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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