Portland's effort to keep the Trail Blazers at Moda Center faces a rocky stretch, with city councilors publicly divided over a first-draft term sheet and the team calling the proposal a "non-starter."

The friction comes after NBA Commissioner Adam Silver said at a Las Vegas press conference on July 14, that the deal "seems to have gone off track." Council President Jamie Dunphy said the Blazers had "completely gone cold" on the city, refusing to answer basic questions about what the $600 million renovation would actually pay for.

Two days later, the city's negotiating team delivered the draft to the Blazers on July 16, following a four-hour executive session with the City Council. The document proposes a binding 20-year non-relocation agreement, a $3 million annual payment from Rip City Management that escalates 5% per year, labor harmony agreements, caps on public funding, and community benefits including local hiring and partnerships with Albina-based organizations in Portland's historically Black neighborhood.

The Blazers' response landed hard. A top team official, speaking anonymously, rejected the city's terms across the board and warned: "And if they don't want us, then that's fine."

On the council side, the split is sharp.

Councilor Eric Zimmerman said on July 20, that he trusts Mayor Keith Wilson's process. However, Councilor Steve Novick, an attorney by training, offered a blunter assessment in the same report. Novick warned the Blazers could treat the city's opening position as a ceiling to negotiate down from, not a floor. In his experience, he said, the first document resembling an offer is typically a high-end ask, not a low-end one.

Deputy City Administrator Donnie Oliveira tried to cool the temperature. In an email to councilors sent July 16, Oliveira wrote that the draft was explicitly described to the Blazers as unapproved by council. In a public statement July 20, Oliveira confirmed the negotiating team intends to bring a final term sheet to council for a vote on August 12.

Mayor Wilson has pledged up to $120 million in city funds. The state committed $365 million, but that package expires in December 2026 if no lease is finalized. Multnomah County has proposed roughly $100 million more, though County Commissioners Julia Brim-Edwards and Meghan Moyer called for a "reset" on that commitment on July 16, arguing the county has no ownership stake in the arena and receives neither income nor property tax revenue from it.

Not all the pressure is adversarial. The Metropolitan Mayors' Consortium, representing 24 cities and 1.7 million Oregonians, released a letter July 15, urging Portland leaders to finalize a deal. A "We Are Rip City" coalition of business and community groups launched the same week to rally public support.

The Moda Center, sold to the city by the estate of former owner Paul Allen in 2024 for $1, is the oldest non-renovated arena in the NBA, according to Oregonian reporting. The planned renovation targets three summers of construction from 2027 through 2029, aiming to finish before Portland hosts the 2030 NCAA Women's Final Four.

The council's next executive session on the term sheet is scheduled for July 22. The August 12 vote remains the critical date.