PORTLAND, Ore. (KATU) — In what’s perhaps a surprising development, city leaders have sent an initial draft term sheet to the Trail Blazers this week outlining the city’s first proposal in negotiating a long-term agreement to keep the team in Portland.
It comes weeks ahead of a scheduled council vote on August 12 to approve a tentative term sheet and just one day after Mayor Keith Wilson accused the team of withholding essential details on the project.
“When you get into these type of negotiations, they’re tough. Yes, the city has asked and requested certain information from the Blazers and we have not received that. We’ve had communication with the Blazers and had verbal conversations with the Blazers. That’s what has taken place thus far,” city administrator Raymond Lee said after an executive session on the draft term sheet.
“I believe the Blazers are waiting on a term sheet before they really start opening up into negotiations with us and start getting some of that critical information that we would want to see on our end as it relates to building out a deal with the Blazers that will be long-term for the city and the Blazers,” he added.
The initial term sheet outlines the city’s financial commitment, its requests for the team, and other details that will need to be worked out in a long-term lease.
The main points of the city’s draft term sheet include the following:
- A binding 20-year non-relocation commitment from the team.
- Requirements for labor-peace agreements to support a stable workforce.
- Financial protections that outline clear caps on public funding, limits on eligible expenses, and safeguards for the City, State and County against cost overruns.
- A $3 million annual payment for property tax offset payment from Rip City Management, escalating over time, with proceeds shared among the City, County, and Portland Public Schools.
- Requirements for community event access, local hiring, sustainability standards, and partnerships with Albina-based organizations.
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KATU News reached out to the Trail Blazers organization, and a spokesperson said:
“I can confirm we received a draft term sheet this afternoon, and we’re reviewing the document now.”
A number of councilors are still unsure whether they’d ultimately support a $120 million investment without any commitment from the team to share revenue or contribute to the project. Others say it’s a unique opportunity to leverage state and county investment in the project.
“We want to get something in front of them, because we have to have something [to know] if they will agree to those terms or not – something that we can come back to our council and say, ‘Hey, these are the terms they agreed upon, and these are the terms that they’re saying they want to negotiate on.’ So, we have to be able to get that document to them in some shape or form to start, initially, those negotiations with the Blazers,” Lee said.
![{p}“We want to get something in front of them, because we have to have something [to know] if they will agree to those terms or not,” city administrator Raymond Lee said after an executive session on the term sheet. (KATU){/p}](http://katu.com/resources/media2/16x9/1280/800/center/80/44d152c2-05ba-4f6b-b3f6-3990c984bf9b-Sequence_excutivesessionmoda071626sbr_0001_frame_30254.jpeg)
“We want to get something in front of them, because we have to have something [to know] if they will agree to those terms or not,” city administrator Raymond Lee said after an executive session on the term sheet. (KATU)
It follows Wilson’s comments Tuesday that the team is withholding information and ignoring requests to discuss the nearly $600 million publicly-funded arena renovations.
“We are operating on an aggressive timeline to reach a new lease, and we have been explicit with the Blazers that design information and clarity around public investment are necessary to move forward,” Wilson said Tuesday. “The absence of essential details from Blazers is slowing progress at a moment when urgency is required. We know the NBA is committed to Portland, and we look forward to working with them to ensure negotiations on a renovated Moda Center and a new long-term lease happen in good faith.”
The team pushed back on that characterization in response.
“The City has more information than state leaders had during the legislative session. The Trail Blazers are ready to begin formal negotiations immediately using the framework set for us by SB1501 and the $365 million already made available for this project,” team spokesperson Charles Boyle said. “However, the parties must reach an agreement this year. We share the City’s sense of urgency. The next step is for the City to bring a term sheet to the table.”
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KATU reached out to the Blazers for a response on Wednesday’s developments about the initial term sheet.
Lee had this message for fans who worry the negotiations have broken down or the team will leave.
“The city is making all efforts to make sure that the Blazers stay here and this is the permanent home of the Portland Trail Blazers, but we also want to make sure whatever we’re putting forth as a relationship and agreement with the Blazers that it’s something that we truly all believe in and something that we can move forward in and that we’re getting that return on that investment – not only from a city perspective and the finances that are going into the deal but also from a community aspect,” Lee said.
The council is scheduled to have at least one more public meeting in July to discuss the deal ahead of a possible August 12 vote on a more formal term sheet.
