The Portland Trail Blazers and the city of Portland remain significantly apart over public funding for renovations to the Moda Center, according to a team source. The disagreement centers on a term sheet the city sent Friday outlining a proposed 20-year lease agreement.
"I think we are very far apart," said the source, one of two Blazers officials granted anonymity to discuss the situation.
Under the proposed terms, the Blazers would receive $600 million in public funding in exchange for paying $3 million annually toward a property tax offset, an amount that would increase over time. The deal would also require the team to hire union workers and accept caps on cost overruns.
"The term sheet is a non-starter," said the source. "I don't know why they sent it to us, because they know very little of the stuff we would agree to. They are playing politics at this point."
The Blazers' board is scheduled to meet Monday to determine next steps. The city plans to vote on the funding package Aug. 12, with an agreement needing to be finalized by Dec. 31 to preserve $365 million in committed state funding.
The team's lease at the Moda Center runs through 2030, adding uncertainty about whether new owner Tom Dundon might eventually consider relocating the franchise. Two high-ranking Blazers sources said Dundon has never raised that possibility.
"No one with the Blazers has ever said we want to move," said a team source. "We don't want that. We want to stay in Portland."
Tensions have grown between the organization and city officials, with some council members accusing the Blazers of withholding renovation details. City councilor Mitch Green criticized the team's approach.
"I think the Blazers have been behaving poorly," said Green. "They thought because they passed the state legislature that the deal was done. But we have a set of councilors who are asking tough questions."
The Blazers maintain their reluctance to share detailed plans stems from the early-stage nature of their renovation concepts and lingering frustration over a June threat from councilor Steve Novick to sue the team over the arena's condition.
"We don't even want to respond to the term sheet until they remove that gun to our head," said a source.
Renovation concepts under consideration include a new north-side atrium entrance, additional kitchens across the arena's three levels, and updated club-level seating.
Green said the council needs greater clarity before moving forward.
"We need to see a scope and scale of what this money is paying for," said Green. "You've got a city council that is not a rubber-stamp council... those are the conditions (the Blazers) face."
The Blazers believed they had reached an agreement in March after securing the state's $365 million commitment, contingent on the city releasing $120 million and Multnomah County contributing $88 million. A second Blazers source expressed frustration with how the situation has evolved.
"They have made this a bit of a political football," said the source. "They're asking for things that change the deal dramatically."
City spokesman Elliott Kozuch confirmed momentum existed in March but said formal council approval was always required beyond an initial understanding, adding that the Blazers have shared only high-level concepts so far.
A Blazers source said the team has begun studying other recent NBA arena deals and may push for improved terms going forward.
"The city's delay has given us time to study what a market deal is," said the source. "The $600 million deal that was supposed to be done six months ago was a way-below-market deal."
Green said he remains unmoved by the possibility of relocation.
"If he moves the team, it's because he thinks he can get a better deal," said Green. "Right now, it's a matter of $120 million. If Dundon came out today and said 'I'm gonna pick up the tab on the $120 [million]'... that would probably get us to the finish line tomorrow."
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