Simmering tensions about the future of the Moda Center ignited Tuesday, as Portland Mayor Keith Wilson ripped outspoken skeptics of a potential pricey arena makeover while some Multnomah County leaders questioned whether their government would get anything in return for its expected investment.
Wilson, in an open letter, doubled down on the city’s $120 million pledge for the project and his desire to use climate tax dollars to pay part of it, chastising city councilors and a prominent critic who have each panned aspects of the complex public finance deal.
Less than two hours later, the Multnomah County Board of Commissioners held its first public meeting on the county’s proposed $100 million commitment toward the renovation, with several commissioners bemoaning the lack of details about what the county would get for its nine-figure contribution.
“We have to be able to tell folks, not just people in our community, but also the employees of Multnomah County, what exactly we’re paying for,” Commissioner Shannon Singleton said.
The current proposal doesn’t include any new revenue for the county, which no longer collects property taxes on the Moda Center since it’s now owned by the city.
“What’s the ROI for this community?” said Commissioner Julia Brim-Edwards.
The statements by the mayor and county leaders underscore the fraught and uncertain path ahead in the coming weeks as Wilson and Multnomah County Chair Jessica Vega Pederson seek to lock down the local funds needed to bundle with $365 million in bonds that state lawmakers approved in March.
They also come as the new owner of the Trail Blazers, Tom Dundon, is set to headline the annual meeting of the Portland Metro Chamber at the Moda Center on Wednesday — at the same time the Portland City Council is scheduled to hold its own meeting on the estimated $600 million arena deal.
Proponents say the taxpayer funded project is essential to keep the Blazers from leaving town as city officials attempt to negotiate a new lease with the team and Dundon, a Texas billionaire. In addition to the upfront costs, Wilson has also committed an additional $280 million toward ongoing operating expenses over the next 20 years, which would make the total public subsidy close to $900 million.
Currently, neither the team nor Dundon, who led the group that purchased the Blazers for $4.25 billion in March, has said they are willing to put money toward a makeover of the 31-year-old Moda Center.
The large public price tag, lack of private investment and scant details about the renovation plans have raised questions among city and county legislators, who must ultimately approve any financial commitments by the two governments.
A number of Portland city councilors have indicated that they’re opposed to the city dipping into its cash-rich clean energy fund to help bankroll climate-friendly portions of the renovation, a sentiment that’s also shared by a majority of city voters. The city’s fund is seeded by a 1% surcharge on sales at large retailers in the city.
In his letter Tuesday, Wilson warned that the entire deal could become imperiled “if we don’t take our role seriously” and made another push for allowing climate dollars to go toward the Moda Center.
The mayor also took direct aim at councilors who have publicly criticized the project, saying that “good process means sitting down, figuring out the math and keeping the public informed and empowered every step of the way, not duking it out in the media or on Instagram.”
“Calling foul and throwing around accusations can boost re-election campaigns but we can’t wave away the very real risk of declining tax revenue, broken promises to neighborhoods and lost jobs,” Wilson wrote.
Additionally, Wilson, without naming him directly, blasted Edan Krolewicz, a Trail Blazers fan and New York resident who launched the website Rip City Not Rip Off, which has urged Portlanders to demand an arena deal that is fair to taxpayers.
“Big projects like this also attract opportunists, such as the Brooklyn-based techbro using our city’s dilemma to pitch his ‘civic engagement’ dot-com startup,” Wilson wrote.
Krolewicz, whose website has provided analyses of recent arena renovation deals around the U.S. and suggested that Portland could wind up giving away too much while getting too little in return, has become an influential source among critics, including some city councilors.
Records show that, in recent weeks, Krolewicz has also pitched Portland officials in at least two city agencies on doing work for them through his company Portland Civic Lab, which he registered in Oregon in April.
“I’m setting those proposals aside for now,” Krolewicz, who is soon moving back to Portland with his family, told The Oregonian/OregonLive in a statement Tuesday. “I’m not going to pursue city business while I’m doing public advocacy on a city deal — not because there’s anything improper about it, but because I’d rather there be no question about my motives at all. The civic-tech work will still be there when the arena conversation is resolved.”
Meanwhile, Multnomah County’s proposed $88 million capital commitment would come from two pots of money: $53 million from an existing 2.5% tax on rental cars and $35 million of the county’s expected $40 million in tax proceeds from the sale of the Blazers. The tax on rental cars backs bonds for the Oregon Convention Center that mature in 2030.
In addition, county commissioners are considering $13.6 million for Moda Center maintenance, bringing the commitment to $101.6 million, not including debt service.
County Commissioner Meghan Moyer slammed the proposed use of tax proceeds because the money could be spent on other public services. She said the county is expecting a $78 million deficit in its general fund over the next four years.
“What these funds could provide are services to our most vulnerable,” she said. “They are seniors, they are people with disabilities, they are people who cannot access health care. They are children.”
“Please, Tom Dundon,” Moyer added, “strike a fair balance.”
A representative from the Trail Blazers was scheduled to attend the commission meeting, but the organization canceled on Tuesday morning, possibly because of the start of the NBA Draft.
Several spoke unfavorably about the team’s absence. The Blazers didn’t immediately respond to an email asking why the organization didn’t attend.
“They need to be here at a future meeting,” Brim-Edwards said.
