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A financial framework to pay for planned renovations to Portland’s Moda Center, the historical home of the Portland Trail Blazers, was approved by the Oregon Senate yesterday.
Trail Blazers May Stay In Portland After Senate Approves Moda Center Finance Framework
The Moda Center hosts more than 240 days of sports, concerts, and other events, drawing about 1.6 million visitors each year.
Tidings Data Snapshot
Moda Center footprint in OregonSource: City of Portland statement on SB 1501, Portland Metro Chamber SB 1501 testimony, Senate President Wagner SB 1501 releaseDailyTidings.com
The center generates an estimated $670 million in economic impact and supports nearly 4,500 jobs, but requires costly renovations.
To help fund the renovations, the new bill establishes a framework for the state to participate in a renovation project at the arena and the surrounding Rose Quarter district, allowing the state to form a partnership with local governments that could partially own and oversee the facility.
Under the bill’s plan, the state could issue up to $365 million in bonds to fund upgrades to the arena and the nearby plaza.
Tidings Data Snapshot
SB 1501 financing numbersSource: OPB reporting on the SB 1501 vote and analyst estimatesDailyTidings.com
The Oregon Arena Fund, a dedicated account used to receive revenue and pay for renovation costs, maintenance, and debt service tied to the project, is also part of the bill, but the measure works alongside a separate bonding bill that would provide financing for renovations.
Functioning much like a loan, bonds would allow the state to borrow money from investors up front to pay for construction and then repay that money over time.
There has been no confirmation on whether the Portland Trail Blazers are staying in Portland or moving to a new headquarters, but the renovations may help keep them in Oregon while modernizing the aging arena, a project estimated to cost up to $365 million.
State officials would still need to finalize agreements with local governments and negotiate a long-term lease with the Trail Blazers before any bonds could be issued, and lawmakers would still need to approve a separate bonding bill to allow the state to borrow the funds.
The bill now moves to the Oregon House.
Critics Question Whether High Cost Of Moda Center Renovations Rewards The State With ROI
Academic research on stadium financing shows most publicly funded arena renovations have little measurable impact on regional economic growth, giving critics new ammunition as Oregon considers committing hundreds of millions to renovations on the aging Moda Center.
Here are a few of the most cited research takeaways critics point to:
| Source | What it reviewed | Bottom line |
|---|---|---|
| Journal of Economic Surveys survey (Bradbury, Coates, Humphreys) | 130 plus studies across 30 plus years | Near universal finding of limited local economic gains vs public outlays |
| AEA summary of the survey | 1970 to 2020 venue builds in US and Canada | $33B public funds cited, median public share 73 percent, consensus on small impacts |
| Brookings on tax exempt stadium bonds | Federal subsidy via tax exempt municipal bonds since 2000 | $3.2B subsidy estimate, $3.7B revenue loss estimate |
| Sports, Jobs, and Taxes (Noll, Zimbalist editors) | Case studies across multiple US cities | Argues teams and facilities are not a source of local economic growth and jobs |
Economists found that despite claims by job planners and proponents of the state’s economy, there is no evidence of a positive economic impact of professional sports teams and facilities on urban economies.
A separate paper also concluded that, despite robust evidence that stadiums are not economic development catalysts, but rather confer limited social benefits. Yet public outlays persist.
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