A Portland Trail Blazers executive said Thursday that the threat of litigation is casting a pall over negotiations with the city of Portland on paying for Moda Center renovations.

The Trail Blazers have attacked a provision in their current lease that would allow the city of Portland to sue the team for the cost of renovating the Moda Center if the team were to leave the arena when the lease ends in 2030.

Dewayne Hankins, the Trail Blazers president of business operations, decried the “threat of litigation hanging over these negotiations.”

The provision “has been wielded as a weapon, chilling our negotiations,” Hankins said.

Trail Blazers officials and city councilors held a work session Thursday that functioned as a temperature check on negotiations over arena upgrades. The two sides appeared far apart on any agreement to renovate the nearly 31-year-old Moda Center, which the city took ownership of in 2025.

They couldn’t even agree on whether the Trail Blazers were negotiating.

“It sounds like you have walked away from the table a bit,” Councilor Loretta Smith said.

Zandria Conyers, the Trail Blazers’ general counsel, disputed that characterization.

“We’re still at the table,” she said. “We have not walked away from the table.”

Conyers said the draft term sheet the city has circulated is a “nonstarter.”

“It is just not even a document we can respond to,” she added.

The Trail Blazers’ executives ceded little ground, instead taking a maximalist position in council chambers. Hankins reiterated that the team’s ownership group, led by Tom Dundon, would not agree to spend any money to renovate Moda Center.

“Going forward, in order for this deal to make economic sense, the contribution needs to come from the public sector,” Hankins said.

Hankins said the Trail Blazers should get credit for spending nearly $1 billion in the past 30 years on previous Moda Center upgrades and maintenance — even though that spending came under previous ownership.

Councilor Angelita Morillo, who has been a vocal critic of the Blazers’ recent statements, said the team had “moved the goalposts” after the city published a draft term sheet. She also dismissed the Blazers’ fear of litigation.

“They are only sued if they choose to move the team according to the bridge lease,” Morillo said.

A Trail Blazers representative said they had had discussions with potential architects and contractors to renovate the Moda Center. The team has identified $600 million in needed upgrades.

“We have architects and general contractors that we are excited to get to work with,” Hankins said. “We, in fact, had interviews with the city and state by our sides to have those, to pick those and select those, but until we have the funds to pay those architects, we don’t have plans to show you.”

The Oregon Legislature in its previous session passed a bill to supply $365 million in bond funding for Moda Center upgrades. The city has surveyed voters on potentially spending $120 million on the project. Multnomah County is also weighing its contribution.

The City Council is moving forward with public hearings on Wednesday and Thursday, with a vote on the term sheet to follow on Aug. 12. The council plans to vote on a lease agreement in December before bonds can be issued — if the city and the Trail Blazers can play ball.

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Hillsboro’s data center market ended 2025 with a 0.2 percent vacancy rate, according to a recent report, underscoring insatiable demand in the sector and constrained supply.

At year end the market had 475.4 megawatts of inventory and approximately 1 megawatt of available capacity, CBRE found. Asking rents ranged from $175 to $225 per kilowatt per month.

“Hillsboro‘s exceptionally low vacancy underscores how critical the market has become for West Coast deployments,” Haakon Weinstein, a Portland-based CBRE vice president, stated in a news release.

“Even with limited new supply last year, demand remained steady, driven by the area’s network density and access to renewable power,” Weinstein added. “With development constrained in part by the region’s urban growth boundary and power transmission limitations, availability will remain scarce, influencing both rate and land price trends.”

Hillsboro remained the seventh-largest North American data center market, led by Northern Virginia, Atlanta, Dallas-Fort Worth, Chicago, Phoenix and Silicon Valley.

Locally and nationally, data center developers perhaps have run out of easy locations to build. Data center capacity under construction fell to 5,994.4 megawatts at the end of 2025, compared to 6,350.1 megawatts a year earlier.

CBRE’s report blamed “longer timelines tied to permitting, zoning approvals and securing adequate power” for the first drop in data center construction since 2020.

Weinstein said he expects to see more construction near major cities, where operators prize speed.

