Multnomah County is set to invest up to $101.6 million in the planned renovation of the Moda Center. The county’s Board of Commissioners on Thursday adopted a resolution with conditions for the investment, including a deal with the city of Portland and the state of Oregon. The approximately $600 million project is intended to keep the Portland Trail Blazers playing in the arena for the long term.

The resolution’s terms will serve as guideposts for the county and the city as they negotiate a formal agreement with one another as part of final negotiations with the Trail Blazers, a Multnomah County press release states. The city delivered its own draft term sheet to the Trail Blazers last month.

“I’ve heard and agree with the desire that we enter negotiations with strong terms that ensure that this deal is a benefit for our entire community,” Chair Jessica Vega Pederson said during the six-hour board meeting on Thursday.

The county’s terms include the Blazers making a commitment to stay in Portland for at least 20 years, a funding clawback allowing the county to recoup its investment if benchmarks are not met, a project labor agreement for construction, community and neighborhood commitments such as equitable treatment of the Portland Fire in the renovated facility and development rights for parcels adjacent to the Moda Center going to Albina Vision Trust, a revenue stream for the governments contributing to the renovation, protections from cost overruns tied to the renovation or initial ongoing capital costs, and more.

The county’s proposed commitment is for renovation and some initial ongoing capital expenditures. As amended, it removes any county contribution of Business Income Tax (BIT) revenues received from the recent sale of the Trail Blazers. Instead, the county will explore other alternatives such as Motor Vehicle Rental Tax revenue or possibly even increasing the tax rate.

“I appreciate this (option rather than) using the BIT,” Commissioner Meghan Moyer said.

The funding source has been the biggest issue for the commission, Pederson said, adding that she’d like to see more specifics in that regard.

Moyer and Commissioner Julia Brim-Edwards expressed concern about the investment amount.

“I hope at the end of the day we end up at a low number,” Brim-Edwards said, adding that the resolution lists the investment as “up to” $101.6 million.

Moyer, who said the resolution was improved, ultimately voted no.

“I’m not going to be supportive of this package because it’s too much and I don’t want the county subsidizing a building we don’t own when we can’t afford to maintain the buildings we do own,” she said.

After the resolution passed, the county’s chief financial officer was directed to bring to the board funding proposals that prioritize using the Motor Vehicle Rental Tax, including the county’s 2.5 percent surcharge, and other tourism tax revenues.

The resolution also has three conditions. These include an updated economic analysis of market conditions, tax revenue projections and long-term costs and benefits; a complete workforce audit of direct and contracted employees for the Trail Blazers and Rip City Management; and a detailed renovation and maintenance plan covering scope, timeline, budget and risk management.

Negotiations between the county, the city and the state of Oregon for an intergovernmental agreement are expected to take place through October. The Multnomah County board is set to vote on the final agreement and related tax code amendments in December.

The Portland City Council will vote on its operator lease term sheet on Wednesday.

The county has hired a professional negotiator to act on its behalf and provide the board with regular updates and reports during the negotiation process.

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The Interstate 5 Rose Quarter Improvement Project is moving ahead to its next phase with $167 million in state funding, even as some critics question the Oregon Department of Transportation‘s piecemeal approach.

The Oregon Legislature adjourned March 6 with the project’s state funding intact despite shortfalls elsewhere in ODOT‘s budget. The total project is expected to cost approximately $2.1 billion. Currently, available funding totals $479.9 million, according to ODOT Deputy Director Travis Brouwer.

“It is both interesting and heartening to see the Legislature has left this Phase 1B funding intact,” Oregon Transportation Commissioner Phil Chang said Thursday, as the commission met to hear updates on several large-scale projects around the state.

“We’re in a very difficult position,” he added. “There are all kinds of services being delayed. There are all kinds of projects that are not being gotten to so that we can move forward with certain priorities. And it’s been great to be able to do that for the Rose Quarter project.”

Chang also pointed to uncertainty regarding the project’s completion.

“I hope we’re in a position after the 2027 legislative session to continue to do that, but I don’t think we can guarantee that to anyone,” he said.

Phase 1B of the project involves extending a southbound auxiliary lane between the Interstate 84 and Morrison Bridge/Oregon Museum of Science and Industry exits, widening the bridge at the Rose Quarter Transit Center and restoring related infrastructure, and building I-5 seismic upgrades and bridge deck resurfacing.

