Trail Blazers, Portland City Council to finalize ‘bridge agreement’ to extend Moda Center lease (2024)

The Portland Trail Blazers and the Portland City Council have finalized a bridge agreement that includes a short-term lease agreement keeping the team playing at the Moda Center through at least the 2029-30 season.

The agreement creates additional time for both sides to structure a long-term partnership, leading to the renovation of the Moda Center, which will make signing a long-term lease more appealing for the franchise.

The Blazers, whose current lease terminates on Oct. 11, 2025, plan to remain in Rip City but seek to upgrade the 28-year-old Moda Center, making the facility comparable in amenities and luxuries to other arenas around the NBA.

With the lease expiration date rapidly approaching, Rip City Management and the city have structured two five-year lease extensions to allow more time to work on plans to enhance the arena and surrounding area.

The City Council authorized proposed agreement terms in February, setting into motion the structuring of a five-year bridge agreement. The actual agreement will be approved on Wednesday during a 2 p.m. City Council meeting.

The first five-year extension runs through the 2029-30 season. Should an agreement on a long-term lease not be reached within that time frame, an option exists to extend the lease through the 2034-35 season.

This process became necessary because the Blazers were not interested in signing a long-term lease extension to play at Moda Center as is.

“This bridge agreement is an exciting step towards a long-term partnership with Rip City Management and the Trail Blazers to maintain world-class sports and entertainment in Portland for years to come,” Portland mayor Ted Wheeler said in a prepared statement. “The Rose Quarter is central to Portland’s identity and civic pride—a major cultural center and gathering place that makes significant contributions to our regional economy. The opportunity to further enhance and grow this tremendous community asset in partnership with the Blazers is critical to our efforts to revitalize Portland’s central city.”

Although the Blazers have never indicated that they could leave Portland, the threat existed merely because most professional teams that depart cities usually do because of what they perceive to be inadequate facilities. The Blazers have made it clear that Moda Center, the oldest arena in the NBA, does not measure up to other NBA arenas. Therefore, renovations are necessary to convince the Blazers to sign a new lease.

“The Trail Blazers and Rip City are a key part of who we are as a community—a source of civic pride and identity across Portland and all of Oregon,” said Dewayne Hankins, president of business operations for the Blazers and Rip City Management. “Thank you to Mayor Wheeler, the City Council, City Administrator Michael Jordan, and everyone at the City who brought this agreement to fruition — this is an important step toward a long-term public-private partnership that would help revitalize the Rose Quarter and keep the Trail Blazers synonymous with Portland for years to come.”

Here are some highlights within the bridge agreement:

• The Blazers will continue paying at the Moda Center through the 2029-30 season with an option for an extension through 2034-35.
• The Blazers, who own the building but lease the land, will transfer ownership of the building to the city for $1.
• Rip City Management remains responsible for funding and completing repairs, maintenance, replacement, and physical improvement projects. The city must approve all projects.
• The agreement doesn’t require the city to make any upfront investment, take on debt, adopt new taxes, or increase existing taxes.
• The city’s financial obligation to capital projects would be funded by the city’s Spectator Venues and Visitor Activities Fund made up of user fees and revenue generated by public parking garages during Blazers home games.
• The city’s contribution to capital projects will be capped at 50% or whatever is available through the fund, whichever is lower.
• The City will acquire the Kosei property, a parcel of land in the Rose Quarter for $7.13 million from Rip City Management.
• Both parties will seek additional land near the Rose Quarter for development.
• The city has begun a legislative process to revise signage regulations at the Rose Quarter to improve security and drive additional revenues. The City Council expects a proposal in November.
• Should the Blazers and the city fail to reach a long-term deal and leave Portland, and no other NBA team takes occupancy of the Moda Center, Rip City Management must repay all money spent by the city on arena improvements. Also, the bridge agreement would remain intact should the Blazers be sold.

-- Aaron Fentress | afentress@Oregonian.com | @AaronJFentress (Twitter), @AaronJFentress (Instagram), @AaronFentress (Facebook)