Portland City Council voted 8-4 to kick off the city’s negotiations with the Portland Trail Blazers today, approving a blueprint for hashing out a long-term lease with the team. The vote also pledges councilors’ commitment to spending $120 million on renovating the Moda Center, despite not knowing exactly how they’ll pay for it.

Councilors said the blueprint, called a “term sheet,” signals the city’s serious commitment to negotiating in good faith with the Blazers’ new owners, whose relationship with the city has been rocky.

“This has been a difficult process,” said Councilor Elana Pirtle-Guiney, before voting to support the plan. “We have a massive decision about what to do with the city-owned space and we don’t have a good faith negotiating partner. And despite the fact that this topic has gotten enormously heated at times, I think we are in a better place there today.”

But other councilors saw a missed opportunity to start from a more powerful negotiating position.

“This is about whether this investment is worth what Portland is being asked to give up to make it,” said Councilor Angelita Morillo. “For me, I still needed to see more.”

This attitude was reflected in council chambers, where roughly a dozen audience members held up signs reading “no bailouts for billionaires,” a nod to the Blazers’ new billionaire owner, Tom Dundon. Outside City Hall, several protesters shouted criticisms through a loudspeaker, occasionally interrupting the meeting inside.

The vote followed months of disagreement over how to spend public money on the aging city-owned arena, a debate underscored by the looming fear of losing the Blazers if a financing deal failed.

The conversation began months ago, when Blazers lobbyists made clear to the state Legislature that it needed to see a roughly $600 million public investment in renovating the Moda Center. State lawmakers agreed to commit $365 million in state bonds, on the condition that Multnomah County and Portland pitched in. The county approved a $101 million package last week.

The city’s term sheet commits $120 million up front and up to $275 million for ongoing maintenance over the 20-year lease. In exchange for that investment, councilors want a commitment from the Blazers to remain in Portland for the duration of the lease. The term sheet also asks for a $3 million annual fee to recoup property taxes the Blazers won’t pay on the public building, a requirement that the team allows Moda staff to unionize, $3.1 million in yearly rent, and other community benefits.

The city had expected the term sheet would reflect more of the Blazers’ interests and plans for renovations. But city leaders say the team has not responded to their many requests for information and engagement over the past few months. The Blazers have said their hesitation was stoked by a vague threat of litigation made by Councilor Steve Novick in June. Mayor Keith Wilson confirmed publicly last month that the city does not intend to sue the Blazers.

Trail Blazers officials did not immediately respond to a request for comment Wednesday.

Councilors expect to vote on a final deal by the end of the year.

This story will be updated.

News Source : https://www.opb.org/article/2026/08/12/portland-city-council-approves-moda-center-renovations-term-sheet/