Spectator Venues & Visitor Activities Fund

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Breadcrumb: Fund Summaries > Community & Economic Development. > Spectator Venues & Visitor Activities Fund

City of Portland Fiscal Year 2026-27 Proposed Budget Community & Economic Development> Spectator Venues & Visitor Activities Fund Spectator Venues & Visitor Activities Fund Fund Summary 2024-25 Actuals 2023-24 Actuals 2025-26 Revised Budget 2026-27 Proposed Expense $93,893,049 $88,799,750 $58,888,883 $30,566,650 Bureau Expense $42,237,557 $8,533,739 $44,227,772 $19,485,778 Fund Expense $6,024,497 $4,127,843 $14,661,111 $11,080,872 Contingency $0 $0 $11,135,522 $7,259,519 Debt Service $5,816,897 $3,908,321 $3,261,825 $3,260,250 Fund Transfers - $207,600 $219,522 $263,764 $561,103 Expense Unappropriated $45,630,995 $76,138,168 $0 $0 Ending Fund Balance $45,630,995 $76,138,168 $0 $0 Revenue $93,893,048 $88,799,750 $58,888,883 $30,566,650 External Revenues $17,754,880 $68,662,288 $13,257,890 $12,479,140 Bond & Note $0 $54,080,000 $0 $0 Proceeds Charges for Services $14,666,718 $12,316,894 $11,526,890 $11,544,890 Intergovernmental $531,000 $442,500 $531,000 $413,000 Miscellaneous $2,557,162 $1,822,894 $1,200,000 $521,250 Internal Revenues $76,138,168 $20,137,462 $45,630,993 $18,087,510 Beginning Fund $76,138,168 $20,137,462 $45,630,993 $17,800,000 Balance Interagency Revenue $0 $0 $0 $287,510 Fund Overview The Spectator Venues & Visitor Activities Fund (SVVAF) is a self-sustaining enterprise fund established to provide oversight of City- owned spectator facilities and to support City travel, tourism, and visitor development efforts. The fund accounts for resources and requirements for program activities and administration of the facilities. Additionally, it is responsible for City-obligated direct expenses at the City-owned facilities and payments on certain debt obligations. Major program activities include: facility operations, maintenance, repair and capital improvements; financial planning and contract administration; special projects; and liaison activities among City bureaus, other governmental agencies, and private parties, including a broad range of organizations engaged in travel, tourism, and visitor development activities. ROSE QUARTER Rose Quarter facilities include: Moda Center with attached Garden Parking Garage, Veterans Memorial Coliseum (VMC), East/West Parking Garages, Plaza, Benton Lot, and Phase II Lot. Moda Center is the home venue for the Portland Trail Blazers, a National Basketball Association franchise team. In addition, in spring 2026, Portland’s new Women’s National Basketball Association team is 1092

