing. The draft does not yet contain a detailed budget for the $573 million renovation; an exhibit notes the budget will be added later.
Council Reaction and Process Concerns
Councilor Mitch Green warned that the document is not a final council term sheet, emphasizing that “what the Blazers received today is not a term sheet from Council. That will be the product of a resolution that Council will consider, debate, amend and adopt.” He criticized the framing of the draft as a final policy, stating it is “extremely misleading to paint the process this way, especially since executive sessions are not the place to develop policy direction from Council.” The draft’s release precedes a scheduled council vote on August 12 to finalize a term sheet for negotiations.
Verbatim Quotes
- “It also outlines the government’s request that the Blazers commit to a payment in lieu of taxes amounting to $3 million per year, escalating 5% annually over the life of the deal.” — Draft Term Sheet
- “will be responsible for the management, operation, and maintenance of the Arena on a year-round basis, including scheduling and hosting of events, planning for and performing maintenance and repairs, concessions and ancillary activities, cleaning, security, and utilities, and will implement and adhere to a quality operations standard consistent with Comparable Facilities and in compliance with NBA requirements.” — Draft Term Sheet
- “It also requests community access to Moda, including no less than 10 community events annually, with no rent required to host the events and affordable concession pricing options.” — Draft Term Sheet
- “I want to be clear that what the Blazers received today is not a term sheet from Council. That will be the product of a resolution that Council will consider, debate, amend and adopt. What they received today was the same draft that we received after initial reactions in executive session,” — Mitch Green, Portland City Councilor
- “It’s extremely misleading to paint the process this way, especially since executive sessions are not the place to develop policy direction from Council,” — Mitch Green, Portland City Councilor
