Council splits over Moda Center term sheet after hours of amendments

The Portland City Council spent its longest agenda item of the afternoon in a divided debate over a proposed nonbinding term sheet with Rip City Management LLC and Trail Blazers Holdings LLC that would underpin a major renovation and a long-term operating and lease agreement for the Moda Center.

Council heard from city attorneys and staff about substantive edits to the term sheet — including clarification that the council will appoint members to the planned joint authority, changes to how spectator-facility revenues are treated and added references to fire-safety and WNBA standards. Donnie Olivera, deputy city administrator, told the council the negotiation framework remains a work in progress and said the city, county and state are building an intergovernmental approach to form the joint authority. "We are in the process of another term sheet with the state forming the joint authority," he said.

Councilors spent more than two hours introducing 16 amendments that ranged from financial clarifications and funding limits to community benefits and governance of the joint authority. Councilor Green framed one of the largest fiscal concerns, arguing that the term sheet as drafted effectively precommits future spectator-facility revenues and could raise the city's long-term exposure: "If we give it away now, what we have done is said, forget about $573 million — we're in it for $848 million," Green said, citing a spreadsheet he presented during debate. City negotiating staff and the mayor said the numbers discussed were frameworks and that much remained to be negotiated.

Several amendments aimed to secure a clearer return to the city: proposals sought an increase in the user fee on tickets, a larger annual property-tax-offset payment, commitments to private capital contributions and even a rent payment. Multiple proposals failed on roll call votes; similar targeted amendments also failed or split the council. "This term sheet is not a blank check," Council President Dunphy said, emphasizing the council’s role as budget authority.

Kristen Dennis, who the council asked to coordinate post-hearing work, said staff will collect the amendments and consult with the negotiating team with the intent to return to council with a package for Aug. 12. "My intent ... is to take all of the amendments that have been proposed today, talk to the team, the negotiating team about them and figure out how to integrate as many as possible into the package," she told councilors.

No final adoption occurred Friday. The council recessed its discussion for the day and scheduled further consideration and a possible final vote at the Aug. 12 meeting, which staff set as time certain for continued debate and final action.

Provenance: Topic intro at SEG 1190; topic finish at SEG 4450.