The City Council has increased the stakes in the high-risk negotiations with new Portland Trail Blazer owner Tom Dundon about keeping the team in town for at least 20 more years.
The Council voted to increase the cost of continuing to lease the Moda Center to $6 million a year on Aug. 12, among other things. Agreeing to a new 20-year lease would allow Dundon to tap $600 million in state and local funds to upgrade the North Portland area.
“Portland is an incredible city. We are culturally vibrant, we have the best audiences in the country, our incredible natural beauty provides the backdrop to the best quality of life in the nation This city is a value proposition. It is also a place with values. We move forward from both. I am certain that our greatest chapter is ahead of us, and I hope that the Blazers are a part of that future,” Council President and District 1 Councilor Jamie Dunphy said after the vote.
The City owns the Moda Center. When Dundon, a Texas millionaire, and his team of investors bought the Blazers for $4.25 million from the Allen family, they inherited a lease with no rent or in lieu of property tax payments. The City first proposed they pay $3 million a year in lieu of property taxes.
Just before the Council hearing, the City proposed an additional $2 million a year rent payment. The Council increased that to $3 million when approving its proposed lease terms on Aug. 12,
Dundon’s current lease ends in 2030, after which he can move the team to another city. He also has the option of extending the existing lese for five years, giving him up to eight with years without making any additional payments to the City.
The 2026 Oregon Legislature approved a $600 million funding package to bring the aging Center up to current National Basketball Association standards to keep the Blazers in Portland. It includes $365 million in state bond funds, $120 million from Portland, and $100 million from Multnomah County. The County Commission reaffirmed its share on Aug. 7.
Portland’s negotiations with the Blazers are being conducted by a team led by Mayor Keith Wilson. The lease terms approved by the Council on Aug. 12 are not binding, but an expression of what the Councilors want to approve in the negotiated the lease.
“I’m grateful to my colleagues on the Portland City Council for approving this initial term agreement, which allows us to begin the hard negotiation work needed to secure a fair deal that benefits the City of Portland, the Trail Blazers, and our community,” Wilson said after the vote.
“T”he State of Oregon has already committed more than two‑thirds of the capital funding required to renovate the Moda Center — a City‑owned asset — and keep it a world‑class venue. Now it’s up to us to work with our negotiating team and bring this across the finish line,” he said.
The vote was 8-to-4. Those voting “no” were self-declared progressive Councilors Angelita Morillo, Candace Avalos, Mitch Green and Tiffany Koyama Lane.
The City hopes the Council will finalize the lease by Dec. 17.
Although officials with the Blazers had reportedly called the first term sheet released to the public a “non-starter,” President of Business Operations Dewayne Hankins struck a more conciliatory note in a statement released after the Council vote:
“I want to thank Mayor Wilson, Council President Dunphy and the City Council for their efforts to this point. We appreciate today’s actions and acknowledge there is still meaningful work ahead as we continue negotiations.
“Our goal remains the same: to reach a deal that allows the Trail Blazers to succeed on the court and as a business, supports a thriving Portland economy, and creates a path for the team to remain in Portland for decades to come,” Hankins said.
This is a developing story and will be updated on northportlandreview.com.