Trail Blazers tell council "first-class" clause must be addressed before lease talks resume

Duane Hankins, president of business operations for the Portland Trail Blazers and Rip City Management, told the Portland City Council the team needs a change in the so-called "first-class" lease language before meaningful written negotiations can continue. "I say again, the city must acknowledge that the arena is and remains in 1st class condition," Hankins said, arguing that the clause is dated and has chilled information-sharing between the parties.

Hankins said the team has invested "nearly $1,000,000,000" in the building over decades and that the bridge agreement negotiations relied on that status. He described the July term sheet as having "more than 20 material departures" from language in state legislation (SB 1501) and called the draft a "nonstarter" unless the bridge agreement is fixed. Blazers representatives also told council that anything judged outside the agreed scope of work would be subject to negotiation and that significant cost overruns for work the team requests would be paid by the team.

Councilors pressed for specificity: several members asked the Blazers to submit written redlines and identified the mayor's negotiating team as the council's proper interlocutor. The mayor and city staff reaffirmed that the mayor's team is the formal negotiating body; council's role is to give advice and consent if public funds are committed. The work session concluded with the parties agreeing to continue negotiations and public hearings and votes scheduled the week of Aug. 5–12.