“As data centers progress, you’re going to see more data centers on the edge of population centers that have very low latency,” Weinstein added in an interview.

Despite demand, Hillsboro isn’t where growth is occurring nationally. Dallas, Austin, Atlanta, Raleigh, North Carolina and Denver-Boulder, Colorado, are all seeing strong growth, Weinstein said.

Oregon is prized for relatively cheap electricity, and a mix high in renewable energy. Undersea data cables come ashore at Pacific City, and the state is sandwiched by tech clusters in Seattle and Northern California.

More growth is expected in Eastern Oregon, where Amazon has bought up “huge swaths of land,” Weinstein said. Hillsboro could see more growth if an effort to expand its urban growth boundary is successful, he said.

Meanwhile, data centers face political opposition from some critics who blame the industry for sharp rises in utility bills and water usage. The Oregon Legislature this month approved a one-year moratorium on property tax incentives for new data centers.

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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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A health recovery facility is coming to Portland’s Central Eastside Industrial District. The Multnomah County Board of Commissioners on Thursday approved the Sobering and Crisis Stabilization Center project team to proceed with construction.

Multnomah County purchased the property, located at 1901 S.E. Grand Ave., in April 2025. The existing building will be renovated and gain a new entrance, around the corner, at 440 S.E. Stephens St.

The temporary Coordinated Care Pathway Center, at 980 S.E. Pine St., has been offering services since last year. It has 13 sobering stations, according to Multnomah County’s website. But that facility will close once the new one opens with 47 stations.

The total project cost is $29.8 million. The project team includes architect Scott Edwards Architecture and construction manager/general contractor Fortis Construction.

The facility will receive people transported by law enforcement personnel, first responders, and referral partners. Community Bridges Inc. of Mesa, Arizona, will operate the center. Services will include sobering, withdrawal management, medication-assisted treatment, deflection, and sheltering. There will be three main areas: intake, sobering, and withdrawal management. Care in the sobering area (18 stations) will be provided for up to 24 hours. Care in the withdrawal management area (29 stations) will be provided longer than 24 hours.

Trauma-informed design is being used for the 26,053-square-foot center, Multnomah County Health Department strategic initiatives manager Marc Harris said during Thursday’s meeting.

“This includes low-barrier walls (to allow) caregivers to monitor individuals,” said Greg Hockery, assistant director for planning, design and construction for the county.

The renovation will include interior demolition, beginning with the wood-framed mezzanine level. Crews will then complete a seismic upgrade to meet current building codes, install new flooring, perform an interior build-out, and install new building systems. Also, the building envelope will be upgraded with a new roof and enhanced insulation to meet Oregon energy code requirements.

Site upgrades will include adding an enclosed outdoor patio for program participants and accessible parking, regrading all drivable surfaces, and adding separate entrances for staff, law enforcement and the public.

Last year, the Oregon Legislature, via House bills 5204 and 5701, allocated $35 million to Multnomah County to support construction of a permanent sobering center able to receive behavioral health drop-offs. Some of the money went toward a building renovation for the temporary Coordinated Care Pathway Center and the rest went toward the acquisition and renovation of the permanent facility.

Approximately $14.2 million more is needed to fully fund the Sobering and Crisis Stabilization Center project. That amount will be requested from the county via its general fund over the course of fiscal years 2027 and 2028.

Construction crews are expected to be mobilized within the next few weeks. Work is scheduled to wrap up in September 2027.

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Architectural renderings of a proposed renovation of the Moda Center show sweeping concourses with views of the basketball court and improved lighting, but whether public officials can muster support for the $600 million price tag remains to be seen.

They’re certainly trying. State and local officials mounted a concerted campaign this week to press the case for funding upgrades for the arena, which the city of Portland acquired in 2024 and leased back to Rip City Management, the management company of the Portland Trail Blazers.

Without the renovation, local leaders fear the Trail Blazers will move to another city.

“Renovating the Moda Center isn’t about one building — it’s about Oregon’s future,” Portland Mayor Keith Wilson said in legislative testimony on Wednesday. “This project strengthens our economy, supports communities across the state and ensures Oregon remains competitive for major events and investment. With state partnership, it becomes a generational investment in jobs, culture and long-term economic relevance.”

