Portland Issues Draft Term Sheet to Keep Trail Blazers for 20 Years

Portland’s Draft Terms and the 20-Year Lease Proposal

City leaders formally delivered a draft term sheet to the Trail Blazers this week, aiming to secure a long-term future for the NBA franchise in Portland. According to reporting by KATU, the document outlines the city’s financial commitments, its requests for the team, and other details necessary for a long-term lease. A central pillar of the proposal is a binding 20-year non-relocation commitment, which would require the team to play all home games at the city-owned Moda Center.

The draft also includes a financial framework intended to protect public interests. This includes caps on public funding, defined limits on eligible expenses, and safeguards to protect the City, State, and County against potential cost overruns. Furthermore, the city has proposed a $3 million annual property tax offset payment from Rip City Management, an amount that would escalate over time with the proceeds shared among the City, County, and Portland Public Schools. Beyond financial terms, the proposal requires labor-peace agreements to support a stable workforce, as well as commitments for community event access, local hiring, sustainability standards, and partnerships with Albina-based organizations.

Negotiation Friction and Information Gaps

Mayor Keith Wilson recently accused the team of withholding critical design and financial information necessary to move the project forward. As KPTV reported, the coalition We Are Rip City has stated that the city must finalize an agreement by December 17 or $365 million already committed by the State of Oregon could expire.

City administrator Raymond Lee addressed the difficulty of these discussions following an executive session, noting that the city had previously struggled to get the necessary data from the team. “When you get into these type of negotiations, they’re tough. Yes, the city has asked and requested certain information from the Blazers and we have not received that. We’ve had communication with the Blazers and had verbal conversations with the Blazers. That’s what has taken place thus far,” Lee said.

Lee expressed hope that the delivery of a formal term sheet would finally unlock the information-sharing required to build a long-term deal. “I believe the Blazers are waiting on a term sheet before they really start opening up into negotiations with us and start getting some of that critical information that we would want to see on our end as it relates to building out a deal with the Blazers that will be long-term for the city and the Blazers,” he added.

Team Response and the Path to an Agreement

The Trail Blazers have acknowledged receipt of the document and have begun a review process. Team spokesperson Charles Boyle confirmed the team’s willingness to engage in the process, while emphasizing that the project is already backed by a state-approved framework. I can confirm we received a draft term sheet this afternoon, and we’re reviewing the document now, a team spokesperson said.

The City has more information than state leaders had during the legislative session. The Trail Blazers are ready to begin formal negotiations immediately using the framework set for us by SB1501 and the $365 million already made available for this project. However, the parties must reach an agreement this year. We share the City’s sense of urgency. The next step is for the City to bring a term sheet to the table. Boyle

While the city prepares for a potential council vote on August 12 to approve a tentative term sheet, a coalition of local businesses and community groups—calling themselves We Are Rip City—has mobilized to urge officials to finalize the deal. These supporters argue that the arena’s outdated infrastructure has contributed to some major concerts and events skipping Portland, framing the renovation as a broader economic necessity.

Next Steps for the Moda Center Renovation

City administrator Raymond Lee noted that some councilors remain unsure about supporting a $120 million investment without a commitment from the team to share revenue or contribute to the project. As the city continues negotiations to refine the agreement, Lee offered a message for fans concerned about the team’s future: The city is making all efforts to make sure that the Blazers stay here and this is the permanent home of the Portland Trail Blazers, but we also want to make sure whatever we’re putting forth as a relationship and agreement with the Blazers that it’s something that we truly all believe in.

=== END ARTICLE ===