A $30 million federal Reconnecting Communities grant may be used to acquire rights of way in the corridor, project officials said.

“It is an encouraging signal that the tide is slowly but surely starting to shift at the federal level,” said JT Flowers, senior advisor at Albina Vision Trust.

A project working group has begun meeting monthly. The group includes city of Portland and Metro officials, and representatives from the Portland Trail Blazers, Albina Vision Trust and other groups. The working group has greatly improved collaboration on the project, participants said.

“On our end, we feel more confident than ever about the future of this project and our ability as shared stakeholders to deliver a full project, even if it takes us a bit of time,” Flowers said.

ODOT critics said the agency is fitting Rose Quarter construction phasing into the existing project budget with future funding uncertain.

“The money is still in the Rose Quarter budget, and you are determined to spend it,” said Christopher Smith, co-founder of activist group No More Freeways. “So, you are trying to invent a scope that makes sense for that money, with the plan that you’ll come back and ask the Legislature for more later.”

Smith charged that ODOT is building a “lane to nowhere” with no independent function. ODOT officials disputed that assertion during their presentation, saying independent utility of each phase is part of Federal Highway Administration criteria.

Joe Cortright, an economist and director of Portland-based think tank City Observatory, said ODOT needs a long-term funding plan.

“We’re proceeding on a piecemeal basis to fund individual steps without any clear idea of how we will pay for the whole project,” he said.

But some contractors said the project is providing benefits now.

Dominic Waters, owner of Crossover Construction, a Portland concrete contractor working with general contractor Raimore Construction, said that if the project doesn’t move forward, “less and less minority contractors will actually receive opportunities to do this work.”

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The Oregon Transportation Commission voted Thursday to move construction of the I-5 Rose Quarter Improvement Project to its next phase despite limited funding. The Oregon Department of Transportation will use $167.7 million to pay for work set to begin in 2027.

Last year, ODOT received a $450 million grant from the Federal Highway Administration via its Reconnecting Communities and Neighborhoods (RCN) program. This money was intended to pay for the Broadway Weidler Phase 1 package, including construction of the southern portion of the highway cover, completion of the southbound I-5 auxiliary lane and shoulder from I-405 to the Moda Center, and other improvements.

ODOT was able to obligate $67.5 million of the RCN funding before the remainder ($382.5 million) was rescinded by the 2025 Budget Reconciliation Act. The obligated funding can be used for preliminary engineering as well as work related to right of way and utilities.

There is $479.9 million in total funding available for the I-5 Rose Quarter Improvement Project, a staff report states. Travis Brouwer, ODOT deputy director of revenue, finance and compliance, said that funding is not sufficient to finish the project.

The available funding includes $380 million in House Bill 2017 Urban Mobility Strategy funding. Of that portion, currently $167.7 million can go toward phase 1 construction, Brouwer said.

The funding also includes $32.4 million in federal, state and local money for preliminary engineering and phase 1A construction.

“Phase 1A packages work in the corridor both in the north end near the I-5 interchange and at the south end at the I-84 interchange,” said Monica Blanchard, interim program director of the I-5 Rose Quarter Improvement Project.

Phase 1A is under way and scheduled to finish in late 2026. Its focus is on bridge maintenance, stormwater-related work, and early safety improvements. Subcontractors have been selected, the right of entry permit has been finalized, erosion control has been installed on site, and stormwater work on the drainage pond has started, Blanchard said.

ODOT completed a value engineering study and cost reduction workshop after May’s Oregon Transportation Commission meeting. A cost reduction concept of micropiles for the highway cover foundation has been adopted. According to ODOT, micropiles offer flexibility in construction and are better suited to address subsurface obstructions if encountered. Micropiles use smaller drilling equipment than other traditional foundation types and can be better mobilized in restrictive areas. The results are a $45 million cost reduction and no impact on the construction schedule.

ODOT will continue to consider other ways project costs can be lowered, Blanchard said. In fact, eight other concepts are being evaluated. However, officials have ruled out removing the second auxiliary lane on I-84 to Weidler Street, reducing the width of the highway within the highway cover, and using buried concrete arches in lieu of girders.

