- Joined
- May 8, 2002
- Posts
- 1,270,412
- Reaction score
- 59
The Portland Trail Blazers have spent months making one part of their Moda Center position particularly clear.
They don't believe funding the arena's base renovation should be their responsibility.
President of Business Operations Dewayne Hankins previously described another private contribution from the franchise as a "non-starter," pointing toward the money ownership invested in constructing the arena three decades ago.
Portland's elected officials haven't universally agreed.
But after weeks of debate, three separate public entities have now committed or proposed substantial public funding toward the renovation.
Oregon lawmakers previously authorized up to $365 million in state-backed funding toward the project. Multnomah County followed with up to $101.6 million, and Portland City Council approved another $120 million Wednesday.
That's enough to cover the approximately $573 million public portion of the base renovation budget outlined in Portland's latest term sheet, assuming each contribution ultimately materializes as contemplated.
And that makes what happens next particularly interesting.
Because if the Blazers' biggest problem with Portland's previous proposals was who pays for the renovation, the public sector has come remarkably close to answering it.
That doesn't mean the two sides suddenly agree.
Far from it.
The term sheet Portland approved Wednesday is explicitly nonbinding, and several provisions could still create considerable disagreement once negotiations produce definitive agreements.
The city is seeking approximately $3.2 million in annual rent and another $3 million yearly payment intended to offset property taxes, while the framework would leave Rip City responsible for renovation costs not covered by the public contribution, including overruns and funding gaps.
Those aren't insignificant details.
They're also about to receive considerably more attention.
KATU reported Friday that representatives from the Blazers and city will meet twice per week, and more frequently when necessary, while attempting to reach a long-term agreement.
The sides have already been meeting for several months, but city officials expect more progress now that Wednesday's vote has established Portland's formal negotiating position.
That's where this saga becomes considerably more revealing.
For months, the disagreement has largely played out through competing proposals, public statements and debates over how much taxpayers should contribute toward a city-owned arena.
Now there are actual numbers on the table.
And importantly, the public contribution toward the base renovation is approaching what the Blazers have sought.
The city's current framework doesn't require the franchise to make a predetermined contribution toward that $573 million public portion. Instead, Rip City would be responsible for renovation expenses beyond the agreed public contribution.
That distinction doesn't guarantee a deal.
The Blazers still have to decide whether Portland's requested rent, tax-offset payments and other lease provisions make financial sense. The city similarly has to determine how much it's willing to concede after proposing substantial public resources for the project.
But the negotiations should finally provide an answer that months of public debate couldn't.
Was public renovation funding the issue separating Portland and the Blazers?
Or merely the biggest one?
The state, county and city have moved remarkably close to assembling the public financing contemplated for the base Moda Center renovation.
What the Blazers push for next could tell us considerably more about what it will actually take to keep them there.
Continue reading...
They don't believe funding the arena's base renovation should be their responsibility.
President of Business Operations Dewayne Hankins previously described another private contribution from the franchise as a "non-starter," pointing toward the money ownership invested in constructing the arena three decades ago.
Portland's elected officials haven't universally agreed.
But after weeks of debate, three separate public entities have now committed or proposed substantial public funding toward the renovation.
Oregon lawmakers previously authorized up to $365 million in state-backed funding toward the project. Multnomah County followed with up to $101.6 million, and Portland City Council approved another $120 million Wednesday.
That's enough to cover the approximately $573 million public portion of the base renovation budget outlined in Portland's latest term sheet, assuming each contribution ultimately materializes as contemplated.
And that makes what happens next particularly interesting.
Because if the Blazers' biggest problem with Portland's previous proposals was who pays for the renovation, the public sector has come remarkably close to answering it.
That doesn't mean the two sides suddenly agree.
Far from it.
The term sheet Portland approved Wednesday is explicitly nonbinding, and several provisions could still create considerable disagreement once negotiations produce definitive agreements.
The city is seeking approximately $3.2 million in annual rent and another $3 million yearly payment intended to offset property taxes, while the framework would leave Rip City responsible for renovation costs not covered by the public contribution, including overruns and funding gaps.
Those aren't insignificant details.
They're also about to receive considerably more attention.
KATU reported Friday that representatives from the Blazers and city will meet twice per week, and more frequently when necessary, while attempting to reach a long-term agreement.
The sides have already been meeting for several months, but city officials expect more progress now that Wednesday's vote has established Portland's formal negotiating position.
That's where this saga becomes considerably more revealing.
For months, the disagreement has largely played out through competing proposals, public statements and debates over how much taxpayers should contribute toward a city-owned arena.
Now there are actual numbers on the table.
And importantly, the public contribution toward the base renovation is approaching what the Blazers have sought.
The city's current framework doesn't require the franchise to make a predetermined contribution toward that $573 million public portion. Instead, Rip City would be responsible for renovation expenses beyond the agreed public contribution.
That distinction doesn't guarantee a deal.
The Blazers still have to decide whether Portland's requested rent, tax-offset payments and other lease provisions make financial sense. The city similarly has to determine how much it's willing to concede after proposing substantial public resources for the project.
But the negotiations should finally provide an answer that months of public debate couldn't.
Was public renovation funding the issue separating Portland and the Blazers?
Or merely the biggest one?
The state, county and city have moved remarkably close to assembling the public financing contemplated for the base Moda Center renovation.
What the Blazers push for next could tell us considerably more about what it will actually take to keep them there.
Continue reading...
