Oregon Lawmakers Introduce Plan to Renovate the Moda Center and Keep the Blazers in Portland Without New Taxes
Oregon political leaders yesterday announced that they have crafted Senate Bill 1501 to renovate the Moda Center without creating a tax burden for Oregonians.
Keeping the Blazers in Portland is a Top Priority
Keeping the Blazers in Portland in future years is a top priority for the state’s economy, according to a joint statement from Governor Tina Kotek, Senate President Rob Wagner, House Majority Leader Ben Bowman, Multnomah County Chair Jessica Vega Pederson, Portland Mayor Keith Wilson, and Port City Council President Jamie Dunphy.
Moda Center Generates $670 Million for the Local Economy
According to state leaders, the Moda Center generates an estimated $670 million annually for the local economy. It provides nearly 4,500 jobs and offers the public more than 240 days of sports and entertainment.
The Upgrade is Much More Than Just Basketball
The upgrade is much more than just basketball as the planned renovations will transform Moda Center into a world-class events destination to ensure that Oregon attracts national concert tours and marquee athletic events, such as the NCAA Women’s Final Four, which will be hosted by Portland in 2030. It will also secure the Blazers’ long-term future in Oregon.
“After more than 50 years, the Blazers are at the center of our state’s identity. Let’s cement their future in Portland and invest in an economic asset that benefits Oregonians statewide,” reads the statement.
Senate Bill 1501 was introduced to the legislature by Senate President Rob Wagner and contains three components supporting the renovation and management of the Moda Center for the next 20 years.
- Ownership will be jointly shared by the state and the city of Portland (current owner), allowing the state to utilize obligation bonds over 20 years as a financing tool for the renovation.
- Establish an Oregon Arena Fund to receive funds from various sources for renovations, maintenance, and operational overheads. SB 1501 does not appropriate money to the fund.
- Directs various state agencies to work with the arena operator to quantify taxes derived from economic activities at the Moda Center. This money will then be reinvested back into the Oregon Arena Fund to finance debt and operational services.
Here is what SB 1501 actually authorizes, based on the bill summary.
| Bill piece | What it authorizes | Key constraint readers should notice |
|---|---|---|
| Shared ownership framework | Lets Oregon DAS enter agreements to own and operate Moda Center with the City of Portland | Agreements cannot pledge general state money beyond what is in the Oregon Arena Fund |
| Oregon Arena Fund | Creates a dedicated fund intended to pay Moda Center costs | Bill sets structure, it does not itself promise a specific appropriation amount |
| Dedicated tax revenue stream | Dedicates certain tax revenues tied to work in and around Moda Center into the fund | It is a redirection of specified revenues, not a new tax rate in the bill summary |
Economists Say Stadium and Arena Subsidies Do Not Produce Regional Economic Growth
Despite the claims made in the joint statement, economists have repeatedly pointed out that stadium and arena subsidies seldom produce net new regional economic growth.
Source: Chicago Booth Review summary of the IGM US Economic Experts Panel question on public financing for sports stadiums
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They generally oppose subsidizing professional sports stadiums, suggesting that these facilities have very little to no effect on overall economic activity and job creation.
As a result, Oregon leaders may be required to provide clear, data-driven evidence of economic benefits before securing public support for Moda Center renovations.