Full Breakdown
Trail Blazers and Portland City Clash Over Moda Center Renovation Terms
8/5/2026, 5:32:58 PM
Core Dispute Over Written Responses
Internal emails obtained by KATU show that after city attorney Ken McGair sent seven written questions following an in-person negotiating session on June 15, Portland Trail Blazers leaders debated whether to answer in writing. President of Business Operations Dewayne Hankins called the request “a trap,” and the team ultimately did not provide a written response, although a team source says the questions were answered verbally during negotiations.
Background of the $600 Million Renovation
The arena’s roughly $600 million renovation is funded largely by public money, with the city controlling the Spectator Venues Fund (derived from ticket taxes and parking revenue). On April 6 the Blazers asked the city to release funds early for architectural and pre-construction work; the city declined on April 22, offering instead a 50-50 split of those costs or a Letter of Intent that would make the expenses reimbursable if a long-term lease were signed. The city’s later term sheet, released in July, departed from the state’s funding framework, prompting the team to label it a “non-starter” with at least 20 points of contention.
Official Statements & Responses
The Blazers issued a statement asserting they “never left the negotiating table,” that the city’s written requests were met with verbal answers, and that the July draft term sheet was shared with the team only after it had been made public. City attorney McGair later wrote that the city would not waive its right to litigation if a new lease were not reached, but offered to ensure any renovation-related information would be excluded from future lawsuits. Councilor Steve Novick publicly floated a possible lawsuit during a June 24 work session, a move the team says chilled negotiations.
Verbatim Quotes
- “The other new thing is they are now asking for us to formally respond to their letter response about giving us money this summer. Even though last week Ken [McGair] said he understood our position and he was going to respond to our discussion with a new response regarding us getting money this summer for architects / projects,” — Joe Loomis
- “We’re still weighing whether or not to send a written response, but wanted to start thinking about our messaging around these questions regardless, as they’re likely to come up after the work sessions next week as well,” — Charles Boyle
- “It seems this can be easily achieved through an agreement that any scope provided for renovation will not be used in or admissible for the calculation of damages or the determination of liability in any future litigation related to enforcement of the current obligations under the [arena operating lease].” — Ken McGair, after city attorney
- “The City and [Rip City Management] will agree to negotiate a new benchmarked ongoing maintenance and capex standard and operator responsibility in any future lease and development agreement associated with a renovation,” — Ken McGair, after city attorney
What’s Next
Portland City Council is scheduled to vote on a final term sheet on August 12. Both the city and the Blazers have said the goal is to finalize a long-term arena agreement by the end of the year.