Moving forward, ODOT presented three construction options to the commission. Option 1 would be construction of phase 1B with the available $167.7 million. Crews would complete some of the operational and safety improvements on I-5 between I-84 and the Broadway/Weidler off-ramp, including widening over the Rose Quarter Transit Center and removing the pinch point at the I-84 northbound on-ramp. Construction would begin in 2027, after completion of phase 1A, and allow for a continuous transition from phase 1A to phase 1B.

Option 2 would delay construction of the full Broadway Weidler Phase 1 package until the third quarter of 2028 if additional funding is secured. ODOT would use remaining preliminary engineering funds, including the RCN grant, to complete design for all of phase 1.

Under option 3, construction funding for the Broadway Weidler Phase 1 package would be reallocated or reprioritized legislatively. Design of Broadway Weidler Phase 1 would be completed with federal RCN grant funding. The team would focus on completing the phase 1A construction package. The rest of the budget would be allocated to other ODOT priorities. ODOT staff did not recommend this option because the project cost would grow each year.

However, a fourth option was proposed by Metro, the city of Portland and Albina Vision Trust. In a letter, the partners proposed something similar to option 1 but with ODOT working with them on phasing and scope of phase 1B and phase 1C.

Commissioners voted unanimously to advance option 4, which directs ODOT to work collaboratively with local and regional partners to analyze the proposed construction scope and develop a feasible plan. ODOT will return before the commission in March or April with a progress report.

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An effort to widen Interstate 5 through Portland and build developable highway covers in Albina stands to lose $412 million in federal funding, a state analysis found.

The I-5 Rose Quarter Improvement Project will lose $150 million in 2027-29 and $262 million in 2029-31 after the passage of a Republican-led funding bill, according to an analysis by the Oregon Department of Administrative Services‘ Chief Financial Office.

President Donald Trump’s so-called “Big Beautiful Bill,” also known at House Bill 1, rescinds unobligated funds from the Neighborhood Access and Equity grant program, according to the state’s preliminary analysis, which was released on Monday.

The Trump administration’s move to pull previously approved funding puts the project’s immediate future in doubt, according to the state analysis.

“While an initial $60 million contract for paving and stormwater work that is part of phase 1 has advanced, constructing the remainder of phase 1 and phase 2 will be exceedingly difficult, if not impossible, without federal funding,” the Financial Office stated.

The funding rescission may cloud the project’s future, because it cannot be completed without hundreds of millions of dollars in additional funding, and state transportation funding is also stretched. A special session called for Aug. 29 is expected to produce money for operations and maintenance, but not major infrastructure projects such as the I-5 improvements.

The Rose Quarter project is expected to cost $2.1 billion, according to the Oregon Department of Transportation‘s most recent estimate.

“Any pause or delay will result in project cost escalation and removal of scope elements to bring down costs would significantly impact community support,” the analysis adds. “ODOT continues to evaluate the committed project financing, weighing options, as well as considering alternative investments since the total financing for the Rose Quarter Improvement Project is no longer secured.”

Joe Cortright, an economist and frequent ODOT critic, said the agency should pause the project until funding is secured.

“The idea that you would start work on this project, move forward with this project, when you’re at least $1 billion short makes no fiscal sense at all,” he said.

ODOT officials said they have no intention of delaying initial construction on the I-5 Rose Quarter Improvement Project. Construction will begin this summer and continue into late 2026, spokeswoman Rose Gerber stated in an email.

There are no plans for a ground-breaking ceremony, Gerber stated.

The first phase will include the extension of an auxiliary lane within the existing footprint of I-5 between the I-84 and the Morrison/OMSI exits, along with stormwater improvements and bridge maintenance. The work was previously approved by the Oregon Transportation Commission. Future phases are less clear.

“The agency is reviewing project financing and determining next steps,” Gerber stated. “ODOT is committed to working with its partners to secure additional funding to construct the project.”

Cortright said he’s concerned that ODOT intends to begin the project and then request a bailout from the Legislature. That is how he described ODOT paying for the Abernethy Bridge project at Oregon City.

“They started work on it, so they’re throwing more money at it,” Cortright said. “I think the ODOT plan is to repeat that process. Get started on it … and then go to the governor and the Legislature and ask for more.”

Whether ODOT’s plans to reconnect the Albina neighborhood with a freeway cover over I-5 will happen also remains to be seen. The cover has a been a key demand of Portland’s Black community, which is seeking to reconnect the North-Northeast Portland neighborhood that was partially demolished via 20th-century urban renewal practices.

