Hundreds of millions of dollars are due to be invested in performing arts infrastructure at the southern end of downtown Portland, and project stakeholders are continuing to secure funding to advance development.

The Performing Arts and Culture Center (PACC) will feature a Broadway-capable theater with up to 3,000 seats. The approximately $385 million venue will be owned by the city; officials are seeking funding, according to Jason Franklin, Portland State University associate vice president for planning, construction and real estate.

PSU‘s portion of the project will include an approximately 1,200-seat theater and academic space, a 150-room hotel with conference space, and a parking structure. Late last month, the Oregon Legislature provided substantial state support by approving issuance of $137.5 million in bonds ($85 million for the theater building and $52.5 million for the parking).

“The state’s investment in Portland State University represents a profound commitment to the importance of the arts in bringing together community and activating Portland’s downtown core,” Mayor Keith Wilson stated.

The hotel building will be developed and controlled by a hotel investor. Approximately $71 million for that project piece will be supplied by investor equity/conventional debt.

PSU also has received commitments totaling $7.6 million from Prosper Portland and $10.5 million in philanthropic pledges. University officials will aim to raise $20 million more via philanthropy.

“We’re in the funding portion of the project,” Franklin said.

The PACC will sit on a 4.25-acre PSU parcel: the current University Place Hotel property, at 310 S.W. Lincoln St. The site’s existing building and another building at 330 S.W. Lincoln St. will be demolished to accommodate the new development.

Bora Architecture & Interiors has completed conceptual design. A request for proposals (RFP) process will be launched, possibly in 2026, to secure an architect and a general contractor. Currently, design is expected to begin in 2027. Then construction would start in 2028 and finish in late 2030.

The total project cost estimate is from $615 million to $650 million. The state funding is a testament to the commitment of Gov. Tina Kotek and the Oregon Legislature to invest in performing arts, PSU, and downtown Portland, Franklin said.

“There’s a lot of opportunity for us to think about the next 100 years of performing arts here,” he said. “This is a great opportunity for the city and the region.”

PSU will use state-backed debt (to be repaid via parking revenues) to construct the parking. Officials have looked at scenarios with 500 to 700 spaces on-site and would prefer to build above ground to the extent possible since it would be less expensive and easier given the performing arts use, Gard Communications‘ Chelsea Punian, spokeswoman for PSU, stated in an email.

Community members have indicated to PSU officials that they hope the 3,000-seat theater will have a welcome, Northwest feel, Franklin said. Officials are looking at how mass timber can be incorporated, particularly in the atrium portion, he added.

Plans call for incorporating artist wellness rooms and storage space in the 1,200-seat theater. Ancillary retail space may be included as well, Punian stated.

“One thing that’s really difficult at the Keller (Auditorium) right now is just not having a lot of front (of) house space to sell merchandise,” Franklin said.

Also, multiple bars and restaurants are planned on-site.

The PACC is the first phase of Portland’s strategy, authorized by the City Council in October 2024, to develop two Broadway-capable theaters in sequence. The second phase will be a renovation of the Keller Auditorium.

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