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Senate approves bill to fund Moda Center renovations, with taxpayer safeguards
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Summary
The Oregon Senate passed SB 1501 to create the Oregon Arena Fund and authorize debt to support a ~ $365 million renovation of the Moda Center, while adding guardrails requiring a joint authority, city/county commitments and a 20‑year anchor-tenant lease before bonds are sold.
The Oregon State Senate voted to pass Senate Bill 15‑01 B on March 4, authorizing the creation of an Oregon Arena Fund and laying groundwork for state participation in a renovation of the Moda Center (the Motor Center) in Portland.
The measure establishes a dedicated fund to receive certain tax revenues, authorizes procedures for issuing bonds intended to yield roughly $365,000,000 in net proceeds for construction and renovation, and appropriates $1,500,000 from the general fund for legal, consulting and project management work related to forming a joint authority to own and operate the arena. The bill also earmarks $211,985 to support a permanent position (0.63 FTE) tied to joint‑authority work and related services.
Senators supporting the bill framed the measure as an economic and cultural investment. The presiding officer said the bill is a first step toward “renovating Oregon’s arena into a world class destination for concerts, festivals and sporting events,” and stressed protections added during amendment work to limit taxpayer exposure. Proponents pointed to statewide economic activity tied to the Rose Quarter and to the desire to keep the team and major events in Portland.
Opponents cautioned against direct subsidies for private franchises, citing academic research that questions the statewide economic benefits of public financing for sports venues. Several senators pressed for strict conditions before any state bonds are sold.
The final, amended bill contains multiple safeguards: bonds cannot be sold until (1) a change in ownership is finalized and approved by the NBA where required, (2) a joint authority for ownership and operations is established and approved, (3) the joint authority has approved the scope, schedule and budget for the renovations, and (4) the city of Portland and Multnomah County have made binding, substantial commitments to help finance construction and maintenance. The legislation also requires an acceptable minimum 20‑year lease with the anchor tenant before bond sales, and authorizes legal remedies (injunctive relief and liquidated damages) for breach of contract.
On final passage, the roll call reached a constitutional majority and the clerk declared SB 1501 B passed. The Senate advanced numerous concurrence items and other house measures afterward.
The next steps are for the joint authority and local partners to negotiate the final agreements the bill requires; the provisions in the bill bar state bond issuance until those conditions are satisfied.