Oregon lawmakers hope to raise a large chunk of the necessary amount with a tax on players and other employees around the Moda Center. A bill to create the fund and direct tax revenues to it was introduced in the state Senate on Monday. The legislation, Senate Bill 1501, would also allow the state’s Department of Administrative Services to take ownership in partnership with the city of Portland.

The city and Multnomah County are also discussing potential funding sources to remake the Moda Center. Multnomah County Chair Jessica Vega Pederson called the Moda Center “a crucial economic engine for our state” in testimony given Wednesday. Gov. Tina Kotek also voiced support.

Despite growing criticism in some circles of taxpayer subsidies for sports teams, business leaders are largely united behind efforts to retain the Trail Blazers.

“It’s hard to understate the importance of the Trail Blazers to our community, especially at a time like this,” said Greg Goodman, co-president of Downtown Development Group, a major Portland real estate investment firm.

Portland can’t afford to lose the Blazers when the city’s economic recovery remains fragile, he said.

“Portland’s getting better, but we’ve obviously had some setbacks,” he said. “And losing the Blazers would be devastating to the pride of the community.”

Fears the Blazers could move have risen as Paul Allen’s estate, controlled by Jody Allen, prepares to relinquish ownership of the team to an investment group led by Tom Dundon, a Dallas businessman with few apparent ties to Oregon.

Sports team owners have not been shy about moving operations in search of better stadium deals. Major League Baseball‘s Athletics are in the process of moving from Sacramento to Las Vegas after jilting its longtime hometown of Oakland, California. The NFL‘s Raiders moved from Oakland to Los Angeles to Oakland to Las Vegas. Seattle still bears psychological wounds from the SuperSonics leaving for Oklahoma City. And even the Chicago Bears, one of the NFL’s oldest franchises, is considering leaving the city — the state of Iowa is dangling incentives in a long-shot bid for the team.

The Moda Center was completed in 1995 and originally named the Rose Garden. The arena supplanted Veterans Memorial Coliseum as the city’s premier sports and concert venue.

In addition to the Blazers, the Portland Fire will soon call Moda Center home as its inaugural WNBA season begins in May. The arena also hosts major concerts, including the Wu-Tang Clan, Cardi B and Pearl Jam in recent years. However, some artists such as Taylor Swift and Coldplay have bypassed Portland in favor of making tour stops in Seattle.

Officials hope the renovation can be completed by the time Moda Center hosts the 2030 NCAA Women’s Final Four. The arena generates an estimated $670 million in annual economic impact and nearly 4,500 jobs, according to a joint statement from state and local leaders.

It wasn’t immediately clear which architecture firm is designing the renovation. GBD Architects has designed past Moda Center upgrades, including new suites, concession areas and retail and concourse spaces. But a spokeswoman for the firm said GBD is not involved this time.

The renovation push comes as the 1803 Fund and Albina Vision Trust work to remake the neighborhood around the Moda Center. In December, the fund announced it had purchased two groups of properties, including grain silos between the arena and the Willamette River, for $70 million.

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A research group backed by contractors is looking to expand its presence in Oregon policy circles with studies of interest to industry.

Contractors are supporting the Common Sense Institute (CSI) as an ally able to bolster their political efforts in Salem and locally with data-driven studies.

CSI’s Oregon chapter is billed as a “non-partisan research organization dedicated to the protection and promotion of Oregon’s economy.” The chapter receives funding from groups including the Associated General Contractors‘ Oregon-Columbia chapter, Oregon Realtors and Oregon Business & Industry, an AGC official said.

CSI was founded in Greenwood Village, Colorado. The Oregon chapter was established in March 2024, according to state records.

“We’ve seen it as something helpful,” said Kirsten Adams, an AGC lobbyist.

CSI produces research on business matters, including a recent study finding “renewed weakness” in Oregon’s labor market at the end of 2025. Another study, released Tuesday, quantified the economic impact of the state’s outdoor recreation industries, such as golf and skiing.

