Portland City Council voted 8-4 on Wednesday, Sept. 9, to advance a new 3,000-seat performing arts venue at Portland State University over renovating the Keller Auditorium.
The resolution directs the deputy city administrator to negotiate a Project Commitment Agreement with PSU by Dec. 1. It does not commit city money.
Council President Jamie Dunphy pushed hard for the PSU option, calling the Keller "a seismic death trap, a 4,000-seat assembly space, a giant room full of kids seeing the Nutcracker in a serious earthquake," KOIN reported.
A March 2020 city-commissioned seismic study found the Keller was not built to withstand a major earthquake, according to the council resolution. A separate facility assessment received in April 2026 found the building needs $8.5 million to $17.5 million just to maintain current service levels over the next decade, on top of broader seismic and deferred-maintenance needs.
Big price tag, no funding source
The proposed venue would be city-owned but sit on PSU's campus at Southwest Lincoln Street. The total estimated cost is up to $449 million, Oregon ArtsWatch reported. The Oregon Legislature allocated $137.5 million in state bond funds in 2025. PSU has raised $157.6 million for its share of the larger campus project, which also includes a smaller theater, academic buildings, a hotel and parking.
PSU has told the city it needs $44 million from Portland by Dec. 1 to continue fundraising and hit a 2030 opening target. The university must also have $50 million in matching funds by Feb. 1, 2027, to unlock the state bonds.
District 1 Councilor Loretta Smith, who voted yes, stressed the resolution does not pledge city dollars. Councilors said they expect to take up the funding question in December, according to OPB.
Ryan leads opposition
District 2 Councilor Dan Ryan cast one of the four no votes. Ryan said the resolution rests on "the fantasy that we'll find a billion dollars for two new large-scale performance halls that are not needed," according to OPB. He called instead for improving the Keller rather than adding new government obligations downtown.
The resolution also directs city staff to study shrinking the Keller to a 1,200-to-1,800-seat theater with seismic upgrades. That smaller size would no longer host touring Broadway shows. A city-commissioned economic study found Portland has enough audience demand for only one Broadway-scale venue.
The Keller, built in 1917, draws about 400,000 visitors downtown each year. It is the region's only large-scale Broadway-capable theater. The building will stay open during any new construction.
Wednesday's vote was the first time the expanded 12-member council, seated in January 2025, weighed in on the Keller's future. The Project Commitment Agreement is due Dec. 1, when councilors plan to consider how much, if any, public money should go to the PSU project.
