City of Portland agrees to buy Moda Center, land for $7.13 million, plans ‘major renovation’

Published 6:57 am Thursday, August 8, 2024

The Portland City Council unanimously approved the city’s purchase of the Moda Center, and a parcel of land located within the Moda Center for $7.13 million at Wednesday’s City Council meeting.

The purchase is part of a five-year bridge agreement between the City of Portland and Rip City Management, LLC — the “sister company” of the Portland Trail Blazers. Rip City Management and the Portland Trail Blazers are both owned by the estate of Paul G. Allen.

Under the arena’s new operating lease, the city has agreed to match the funding that the Blazers organization puts toward the renovation of the Moda Center. Per the agreement, the city’s contribution can not exceed the revenue it collects from ticket and parking fees generated by Blazers home games during the previous fiscal year. The city states that it will not use any other funds to pay for Moda Center renovations.

Nearly 30 years old, the Moda Center is the oldest NBA arena to not have undergone a major renovation, the city says. The pledge of public funds incentivized the Blazers organization to sign a five-year agreement that will keep the Blazers in Portland through 2030. With the promise of “major renovations” coming to the Moda Center, the Blazers and the city are working on a long-term agreement that would keep the team in Portland for 20 or more years.

“Rip City Management, LLC intends to seek public funding from sources in addition to the [City of Portland] to provide the public financial support necessary for a long-term agreement and needed major renovation,” the emergency ordinance reads.

KOIN 6 News is a news partner of the Portland Tribune. Their full story can be found at koin.com.