AGC’s Oregon-Columbia chapter supported bringing CSI here after contractors in Colorado spoke positively of CSI’s role in that state, Adams said.

“We talked with our counterparts from AGC Colorado, and they saw some benefit from having a nonpartisan research group,” she said.

Cinamon Watson, the group’s Colorado-based CEO, said CSI’s research does not support either major political party.

“We are not an advocacy organization, and we are not partisan,” she said. “We are strictly nonpartisan. We deliver the facts and the data that impact jobs and the economy.”

Mark McMullen, the longtime former state chief economist, serves as CSI’s vice president of policy and research. McMullen took the CSI job after serving as the state’s point person for calculating the income tax “kicker” refund.

CSI also has chapters in Arizona and Iowa, and has done work in other states.

“When people have good facts and data instead of political spin or rhetoric, they make better decisions,” Watson said.

Some parties are skeptical of research produced by industry-backed groups — reasoning that they have an incentive to produce research that paints industry in a good light or to bury research that does otherwise.

“One has to question the findings in these types of studies given that there is a conflict of interest by the researchers,” stated Richard Clucas, a Portland State University professor of political science, in an email.

Clucas emphasized that he wasn’t familiar with CSI’s research specifically.

CSI Oregon’s board includes Tom Gerding, former CEO and current board chairman of Gerding Cos., based in Corvallis. Gerding has long been involved with AGC. Other board members include Dan Vannoy of Emery & Sons Construction Group, Angela Wilhelms of Oregon Business & Industry, Lynn Snodgrass of Drake’s 7 Dees and Jenny Pakula of Oregon Realtors.

“The board members (in Oregon) are really thoughtful about public policy and do care deeply about the state,” Watson said.

The group’s nonpartisan status does not mean that its reports don’t touch on hot political issues. Last year, as the Oregon Legislature debated a transportation bill to raise $4.3 billion over 10 years, CSI produced two reports analyzing the package’s costs and benefits.

AGC has important issues at play in Salem, including funding for the state’s megaprojects such as the Interstate Bridge replacement and the I-5 Rose Quarter Improvement Project.

As the Legislature meets for a five-week short session that began Monday, CSI will keep churning out analysis.

“We’ve got some good reports coming out,” Watson said.

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Oregon lawmakers passed a key transportation funding bill this week, averting layoffs at the Oregon Department of Transportation and securing money for road maintenance before winter weather begins.

“Oregonians believe … that having safe, accessible roads is a core function of government,” Gov. Tina Kotek said at a press conference on Monday. “Our highways have to be open. People need to be able to get where they need to go.”

The legislation halts the threatened layoffs of hundreds of ODOT employees that were due to occur if the bill hadn’t passed. ODOT also canceled the closures of 12 maintenance stations around the state.

Overall, the package is expected to boost revenue by $791 million in 2025-27, and $889.9 million in 2027-29, according to a Legislative Revenue Office analysis.

“This funding is a significant investment, and we do not treat it lightly,” ODOT spokesman Kevin Glenn stated in an email on Wednesday. “ODOT will increase efficiency and, with this funding, continue to deliver for Oregonians.”

Republicans criticized the bill, which passed the Senate by an 18-11 margin, as a major tax increase on Oregon drivers. The legislation hikes the costs of several taxes and fees.

“Democrats chose the easy path: tax more, spend more and ignore the consequences,” Rep. Virgle Osborne, R-Roseburg, stated.

Passenger vehicle registration fees will nearly double from $43 annually to $85. Title fees will jump from $77 to $216.

Payroll taxes will double to 0.02 percent, effective Jan. 1. That’s expected to raise $196.6 million during the next biennium.

The bill also:

• directs the Secretary of State to conduct biennial audits of ODOT’s capital projects and use of state highway funds, and
• gives the governor, rather than the state Transportation Commission, the power to appoint and fire the ODOT director.

The legislation does not fund any of the state’s major capital projects such as the $2.1 billion Interstate 5 Rose Quarter Improvement Project, which faces a massive funding shortfall in part due to federal cuts.

