Authorize Intergovernmental Agreement between the City, State of Oregon, and Multnomah County to establish the Oregon Arena Joint Authority

The City of Portland ordains.Section 1. The Council finds:By the authority granted in Oregon Revised Statute (ORS) 190.110, state agencies may enter into agreements with units of local government for the performance of any or all functions and activities that a party to the agreement, its officers, or agents have the authority to perform.The City-owned Moda Center is the multipurpose sports and entertainment arena at 1 North Center Court Street in Portland, Oregon, and Oregon's primary and largest indoor sports arena and is a significant driver of regional economic activity.On March 31, 2026, SB 1501-B was signed by the Governor. The Act declares an emergency, making it effective upon passage and is codified at Laws 2026, chapter 74.In Senate Bill 1501-B, the Oregon legislature approved a funding package for renovations to the Moda Center funded by debt instruments secured by income tax revenues generated by wages paid for services performed at the Rose Quarter or related to activities or operations at the Rose Quarter.Section 2 of SB 1501-B authorizes DAS, in consultation with the Governor and Attorney General, to negotiate and enter into an agreement with one or more public bodies to establish a joint authority to own and oversee operations of the Moda Center.Section 3 of SB 1501-B establishes the Oregon Arena Fund in the State Treasury, separate and distinct from the General Fund. The Oregon Arena Fund consists of money appropriated, allocated, deposited or transferred to the fund by the Legislative Assembly or from any public or private source and interest earned on moneys in the fund.The moneys in the Oregon Arena Fund are to be continuously appropriated to the Oregon Department of Administrative Services for the purpose of paying expenses of the joint authority, including, without limitation, expenses related to construction, renovation, capital improvements, repair, on-going capital expenses, deferred maintenance, arena operations and debt service at the Moda Center.SB 1501-B also requires that the City of Portland and Multnomah County make binding and substantial commitments to finance construction, renovation, maintenance and deferred maintenance of the Moda Center and related debt service.On August 6, 2026, the Multnomah County Board of Commissioners adopted Resolution 050, affirming the County's commitment to the renovation of the Moda Center and providing direction to the County Chief Financial Officer and Chief Operating Officer on the terms to be included in future agreements regarding Moda Center renovations and the County's funding commitment.On August 12, 2026, the Portland City Council adopted Resolution 37750 authorizing a non-binding term sheet with Rip City Management, LLC and Trail Blazers Holdings, LLC outlining the terms for a renovation of Moda Center, a 20-year lease commitment from the team, and conditions for the City's funding commitment to the renovation and on-going capital expenses.The Parties have agreed that funds for renovations to the Moda Center will improve visitor experience, install more energy-efficient systems that will lower the building's carbon footprint, and update lighting and audio-visual systems.The Parties believe that funding Moda Center renovations are investments in the region's economic and cultural vitality and are needed to safeguard the state and city against loss of Oregon's only National Basketball Association (NBA) franchise, the Portland Trail Blazers (the "Blazers"), and to ensure the Moda Center is a state-of-the-art, world-class arena.The City-approved non-binding term sheet was sent to Rip City Management, LLC committing public funds from the State of Oregon, the County, and the City and further outlining the formal terms to be negotiated on behalf of the joint authority, State of Oregon, County and City in formal definitive documents and amendments to existing agreements that necessitate the renovation of the Moda Center and lease commitment to keep the Portland Trail Blazers in Portland for a minimum of 20 years.The Parties desire to enter into this Agreement to establish a joint authority for the purpose of negotiating formal definitive documents, operational oversight of the Moda Center, and to act as steward of the public investment into facility renovations.On October 1, 2026, the Multnomah County Board of Commissioners approved a resolution directing the County Board Chair to sign the Joint Authority Agreement for the Moda Center Improvement Project, attached as Exhibit A to this ordinance.The State, County, and the City will enter into separate agreements or an amendment to this agreement in the future as needed to reflect mutually agreed upon modifications to the terms contained herein. NOW, THEREFORE, the Council directs:The City Administrator is hereby authorized to enter into an Intergovernmental Agreement with the State of Oregon and Multnomah County establishing the Oregon Arena Joint Authority, in a form substantially similar to the form attached as Exhibit A.