Oregon lawmakers are weighing whether to direct hundreds of millions of public dollars toward a major renovation of Portland’s Moda Center, with supporters calling it essential to keeping the Trail Blazers in the state and critics warning of deep tradeoffs for other public services.

During the first public hearing on Senate Bill 1501, Oregon Governor Tina Kotek, Portland Mayor Keith Wilson, Metro President Lynn Peterson, and other leaders expressed strong support for a three-part funding plan spanning state, city, and county contributions. The plan could total around $600 million, allowing for what officials describe as a necessary overhaul of the 30-year-old arena.

Under the proposal, Oregon would issue 20-year general fund–backed bonds and take partial ownership of the facility. Revenue would come from income taxes tied to the Blazers organization, Rose Quarter employers, touring performers, and construction activity during the renovation. Lawmakers have not yet clarified how much money could be diverted from the state’s general fund — which currently faces budget pressures in education, health care, and public safety.

Mayor Wilson outlined a tentative plan for Portland to commit about $120 million upfront and another $14 million annually, totaling more than $400 million over the life of the investment. He indicated that part of the city’s contribution might come from the Portland Clean Energy Fund, a voter-approved fund earmarked for climate and justice initiatives. That idea has already drawn scrutiny from both environmental advocates and fiscal conservatives.

Multnomah County Chair Jessica Vega Pederson said the county could add $88 million, likely financed by taxes on hotels and rental cars. State Sen. Kate Lieber, a Portland Democrat and one of the legislature’s chief budget writers, insisted that no state funds would be released without a signed long-term lease agreement ensuring the Blazers remain in the city.

Trail Blazers business president Dewayne Hankins told lawmakers the franchise would sign a 20-year lease at the renovated arena but would not commit beyond that term. The team’s current lease runs through 2030, with a possible five-year extension. Hankins said that revitalizing, rather than rebuilding, would extend the arena’s lifespan by another two decades at half the cost of a new venue.

The renovation plan surfaces as the franchise prepares for an expected ownership transfer to Dallas businessman Tom Dundon. That uncertainty, coupled with comments last year from NBA Commissioner Adam Silver suggesting Portland needed a new arena, has intensified pressure on state and local officials to act quickly.

Public testimony on SB 1501 leaned heavily in favor of subsidies, emphasizing the Blazers’ role in sustaining economic and cultural vitality in Portland. But advocacy groups like Tax Fairness Oregon warned against prioritizing corporate projects over core public needs. “While approving this bill may be justified by sports fans, Oregonians will be participating in a practice that taking from the poor and giving to the rich is somehow considered OK,” said board member Steven Wright.

The bill itself would not directly allocate money but would authorize future spending once terms with the team and local governments are finalized. Lawmakers are expected to continue deliberations in the coming weeks as they face growing pressure to maintain both fiscal discipline and Oregon’s NBA legacy.

Full coverage from Oregon Public Broadcasting: OPB: “This is what it costs”: State, local leaders line up to fund Moda Center renovation.