What else
could Portland do?
A credible alternative creates negotiating leverage only if its costs and constraints are priced.
The short version. A credible smaller-project or continued-operation alternative creates leverage. It needs a funded operating plan, not assumed repair recoveries or a forced franchise sale.
What makes an alternative credible
- 01Legal routeWhich rights the City can actually exercise.
- 02Operating planWho books, runs and maintains the venue.
- 03FinancingCapital, transition and fixed costs paid.
- 04Public outcomeBenefits, disruption and risk compared.
Ownership is valuable but takeover has conditions
The City owns the arena, but certain team subleases and lender rights survive operator failure. Arena Operating Lease §12.2.6 protects a team tenancy at 110% of variable direct game costs in the specified takeover scenario. That payment does not cover all fixed operations or capital replacement. City closure and tenancy-termination elections can also affect the Exclusive Site Agreement.
Existing protections should be preserved: §6.1.1 protects public fee title from subordination; §6.1.3 provides lender cure/replacement machinery; §13.4.5 limits City liability. The direct franchise covenant can survive operator termination, subject to specified exceptions. A credible alternative needs a cash-flow model using both retained income and surviving duties.
The Exclusive Site Agreement §4.5 TBI backstop is a narrow secondary corporate obligation for the specified City contribution after six months of nonpayment. It is useful, but is not a general owner/parent guarantee. NBA-approved ownership changes, lease assumptions and the buyer’s actual credit support must be checked separately.
Sources: Arena Operating Lease approval exhibit · Exclusive Site Agreement approval exhibit
Compare feasible paths
| Path | Evidence required |
|---|---|
| Continue the bridge | Remaining term, optional extensions controlled by the tenant, maintenance timing and actual receipts. |
| Smaller or phased renovation | Essential scope, safe phasing, tenant calendars and committed funds. |
| Different management | Procurement authority, protected subleases, shared services and market interest. |
| No NBA operation | Realistic tenants/events, fixed costs, transition and capital needs. |
| Full renovation | Incremental public benefit, all-in financing and secured private consideration. |
The former quantified no-deal gain and repair-recovery range are withdrawn. Future public spending, delayed maintenance and transition costs belong in both sides of the comparison.
How these numbers fit together
Verified describes what a source says, not that a proposed obligation is signed or funded. The reconciled ledger and sources →