Blazers Arena Funding Fight Just Took A Turn Fans Needed

As Multnomah County commissioners propose leveraging rental car tax to fund the Moda Center renovation, they aim to safeguard core services amidst budget challenges and union concerns.

Two Multnomah County commissioners are pushing a new way to pay for the Moda Center renovation that they say could protect county services and ease one of the biggest points of friction in the deal.

Julia Brim-Edwards and Meghan Moyer want the county to use an existing rental car tax to cover its full $88 million capital contribution to the arena project. Under that proposal, the county would no longer rely on business income tax revenue tied to the Trail Blazers’ sale - money that would instead stay in the county’s regular budget.

That shift matters because the business tax revenue is viewed inside county government as a source that can help pay for core services. Bryan Hockaday, chief of staff for Brim-Edwards, said keeping that money in the general budget is “crucial to continuing core county services,” especially with more budget pressure ahead.

The county board is scheduled to take up the amendment, along with a number of other possible changes to the county’s overall contribution, at its Aug. 6 meeting.

Right now, the county’s arena funding plan uses $53 million from the rental car tax and $35 million from business income taxes. On top of that, commissioners are also weighing whether to put another $13.6 million toward arena maintenance, which would bring the county’s total to $101.6 million.

The push to rework the county’s share comes after a rough budget year that included plans to lay off about 166 full-time positions. That backdrop has fueled criticism from county workers, especially members of AFSCME Local 88, who argued at the July 23 board meeting that the county should focus on its own services and employees instead of helping fund the arena.

Union president Jackie Tate said Brim-Edwards and Moyer’s effort to “ reset ” the county’s role in the renovation is moving in the right direction. For the union, the key issue is that none of the arena money should come from sources that could otherwise support the county’s general fund.

“I do feel hopeful,” she said. “The county commissioners are trying to slow down the process to get to a fair deal for the county.”

Brim-Edwards and Moyer have already introduced nearly a dozen other amendments to the county’s proposal, including one that would add a clawback provision so the county could get money back if the Blazers leave Portland.

At the July 23 meeting, the two commissioners argued that the county needs a deal that actually benefits it, especially since the county does not directly receive income or property tax revenue from the city-owned arena.

The arena talks also carry extra weight politically. Brim-Edwards and Commissioner Shannon Singleton, who has also called for the discussions to be slowed, are both running with former Commissioner Sharon Meieran to replace Chair Jessica Vega Pederson.

Outside the county, the funding picture is already taking shape. Portland Mayor Keith Wilson has said the city will contribute $120 million, and the state has approved $365 million for the project. Trail Blazers owner Tom Dundon has said the team will not help pay for the costs.

City Council’s final term sheet is set for approval Aug. 12.

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