While some legislators argued that it was unwise to volunteer Moda Center funding without first negotiating a lease, the Oregon House overwhelmingly passed a bill that clears the way for the state to pay for nearly two-thirds of the renovations that lawmakers hope will keep the Trail Blazers in Portland for at least two more decades.
“Some assets are worth supporting not just for what they earn, but for what they represent,” said House Majority Leader Ben Bowman, D-Tigard. “The Blazers are proof that something can be emotionally meaningful and economically strategic at the same time.”
Senate Bill 1501, which passed the Senate two days earlier, cleared the House 43 votes in support and 13 against.
The bill gives the state joint ownership over the 30-year-old arena with the city of Portland and establishes a framework for it to secure $365 million bonding over 20 years to go toward renovations that are expected to start in 2027.
That is part of an estimated $600 million remodel that would use funds from the city and state, as well as Multnomah County, while the incoming Trail Blazers ownership group, led by Tom Dundon, is not expected add additional funds.
The lack of private investment had been a major sticking point for the bill’s detractors, with Rep. Jeff Helfrich, R-Hood River, saying the Legislature gave him “political whiplash” with its attitude toward billionaires.
“It is a glaring double standard,” said Helfrich, who voted against the bill. “We call out the wealthy for not stepping up, then turn right around and hand them a massive public subsidy.”
However, Rep. Tawna D. Sanchez, a Portland Democrat whose district includes the Moda Center, said it was not a subsidy for Dundon and the rest of his ownership group, which agreed to pay $4.25 billion for the NBA franchise in August. The deal is expected to be approved by the NBA’s Board of Governors by the end of the month.
Sanchez said if the Moda Center was a house, the Trail Blazers, who operate as the arena’s anchor tenant, could be considered its furnace.
“That billionaire is not paying for the house,” she said, “he’s paying for the furnace. … We put a lot of guardrails in there, a lot of detail, to make sure he (Dundon) doesn’t rip the furnace out of our house.”
Five Democrats broke with the 37-member majority on the bill, while all but seven Republicans voted in support.
Rep. Kevin Mannix, R-Salem, called the proposal a “vision for the future of Oregon,” and lamented the negative perception people outside of the state might have of Portland.
“If we do not commit ourselves to having a renovated, modernized Moda Center,” he said, “we’re sending a negative message.”
That echoed comments by Rep. Rob Nosse, D-Portland, who said “the psychological blow to the city and the state that will occur if the Blazers leave town is not a wound or an unforced error that we need to inflict on ourselves at this time.”
Several legislators questioned the wisdom of committing to the funding without first negotiating a lease, with Rep. E. Warner Reschke, a Republican from Malin who supported the bill, calling the process “a little bit backwards.”
Rep. Ed Diehl, R-Scio, who was opposed, said it puts the state “in a more difficult negotiating position on this deal.”
However, the bonds will only be sold once a binding 20-year lease has been negotiated. Beyond that, it is not clear what overtures the incoming owner might receive from other markets if there is not the framework for a funding mechanism in place when he takes over.
Facing a lease that expires in 2030 and no guarantees of a renovation, Dundon would essentially have a green light to explore relocation.
Ultimately, the state is just taking the first step in a process that will perhaps take more than a year. Once Gov. Tina Kotek, a strong backer of the state’s effort, signs the bill, the Trail Blazers will look to the city and county to formally commit their shares of the project.
At last count, Portland Mayor Keith Wilson pledged $120 million toward upfront costs and $14 million annually to Moda Center operations, with funds expected to come from the city’s voter-approved clean-energy fund, pending council approval. Meanwhile, Multnomah County Chair Jessica Vega Pederson said last month the county was prepared to contributed a minimum of $88 million of business income tax and motor vehicle rental tax to the project.
And then there is the question of when, in fact, Dundon takes over the Blazers and can begin negotiating with the joint authority that Senate Bill 1501 established.
All of those pieces will need to fall in place in time for renovations, which would take place over three summers starting in 2027, if the project is going to meet the goal of being completed before the 2030 NCAA Women’s Final Four.
