Portland committee hears plan to end Metro operating agreement for performing arts and reviews PSU—s downtown arts campus proposal

Portland—s Arts and Economy Committee on Nov. 18 heard staff and stakeholder briefings on the future of the city—s downtown performing arts venues, including next steps to dissolve the Metro operating agreement for the Portland 5 and a presentation from Portland State University on a proposed new Performing Arts and Culture Center.

Director Charity Montez of the Office of Arts and Culture told the committee the performing arts venues work group did not endorse the current two‑government model in which the city owns the buildings and Metro operates them. The work group recommended preparing a plan to dissolve the intergovernmental agreement (IGA) while the city studies five operating scenarios, "including an existing or newly formed nonprofit, a for‑profit operator, a university partnership, in‑house city management, or multiple venue operators," Montez said.

Montez said Metro staff will present an ordinance to Metro Council authorizing the COO to enter a mutually agreed termination agreement with the city; if no mutual agreement is reached, the city would assume management under the IGA—s unilateral termination provisions (Montez described an 18‑month Metro unilateral notice timeline and a six‑month city unilateral timeline for transition). Montez also said Metro is leading facility condition assessments of the P5 buildings, with final reports expected by the end of the calendar year.

Why it matters: the Portland 5 venues (the Arlene Schnitzer Concert Hall, Keller Auditorium, Antoinette Hatfield Hall / Newmark / Winningstad / Brunish venues) together draw hundreds of thousands of attendees annually and underpin downtown cultural and economic activity. Montez warned that a 24‑month closure of Keller without an alternative Broadway‑capable site could cause nearly $100 million in lost output and hundreds of lost jobs based on 2024 figures.

PSU—s proposal and timetable

Portland State University President Anne Cudd and PSU Foundation President Sarah Suarez presented the university—s plan for a Performing Arts and Culture Center on a 4.25‑acre parcel owned by PSU. Suarez said the site is being offered "at no cost to the city" and described a vision that includes a 3,000‑seat community theater, two 200‑seat venues, classrooms and a privately owned 150‑room hotel. PSU representatives said conservative estimates put annual attendance at roughly 640,000 across the center's venues and that the build would create roughly 2,000 construction jobs and 300 permanent jobs.

PSU presenters said $137 million in state investment is already secured and "is targeted toward the academic theater and the two 200‑seat performance theaters and parking," and that the team is pursuing philanthropic, tax increment financing and other capital sources. PSU indicated a goal to complete construction and open in December 2030.

Keller renovation concept and sequencing

Representatives of the Halprin Landscape Conservancy (presented by Karen Whitman and Scott Andrews) reviewed a renovation concept for the Keller Auditorium—a roughly 40,000‑square‑foot expansion that would add lobby space, more bathrooms, new loading/backstage capacity, improved accessibility and a reimagined plaza that narrows or pilots closure of Southwest 3rd Avenue. The Conservancy cited a project budget of about 267.2 (figure discussed in the presentation) and said it plans private fundraising and polling on a potential bond measure.

Committee follow‑up and studies

City staff said two technical studies are in progress: a DKS Associates transportation study (three scenarios: Keller renovation, PSU new build, combined use) that found no ‘‘fatal flaws’’ but recommended coordination with PBOT, a lane‑closure pilot and mitigation of queuing at the Southwest 4th Avenue off‑ramp; and a Hunden Partners market feasibility study, which launched in July, surveyed more than 4,000 respondents and is expected to be completed in December. The committee set up a technical steering committee and a separate stakeholders table to review findings and provide recommendations to the city administrator by June 30, 2026, and staff said a financial plan for a Keller renovation is targeted for April 30, 2026.

Councilors sought and were promised additional materials: the full transportation study and the market feasibility results, plus case studies of alternative operating models.

What—s next: Metro Council will consider an ordinance on Nov. 20; committee members requested follow‑up briefings and written materials on transportation, phasing, liabilities and the projected city cost of any city‑owned theater. The committee will revisit the item as studies and negotiations proceed.