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After months of public disagreement, the Portland Trail Blazers and the City of Portland finally have a framework to negotiate from.
Now comes the hard part.
Portland City Council voted 8-4 Wednesday to approve a term sheet outlining the city's opening position for negotiations over a new long-term Moda Center lease, according to OPB's Alex Zielinski.
The vote also commits the council to providing $120 million toward renovations of the city-owned arena, though exactly where that money will come from remains unresolved.
And there's plenty more for the Blazers and city to work through.
Portland's approved term sheet calls for up to $275 million in ongoing maintenance over a proposed 20-year lease. In exchange, the city wants the Blazers to remain in Portland for the duration of the agreement.
The city is also asking for $3.2 million in annual rent and a $3 million yearly fee intended to offset property taxes the Blazers don't pay on the publicly owned building.
But those numbers aren't final.
"This is the city's opening proposal," City Council President Jamie Dunphy said.
Deputy City Administrator Donnie Oliveira similarly cautioned against treating the provisions as either a "ceiling or a floor," while lead negotiator Carl Hirsch said he expects considerable "push and pull" once negotiations actually begin.
That distinction could become particularly important considering the Blazers' previous stance.
The organization has already described requiring private investment toward the renovations as a "non-starter." President of Business Operations Dewayne Hankins argued in July that the franchise's original investment in constructing the arena three decades ago should be accounted for and that future renovation funding needs to come from the public sector.
Hankins struck a more forward-looking tone following Wednesday's vote.
"Our goal remains the same," Hankins told OPB. "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."
The larger renovation project is approaching $600 million in public funding.
Oregon lawmakers previously committed $365 million in state bonds, contingent upon local contributions, while Multnomah County approved approximately $101 million last week. Portland's $120 million commitment would represent another major piece of that funding puzzle.
But Wednesday's vote doesn't end Portland's lengthy arena saga.
It effectively starts the next stage.
Dunphy expects negotiations to conclude in early December, when the eventual lease agreement would return to the council for a final vote.
After months spent arguing over what Portland should bring to the negotiating table, the city finally has its opening offer.
Now the Blazers get their turn.
Continue reading...
Now comes the hard part.
Portland City Council voted 8-4 Wednesday to approve a term sheet outlining the city's opening position for negotiations over a new long-term Moda Center lease, according to OPB's Alex Zielinski.
The vote also commits the council to providing $120 million toward renovations of the city-owned arena, though exactly where that money will come from remains unresolved.
And there's plenty more for the Blazers and city to work through.
Portland's approved term sheet calls for up to $275 million in ongoing maintenance over a proposed 20-year lease. In exchange, the city wants the Blazers to remain in Portland for the duration of the agreement.
The city is also asking for $3.2 million in annual rent and a $3 million yearly fee intended to offset property taxes the Blazers don't pay on the publicly owned building.
But those numbers aren't final.
"This is the city's opening proposal," City Council President Jamie Dunphy said.
Deputy City Administrator Donnie Oliveira similarly cautioned against treating the provisions as either a "ceiling or a floor," while lead negotiator Carl Hirsch said he expects considerable "push and pull" once negotiations actually begin.
That distinction could become particularly important considering the Blazers' previous stance.
The organization has already described requiring private investment toward the renovations as a "non-starter." President of Business Operations Dewayne Hankins argued in July that the franchise's original investment in constructing the arena three decades ago should be accounted for and that future renovation funding needs to come from the public sector.
Hankins struck a more forward-looking tone following Wednesday's vote.
"Our goal remains the same," Hankins told OPB. "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."
The larger renovation project is approaching $600 million in public funding.
Oregon lawmakers previously committed $365 million in state bonds, contingent upon local contributions, while Multnomah County approved approximately $101 million last week. Portland's $120 million commitment would represent another major piece of that funding puzzle.
But Wednesday's vote doesn't end Portland's lengthy arena saga.
It effectively starts the next stage.
Dunphy expects negotiations to conclude in early December, when the eventual lease agreement would return to the council for a final vote.
After months spent arguing over what Portland should bring to the negotiating table, the city finally has its opening offer.
Now the Blazers get their turn.
Continue reading...