“This package doesn’t solve all of the issues we see going forward, so we’re hopeful for more conversation leading to a comprehensive solution later,” said Kirsten Adams, lobbyist for the Associated General Contractors‘ Oregon-Columbia chapter.

Transportation funding was delayed when legislators could not agree on a package during this year’s regular session that ended June 27. Kotek called a special session to begin on Aug. 29, but legislative action was delayed due to the lack of a quorum.

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By CLAIRE RUSH
Associated Press

Oregon could become the second U.S. state to require electric vehicle owners to enroll in a pay-per-mile program as lawmakers began a special session Friday to fill a $300 million transportation budget hole that threatens basic services like snowplowing and road repairs.

However, the special session got off to a rocky start: The state Senate met as scheduled at 9 a.m., but the state House failed to reach the two-thirds quorum required to conduct business, leaving the session in limbo as of late Friday afternoon.

Legislators failed earlier this year to approve a transportation funding package. Hundreds of state workers’ jobs are at risk, and the proposal for a road usage charge for EV drivers was left on the table.

Hawaii in 2023 was the first state to create a mandatory road usage charge program to make up for projected decreases in fuel tax revenue due to the growing number of electric, hybrid and fuel-efficient cars. Many other states have studied the concept, and Oregon, Utah and Virginia have voluntary programs.

The concept has promise as a long-term funding solution, experts say. Others worry about privacy concerns and discouraging people from buying EVs, which can help reduce transportation emissions.

“This is a pretty major change,” said Liz Farmer, an analyst for The Pew Charitable Trusts’ state fiscal policy team, noting “the challenge in enacting something that’s dramatically different for most drivers.”

Oregon’s transportation woes

Oregon’s transportation department says the budget shortfall stems from inflation, projected declines in gas tax revenue and other spending limits. Over the summer, it sent layoff notices to nearly 500 workers and announced plans to close a dozen road maintenance stations.

Democratic Gov. Tina Kotek paused those moves and called the special session to find a solution. Republican lawmakers say the department mismanaging its money is a main issue.

Kotek’s proposal includes an EV road usage charge that is equivalent to 5 percent of the state’s gas tax. It also includes raising the gas tax by 6 cents to 46 cents per gallon, among other fee increases.

The usage charge would phase in starting in 2027 for certain EVs and expand to include hybrids in 2028. Should the gas tax increase be approved, EV drivers either would pay about 2.3 cents per mile, or choose an annual flat fee of $340. Drivers in the program wouldn’t have to pay supplemental registration fees.

Drivers would have several options for reporting mileage to private contractors, including a smartphone app or the vehicle’s telematics technology, said Scott Boardman, policy adviser for the transportation department who works on the state’s decade-old voluntary road usage charge program.

Republican lawmakers, who have opposed the tax and fee increases, unveiled a different proposal Friday that largely focuses on lifting funding restrictions to allow the transportation department to spend more money on maintenance operations, including by redirecting dollars earmarked for public transit and efforts to combat climate change toward such operations. It does not include a road usage charge.

As of May, there were over 84,000 EVs registered in Oregon, about 2 percent of the state’s total vehicles, he said.

Questions about privacy and fairness

In past surveys commissioned by Oregon’s transportation department, respondents cited privacy, GPS devices and data security as concerns about road usage charges.

Oregon’s voluntary program has sought to respond to such concerns by deleting mileage data 30 days after a payment is received, Boardman said. While plug-in GPS devices are an option in the program, transportation officials anticipate moving away from them because they’re more expensive and can be removed, he added.

Still, not everyone has embraced a road usage charge. Arizona voters will decide next year whether to ban state and local governments from implementing a tax or fee based on miles traveled after the measure was referred to the ballot by the Republican-majority Legislature.

Many people don’t realize that “both your vehicle and your cellphone capture immense amounts of data about your personal driving habits already,” said Brett Morgan, Oregon transportation policy director for the nonprofit Climate Solutions.

