Could Portland lose its beloved Trail Blazers? The future of the NBA franchise is a hot topic, and even the state's governor has been actively involved in discussions. Governor Tina Kotek has revealed she's been in communication with Tom Dundon, the incoming owner of the Portland Trail Blazers, as speculation about the team's relocation continues to swirl.
Governor Kotek shared that she and Mr. Dundon have been focused on building a rapport and understanding how they can collaborate effectively. Her initial impression of him? "He's a very straightforward guy," she stated.
This engagement comes at a critical juncture. A group led by Dundon has a preliminary agreement to acquire the Portland NBA team from the Paul Allen estate for a staggering $4.25 billion. The deal is anticipated to receive approval from the NBA's Board of Governors this spring. However, the intentions of the Texas billionaire remain somewhat veiled, or at least, heavily contingent on the extent to which local governments are willing to contribute financially to a renovation of the Moda Center.
Governor Kotek expressed her appreciation for Dundon's candor. "At the end of the day, he's a businessman," she told The Oregonian/OregonLive. "I don't think he's come into this with the idea that he wants to move the team. He wants a deal that makes this work for the team, and I think that's where we're headed."
To that end, Governor Kotek recently spearheaded a significant effort in Salem. She, alongside a group of public officials and business leaders, rallied in support of Senate Bill 1501 before the Senate Rules Committee. This bill aims to create a framework for redirecting public funds towards a substantial $600 million renovation project for the Moda Center. Advocates see this as a crucial, proactive step to secure a new, long-term lease for the Trail Blazers at their current home. The existing "bridge" agreement only extends to 2030, and passing this bill before Dundon's ownership is finalized could potentially remove any incentive for the owner of the Carolina Hurricanes to explore relocation options.
But here's where it gets controversial... House Majority Leader Ben Bowman drew a stark parallel, warning the committee, "If we let the Blazers slip away just like Seattle did with the SuperSonics, there will be cities lining up. Investing in an institution like this, it's not about nostalgia. It's about foresight."
Governor Kotek also recently conferred with NBA Commissioner Adam Silver. She, along with Portland Mayor Keith Wilson, has emphasized to the NBA their unwavering commitment to keeping the Trail Blazers in Portland. While Kotek hasn't received a definitive guarantee from Silver that the proposed $600 million package will entirely eliminate relocation concerns, she noted, "What I've heard from Adam is that we're in the ballpark. And I'm taking that on good faith that this is a real proposal to get to the modern facility that the Blazers' need." She added that Commissioner Silver is a "big fan of Portland and the Blazers" and encouraged them to "keep pushing."
Senate Bill 1501, introduced by Senate President Rob Wagner, has become a high-priority item for Democratic lawmakers during the current short legislative session, which concludes on March 8th. This session is already grappling with a considerable budget shortfall, as well as pressing issues like transportation and immigration.
Senator Kate Lieber, who chairs the influential Ways and Means Committee, clarified that Senate Bill 1501 is intended as a "first step," with a bonding bill requiring further legislative consideration later on. "Unless we take the first step," she remarked, "we're never going to get to the next 20."
The state's contribution to the Moda Center project is part of a broader collaborative effort involving the city of Portland and Multnomah County. Wagner's bill would empower the state to work with the city on negotiating a new long-term lease with the Trail Blazers. This agreement would involve redirecting income taxes generated by Trail Blazers players and other performers at the city-owned venue to finance bonds supporting the renovation. The goal is to establish a 20-year lease, aligning with the projected timeframe for repaying these bonds.
While this proposal entails redirecting tax revenue that would normally flow into the general fund, Governor Kotek argued that taxpayers shouldn't perceive this as a "tradeoff situation." She asserted, "Economic development and investments for the future are never a zero-sum game. Supporting a modernized Moda arena is good for the Blazers, good for economic activity, good for the city." She further emphasized, "This has to be a good deal for Oregon, and I think a good deal for Oregon is a good deal for the Blazers, as well."
Beyond Trail Blazers games, the Moda Center is a vibrant hub, hosting over 230 events annually and supporting approximately 4,500 jobs. Notably, the venue is slated to host the 2030 NCAA Women's Final Four, an event SportOregon CEO Jim Etzel described as "the largest sporting event that the city of Portland has ever hosted."
During the hearing, Multnomah County Chair Jessica Vega Pederson announced the county's commitment to contribute $88 million to the project, an increase from their previous pledge of $77 million, utilizing funds from their motor vehicle rental tax and business income tax.
Mayor Keith Wilson stated that the city would provide $120 million for upfront costs and an additional $14 million annually. However, in the wake of some City Hall skepticism regarding a recent report about Portland leaders exploring the use of the city's lucrative clean energy fund for the project, Wilson was hesitant to detail the exact funding mechanisms for the city's share. He mentioned having "placeholder" numbers for the council and pointed to potential revenue from ticket and parking fees at Moda Center events.
And this is the part most people miss... Senator Bruce Starr, a vice-chair of the Rules Committee and Senate Minority Leader, questioned Trail Blazers president Dewayne Hankins about the rationale behind the Moda Center plan. Starr pointed out that the original Rose Garden (now Moda Center) was built in 1995 with significantly less public investment and secured a 30-year lease. He wondered why, if the building is to be renovated entirely with public funds, the team would only commit to a shorter period.
Hankins explained that modern arenas are designed for a lifespan of approximately 50 years, making a 30-year lease for a renovated facility impractical for the team. "The work that has to be done to the building we believe can sustain (it) for the next 20 years," he stated.
Senator Starr, a Republican, then inquired about the extent to which the Trail Blazers had explored the possibility of constructing an entirely new arena, which would offer a five-decade lifespan instead of just two. Hankins responded, "In reality, a new building would be twice as much (money). We thought the responsible thing was to do a renovation."
What are your thoughts? Is this a responsible use of public funds to keep the Trail Blazers in Portland? Or is it a short-sighted investment that doesn't secure the team's long-term future in the city? Share your opinions in the comments below!