A spokesperson for Albina Vision Trust, the group spearheading the effort, did not respond to messages requesting comment on Thursday.

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Albina Vision Trust will work with Edlen & Co. to develop in Lower Albina a seven-story building with 120 affordable housing units as well as an adjacent theater.

The residential building will serve families earning between 30 percent and 60 percent of area median income. The theater will serve artists and youths, and connect the North Portland neighborhood to its rich cultural heritage, Albina Vision Trust stated.

Albina Vision Trust, a community nonprofit, will own the building. Edlen & Co. – the recently rebranded successor to Gerding Edlen – will serve as developer.

Colas Construction, Lever Architecture and Kidder Mathews are project team members as well.

The property is located between North Flint and Wheeler avenues north of the Moda Center. It is owned by Betsy and Rich Reese, who have committed to the project’s mission and goals, Albina Vision Trust stated.

“The Albina Vision team is determined to lead the redevelopment of Lower Albina and the re-rooting of Black people, families and culture there,” stated Rukaiyah Adams, chairwoman of the trust’s board. “That work includes making sure that we are reflected in the built environment and that we participate in the wealth generated by our presence as owners of our homes and business. We aim to thrive, not just survive – and it begins with this project.”

Albina Vision Trust was founded to reverse the 20th-century displacement of Black families in the area for projects such as Interstate 5, the Rose Quarter and the expansion of Legacy Emanuel Medical Center.

“Recovery from the present-day consequences of forced displacement, the theft of Black wealth and the pandemic-induced economic downturn will require us to lead with our values,” stated Winta Yohannes, managing director of Albina Vision Trust. “This modest but significant action to prioritize the arts, create affordable housing and ensure community ownership is how we move from talking about equity to seeing it in action.”

Mark Edlen, co-founder of Edlen & Co., said the firm was approached by the property owners about two years ago; they sought a project with affordable housing and transit. The firm wants to be part of helping right past wrongs alongside Albina Vision Trust, Edlen said.

“We share that belief and that’s why we’re partnering with AVT,” he said.

The proposed project addresses two realities, Yohannes wrote in an email.

“There is no longer a single neighborhood in Portland considered affordable for the average African-American family and … creative organizations and artists also continue to be priced out of the city despite their importance to the fabric of our civic and economic identity,” she stated. “For these reasons, it was important that we anchor our first project and Lower Albina’s rebirth with housing and a theater, which recognizes both the rich cultural heritage of the district and our aspirations for its future as a thriving arts district.”

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The Oregon Department of Transportation has selected a construction manager/general contractor to lead a controversial Portland freeway expansion effort. The agency announced Monday an intent to award a contract to Hamilton Sundt a Joint Venture, in association with Raimore Construction, for the I-5 Rose Quarter Improvement Project.

The joint venture teams Springfield-based heavy civil specialists Hamilton Construction and Arizona-based Sundt Construction. Raimore Construction, a minority-owned firm certified by the state’s Certification Office for Business Inclusion and Diversity, is based in Portland.

Estimated to cost up to $795 million, the project will widen a 1.8-mile stretch of Interstate 5 between Interstate 405 to the north and the Morrison Bridge exit to the south. A request for proposals issued in April listed a guaranteed maximum price of between $575 million and $635 million for the CM/GC contract.

The project lost the support of key backers earlier this month when Albina Vision Trust announced it would no longer support the project due in part to a lack of freeway caps included in current plans. The interstate was built through historically Black neighborhoods in the 1960s, and Albina Vision Trust has advocated for the caps as a means to restore communities displaced by the freeway’s construction.

After Albina Vision Trust pulled its support for the project, public officials including Gov. Kate Brown, Portland Mayor Ted Wheeler and Commissioner Chloe Eudaly followed suit, saying they would not endorse the project without the backing of communities of color.

According to an ODOT press release, involving a CM/GC early in the design process will help meet the project’s emphasis on providing “restorative justice for communities harmed by previous government actions.”

The contractor will work with community members to help shape the project’s design, identify subcontracting and procurement opportunities for COBID-certified firms and build capacity for minority workers. According to the RFP, ODOT anticipates Disadvantaged Business Enterprise (DBE) participation goals of about 18 to 22 percent; the project also includes workforce goals of 25 percent minority male workers, 14 percent female workers, and 20 percent apprentice workers.

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