Portland City Council members will be asked to commit $120 million in public money to renovate the Moda Center by mid-August without knowing where that money will come from in the city budget.

The funding source for Portland's share of the arena overhaul is unlikely to be identified before the vote, according to an OPB report published July 13.

The Northwest Examiner reported the council could vote on a term sheet as early as Tuesday, August 12, locking in the city's financial commitment to the $600 million project.

The disclosure puts councilors in an unusual position: approve a nine-figure spending pledge on faith, or risk derailing a deal that also depends on $365 million from the state and $88 million from Multnomah County.

The full financial picture

Trail Blazers owner Tom Dundon, whose group paid $4.25 billion for the franchise in March 2026 according to The Oregonian, has refused to contribute private dollars to the renovation. He told reporters in June that keeping the NBA team in Portland was investment enough.

The city owns the Moda Center, which Paul Allen built entirely with private funds when it opened in 1995. It is the oldest non-renovated arena in the NBA, and the Blazers' current lease runs through 2030.

Beyond the $120 million upfront, Mayor Keith Wilson, Council President Jamie Dunphy, and Vice President Olivia Clark signed a letter to the NBA earlier in 2026 pledging roughly $285 million in maintenance over 20 years.

That brings the city's total long-term commitment to approximately $400 million, according to The Oregonian.

The state's contribution, authorized through SB 1501 earlier in 2026, comes with strings. Bonds cannot be issued until both the city and county make binding financial commitments, according to the legislation. That makes the August term sheet vote a trigger for the entire $600 million package.

The funding fight

Wilson originally proposed tapping the Portland Clean Energy Fund, a 1% surcharge on large retailers that voters approved for climate projects. Multiple councilors have opposed using those dollars for an arena. Wilson acknowledged in June that the city may need an alternative source if the PCEF oversight committee rules the project ineligible.

"Our commitment is less than a quarter of the overall renovation cost, and we're still debating the smartest funding source," Wilson wrote in a June newsletter reported by the Portland Mercury.

Council skeptics face election pressure

At least four councilors facing November 2026 reelection races have publicly questioned the deal. Councilor Candace Avalos told The Oregonian in June: "I am going to have a hard time agreeing to give public money if I'm not seeing a private investment."

Councilors Mitch Green, Tiffany Koyama Lane, and Angelita Morillo have also voiced opposition. Morillo called the available options "shaky at best and fiscally irresponsible at worst" at a June 24 event covered by The Oregonian.

Multnomah County faces its own hurdles. The county board has not yet approved its $88 million share, and Commissioner Meghan Moyer noted the county is projecting a $78 million general fund deficit over the next four years.

What happens next

The council's August term sheet vote is a prerequisite for a final long-term lease agreement, which must be approved by December 2026, according to The Oregonian's editorial board.

If the city misses the August deadline, the state's $365 million pledge could stall, and the Blazers' lease expires in 2030 with no renewal agreement in place.