(PORTLAND, OR.) — The Portland City Council meetings held on August 5, 2026 and August 6, 2026, were largely dominated by a contentious discussion over a non-binding term sheet for the Moda Center arena renovation and a 20-year lease agreement to keep the Portland Trail Blazers in the city.
Photo Credit: portland.gov
The meeting revealed a council grappling with significant public pressure and a perceived lack of leverage against a billionaire owner, Tom Dundan, who has been accused of negotiating in bad faith by not engaging directly.
Council President Jamie Dunphy acknowledged the 'unusual circumstances' of the term sheet being city-drafted due to the Blazers' non-engagement. He underscored the role of the city council in these negotiations.
“To be clear, Portland City Councilors are not the city’s negotiators. By charter, the mayor and our negotiating team are under his authority, and they are the negotiating body of our government. City council’s task is to give advice, advise, and consent on terms negotiated by our city team, the joint authority with the state and the Portland Trail Blazers,” Dunphy said.
Video Credit: YouTube / eGov PDX
Several councilors proposed amendments aiming to increase public benefits, financial transparency, and accountability, highlighting internal divisions on the deal's fairness and the city's financial exposure, particularly given existing budget deficits and cuts to public services.
Testimony began with invited guests addressing the council.
Mike Thelin, the co-chair and leader of the "We Are Rip City" coalition, a local business and community group advocating for a public funding agreement to renovate the Moda Center and keep the Portland Trail Blazers in town, urged the council to 'think bigger' about the Moda Center deal, emphasizing that it's crucial to retain existing cultural assets.
“It’s about the future of our city. It’s about a signal and a direction that shows we’re able to do things that contribute to a much, much larger vision. I don’t think history is going to be kind to us if we end up on the wrong side of this one,” Thelin said.
Terry Johnson, CEO of the Boys and Girls Clubs of Portland Metro and a former club kid, strongly supported the city's investment in the Moda Center renovation. Johnson emphasized that a vibrant Moda Center is a crucial economic engine, supporting local businesses and strengthening the broader economy. Johnson explained that these businesses, in turn, become donors and partners for non-profits like his.
Johnson urged the council to view the term sheet as an investment in Portland's long-term vitality, arguing it helps ensure more young people have opportunities and families receive support.
Public testimony was varied and impassioned, as Portlanders sat in groups to express their opinions.
Jose Avalos, a business representative and member of OPCMIA Local 555 (concrete finishers) supported moving the agreement forward without delay. He emphasized that projects like the Moda Center create pathways to family-supporting careers through state-registered apprenticeship programs and keep current apprentices and journey-level workers employed.
Photo Credit: YouTube
“This is the opportunity to turn public investment into good jobs, stronger apprenticeship pathways and long-term benefits for working families. I respectfully urge the council to move this agreement forward without delay and help ensure this project delivers for Portland, for Oregon, and for workers who build our communities,” Avalos said.
District 3 resident Richard McNeal expressed strong upset over the process of creating the term sheet, citing 'very little public input,' hastily arranged meetings, and a lack of independent evaluation or a detailed list of needed repairs from the Blazers.
“I strongly suggest that we take more time to figure out a term sheet that works for Portland. Every dollar that we spend needs to come back into the coffers of Portland City. We do not [have] the funds available. We’re already cutting parks and critical city services. We do not have the money to invest,” McNeal said.
The council reconvened on Thursday to discuss the matter further.
“All amendments proposed for the Moda Center renovation term sheet were rejected, primarily failing with 5-7 or 6-6 votes (with the Council President casting tie-breaking 'no' votes),” OpGov.news reports.
Councilors critical of the term sheet expressed frustration over the lack of engagement with their amendments, believing this hindered a fair negotiation for Portlanders.
The administration maintained that the proposed term sheet was a reasonable starting point for negotiations and that amendments introduced at this stage could weaken the city's position.
A vote on the term sheet is expected to take place on Wednesday, August. 12.
If you would like to comment on this report, please email me at rory.h@lead4earth.org.
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