Morgan added that road usage charges exceeding what drivers of internal combustion engines would pay in gas taxes could dissuade people from buying electric and hybrid cars. Already, federal tax incentives for EVs are set to expire under the tax and spending cut bill recently passed by the GOP-controlled Congress.

“We are definitely supportive of a road usage charge that has EVs paying their fair share, but they should not be paying extra or a penalty,” Morgan said.

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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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The Oregon Legislature‘s upcoming special session focusing on transportation funding may deal a major setback for tolling in the state — except for the Interstate Bridge replacement project.

Gov. Tina Kotek on Wednesday called for repealing a 2017 law that provides the framework for tolling on interstates 5 and 205.

Key state lawmakers, including Sen. Mark Meek, D-Gladstone, have urged the repeal of the law as part of anticipated legislation to fund the Oregon Department of Transportation.

“There will be language in the bill to repeal ORS 383.150,” Kotek said in remarks to reporters, in reference to the 2017 tolling law.

Kotek acknowledged that the idea of tolling Oregon drivers had not shifted out of park.

“We are in a pause across the system on tolling, outside of the Interstate Bridge,” she said.

Kotek’s comments were part of a broader outline of plans for the special session set to begin Aug. 29. On Tuesday, the governor said she would invoke her authority to reconvene the Legislature for the session.

The effort comes after the Legislature failed to pass a transportation funding bill in the regular session that ended June 27.

Kotek said Wednesday that she wants to keep the special session tightly focused on funding ODOT’s regular operations. Funding for the state’s infrastructure mega-projects is not expected to come out of the special session, Kotek said

The governor urged action, saying it’s needed to avoid layoffs at ODOT. The agency has already notified 483 workers of impending layoffs without forthcoming funding. Additional layoffs would follow early in 2026.

“These dollars will cover the ODOT budget to provide basic services for Oregonians and prevent layoffs of workers that provide basic services to Oregonians,” Kotek said.

Kotek gave the broad framework of a transportation funding bill but did not say how much it would cost. Among the bill’s elements:

• The state’s gas tax would rise 6 cents, from 40 cents to 46 cents per gallon.

• A $30 electric vehicle fee would be implemented.

• Vehicle registration and title fees would also rise.

• The payroll tax to pay for transit would double from 0.1 percent to 0.2 percent. Kotek said the increase is necessary to keep rural transit systems alive.

• The governor would have greater ability to fire the ODOT director. A 2017 transportation bill gave the Oregon Transportation Commission more authority over ODOT’s executive.

Kotek said she wouldn’t dwell on the transportation bill’s failure during this year’s regular session. She added that Oregon should consider funding transportation more often, on an annual or biennial basis, rather than in bigger cycles.

While Clackamas County lawmakers and others are likely to welcome a major setback for tolling, an industry official questioned how Oregon will pay for its major infrastructure projects without those revenues.

“It’s concerning to move away from any tolling, especially when tolling was how those projects were going to pencil out,” said Kirsten Adams, a lobbyist for the Associated General Contractors‘ Oregon-Columbia chapter.

Meek said it’s “great news” that Kotek will push to repeal the 2017 law. He added that he’d be open to tolling in the future to pay for the state’s mega-projects.

“I think there is room for tolling for the metro area to help pay for our mega-projects. I just want there to be a more open conversation about it,” he said.

Meek said he envisioned a London-style tolling area, where drivers would be tolled coming into the Portland-metro area from Hood River in the east, U.S. Route 26 from the Oregon Coast in the west, Interstate 5 near Aurora in the south and the Glenn L. Jackson Memorial Bridge (Interstate 205) at the Washington state border in the north.

Adams praised Kotek’s bid to seek greater accountability from ODOT leaders, and added that Oregon needs a better way of paying for mega-projects.

“We’re looking for a long-term funding solution for those bigger projects, knowing that’s important for the infrastructure in our state, the mobility in our state, and knowing they’re really expensive,” she said.

Kotek told journalists she has the votes to pass a transportation package, and that she is not concerned that a potential walkout by Republicans would deprive the Legislature of a quorum. Meek agreed.

“She would not have called this if she did not have a quorum and the votes to pass,” he said.

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