City leaders refused to strike a "first-class" maintenance clause from the current lease, stalling negotiations over a massive renovation and the franchise’s long-term future in Oregon.
Portland has answered the Trail Blazers’ request to remove a potential source of litigation from their current Moda Center lease.
The answer is no.
During Thursday’s City Council work session, city leaders rejected the organization’s demand to reopen its existing agreement and eliminate a provision requiring Rip City Management to maintain the arena in “first-class” condition.
As we've previously covered, the clause could allow Portland to pursue compensation for repairs if the Blazers leave the city and return the publicly owned arena in substandard condition.
Blazers officials argued Thursday that uncertainty surrounding the provision has stalled negotiations over a proposed $573 million renovation and potential 20-year lease.
“The first-class standard has been wielded as a weapon, chilling our negotiations,” Trail Blazers president of business operations Dewayne Hankins said, according to KGW.
The organization wants Portland either to remove the language or formally acknowledge that the Moda Center currently satisfies the standard.
City Council President Jamie Dunphy declined.
“The City of Portland is not looking to relitigate existing contracts,” Dunphy said. “We are only interested in having that new conversation about the next phase of our agreement.”
Mayor Keith Wilson also said Portland is not contemplating a lawsuit against the Blazers or Rip City Management. However, he saw no reason to modify the current bridge agreement before negotiating a long-term deal.
That leaves the two sides in a peculiar position.
Portland says it doesn’t intend to sue. The Blazers say that assurance isn’t sufficient because the contractual option remains available.
Team officials also maintained that the arena has no maintenance backlog. Hankins argued the requested renovation would modernize the Moda Center beyond its existing configuration rather than correct a failure to keep it operational.
That distinction matters.
The Blazers are seeking public funding for upgrades that include a redesigned entrance, updated seating and concourses, premium spaces and extensive work to the building’s infrastructure. Portland officials have repeatedly asked for additional details explaining how the money would be spent.
“We need the details if we’re going to be able to approve what we’re spending,” Dunphy said. “We need to know what we’re buying.”
The disagreement over the lease clause adds another obstacle before the City Council’s scheduled Aug. 12 vote on its proposed term sheet.
Portland has offered $120 million toward construction and as much as $275 million for maintenance over a potential 20-year agreement. State lawmakers approved up to $365 million, while Multnomah County is considering a separate contribution.
Those commitments depend on the Blazers signing a long-term lease.
For now, the organization says meaningful negotiations cannot resume until the “first-class” issue is resolved.
Portland has made clear it won’t resolve that issue by surrendering its existing protection first.