City of Portland Fiscal Year 2026-27 Proposed Budget anticipated to start playing home games in Moda Center. The VMC is the home venue for the Portland Winterhawks, a Western Hockey League franchise team. The Rose Quarter venues host a variety of other sports, entertainment, community, and arts and/or cultural events, as well as a variety of exhibitions, conferences, and trade shows. User fees and parking receipts from the Rose Quarter’s venues typically account for over 75% of the annual projected revenue for the SVVAF. The Rose Quarter facilities are operated under several agreements, including the Veterans Memorial Coliseum Operating Agreement, the Arena Operating Lease, and the Amended and Restated Development Agreement. The current term of all Rose Quarter agreements end in October 2030 with an option to extend at the Operator’s discretion to October 2035. PROVIDENCE PARK Providence Park, a Major League Soccer (MLS) facility since 2011, serves as the home venue for the Portland Timbers, a Major League Soccer franchise team; and the Portland Thorns, a National Women’s Soccer League (NWSL) franchise team. The stadium also periodically hosts other major events such as football games, ultimate frisbee, the Special Olympics, and major concerts. The City’s share of the 2011 renovation cost is being paid through 20-year bonds that will be retired in FY 2026-27. Final payment on the 20-year bonds for the stadium’s 2001 renovation were made in FY 2022-23. A 25-year operating agreement with Peregrine Sports, LLC took effect on January 1, 2011, and provided the fund with a gradually increasing flow of revenue from user fees and license payments for the first seven years of the agreement. Those payments decreased in operating-year eight (calendar year 2018). FY 2017-18 was the last year in which any license payments were made to the City. In June 2019 the 4,000 seat, $75 million, privately financed East Side Expansion opened. To help offset project costs, certain limited-term exemptions on payments of surplus user fees owed to the City were granted to Peregrine Sports. The end of license payments and limited-term exemptions mean that FY 2022-23 was the first year the City received ticket revenues since FY 2017-18. FY 2026-27 is the first year the City will collect surplus user fees on the new expansion seats. The City’s net expenses to operate and maintain Providence Park, and to cover the associated debt service, have historically relied on net income from Rose Quarter operations. The return of large concerts to Providence Park in 2024 has increased user fees collected by the City. VETERANS MEMORIAL COLISEUM Based on a City Council decision in 2010, the SVVAF program, through the Rose Quarter’s contracted operators, continues to operate the VMC as a spectator and event facility. The City has continued to invest in strategic enhancements and critical deferred maintenance necessary to keep the venue operational. However, to extend the life of the building, increase reliability and appeal for events and patrons, the VMC requires major investment beyond the capacity of the SVVAF. The approval of the Second Amendment to the Visitor Facilities Intergovernmental Agreement (VFIGA) in spring 2020, provided debt service for $40 million (escalated) of bond financing for a VMC renovation. With escalation, this equates to $53 million in City bonds. Bond issuance was approved by City Council in January 2024, and the bonds were sold in Spring 2024. Construction on improvements began in summer 2024 and will be completed by the end of 2026. Construction at the active venue was completed primarily during the 2024 and 2025 summer periods in between hockey seasons. Only a few scope items remain to be completed in 2026. With completion, the project will result in improvements to key building systems including major electrical systems serving the building, replacement of all original seats with new, wider seats, renovation and expansion of all restrooms, improvements to rigging capacity and functionality, addressing the safety of the building with upgrades to meet code around fire, life, safety, and egress. The result of the investment will be far safer, more accessible, more reliable, more efficient, and more enjoyable venue. While many of the most critical needs of the facility are being addressed through this project, additional resources will be needed in the future, as this investment is not sufficient to address all needs of the 66 year old arena. MODA CENTER In FY 2024-25, the City acquired the Moda Center arena from the private owners and entered into a new operating lease with Rip City Management and the Portland Trail Blazers. The new operating lease runs through October 11, 2030 with an option for a five- year extension. The agreement also includes a City commitment to reinvest certain City revenues generated by Portland Trail Blazers home games into sustaining improvements to the arena. The first project that will benefit from City investment is the replacement of the center hung scoreboard and end zone video boards. The City will contribute no more than 50% of the cost of the project which is scheduled to be completed by the end of October, 2025. As of March 2026 conversations about a new 20-year Moda Center lease and a major renovation are ongoing with the prospective new owners of the Trail Blazers franchise. The State has committed $365 million to the project, pending a series of requirements. 1093

City of Portland Fiscal Year 2026-27 Proposed Budget Among those requirements are funding commitments from the City and Multnomah County. Tourism Support: Program staff perform liaison activities for the City to the sports, travel and tourism industry – success is critical to the venues and the City’s overall economy. In FY 2023-24, City Council approved changes to the Tourism Improvement District, stabilizing funding for tourism marketing and promotion efforts key to industry recovery. Managing Agency Community and Economic Development Service Area, Deputy City Administrator Donnie Oliveira. Significant Changes from Prior Year FY 2026-27 is scheduled to be the first year with a significant number of WNBA games played at Moda Center. This should have a positive impact on SVVAF revenues. 1094

Parent: Community & Economic Development. · PDF: pp. 1092-1094 ↗