This Wednesday, August 12, the Portland City Council will vote on the proposed Moda Center term sheet.

In recent months, the Council has held work sessions, listened to public testimony, discussed the proposal’s financial commitments, and reviewed amendments to strengthen the City’s negotiating position.

Before the vote on Wednesday, I want to help Portlanders understand what the term sheet is and what it could mean for accountability, financial transparency, oversight, and good governance. 

This is not the final lease, and more negotiations will follow. If the Council approves it on Wednesday, August 12, it will set the framework for City negotiations and guide the agreement with Rip City Management, the Trail Blazers, the State, and other public partners.

That is why this vote matters.

The term sheet shows what the City is willing to offer, and it is the most important part of the process. 

The City’s proposed commitment is much larger than the $120 million people often hear about.

If the term sheet moves forward, Portland would be committing nearly $400 million in City funds overall. 

The City Council is the authority over the budget -- being transparent about finances is the best way to ensure good governance.

However, we still don’t have a clear answer about where the $120 million will come from or how it will be repaid. Also, the term sheet commits decades of future City-supported revenue to arena capital expenses, but there is no clear public explanation for why that amount is needed, what it will pay for, or how those funds could be used for other city priorities. 

The City’s own impact statement says that $120 million would come from “sources yet to be confirmed."

This matters because the funding source will determine the trade-offs. Portlanders should know the repayment costs and what such lavish borrowing does to the City’s ability to finance other priorities.

If existing City dollars are redirected, the Council should know which programs, services, or investments might be affected.

If restricted funds are considered, the Council should know whether those dollars are eligible and what their current or planned uses are.

Making a funding commitment without a clear funding plan is not good governance or responsible budgeting.

Among other things, the proposed term sheet includes: 

• A minimum 20-year arena lease 
• A continued 6% user fee on ticketed events
• A $3 million annual property-tax-offset payment. Increasing 5% annually
• Community benefits agreements including a Labor Peace Agreement

Unfortunately, my amendment did not pass.

The term sheet moved forward with nearly $400 million in planned City commitments, no identified funding source for the first $120 million, and no clear public explanation for committing another $275 million over the life of the agreement. 

This is more than just whether the City technically has enough money. It's about good governance and long-term sustainability.

It’s the Council’s responsibility to ask: 

• Where does the money come from?
• What are Portlanders giving up to spend it here?
• Why are we committing $275 million decades in advance?
• And what measurable public return are Portlanders receiving? 

These are the questions my amendment would have required the City to answer. 

Five Councilors proposed more than 18 amendments to address the City’s financial details, request basic analysis on public return, and improve accountability.

All amendments were introduced one after another, but despite a lot of work by all offices to get the needed details, they were all rejected. The questions remain unanswered. 

The term sheet is moving forward as it is, and all the amendments were rejected on August 6. Now, the term sheet is up for a vote tomorrow with no questions answered, no transparency added, and no extra protections for public funds.

For my amendment, Morillo 1, this means the term sheet does not currently require the comprehensive fiscal report I proposed before the Council considers a binding agreement or Portland’s debt. 

Tomorrow, the Portland City Council will vote on your financial future. Call and email your City Councilors today. 

• Councilor.Avalos@portlandoregon.gov
• Councilor.Smith@portlandoregon.gov
• Councilor.Dunphy@portlandoregon.gov
• Councilor.Pirtle-Guiney@portlandoregon.gov
• Councilor.Ryan@portlandoregon.gov
• Councilor.Kanal@portlandoregon.gov
• Councilor.Koyama-lane@portlandoregon.gov
• Councilor.Novick@portlandoregon.gov
• Councilor.Clark@portlandoregon.gov
• Councilor.Zimmerman@portlandoregon.gov
• Councilor.Green@portlandoregon.gov 

Ask your City Councilor for the following:

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