another article at OLive:
Kotek said proposal puts state "in the ballpark" of what it will take to keep the Trail Blazers from moving.
www.oregonlive.com
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I noticed this:
View attachment 81242
maybe I need education on this, but I searched for what the interest rate would be on a 20 year municipal bond and got this:
'
Current interest rates for 20-year Oregon municipal bonds vary, but generally fall in the
low to mid-4% range for high-grade (AA/AAA) issues, with some recent national benchmarks around 4.20%, while overall market yields for longer-term bonds are closer to 4.79%, reflecting the tax advantages and broader market trends, so expect rates to be competitive with these benchmarks. Specific rates depend heavily on the issuer's credit quality, market demand, and the bond's exact maturity'
so, a 20 year duration on the bonds that would be a total amount of 360M and have a debt service cost of somewhere around 4.5% And paid for by a jock tax estimated to raise around 20M/year. The debt service would be around 16M/year, and a 20 year retirement schedule would put the annual cost to be around 26M/year; which is 6M more than the jock tax would raise. And that does not account for management costs of the 360M in bonds or a call-schedule. I suppose that might be a bridgeable gap but like so many things about this deal, it's pretty vague
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then this:
View attachment 81244
in other words, there's little substance to this bill. It's just the first baby step. A snapshot of intent and the focus might change before the next baby step
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and this:
View attachment 81245
so...no guarantee from the commissioner's office this will be enough. And I haven't seen any guarantee from Dundon either. This looks like 3 different governments just winging a vague proposal thru the system while hoping it will do the trick
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"
As part of the hearing, Multnomah County Chair Jessica Vega Pederson told the committee that the county was prepared to contribute $88 million to the project through its motor vehicle rental tax and business income tax, which is up from the $77 million the county had previously agreed to commit.
Wilson said that the city would provide $120 million toward upfront costs while paying $14 million annually. However, after some within City Hall expressed skepticism over last week’s report by The Oregonian/OregonLive that Portland leaders were pushing to access the coveted dollars in the city’s clean energy fund for the project, Wilson declined to specify how exactly the city would pay for its piece of the puzzle. He noted only that he had some “placeholder” numbers to present to council and pointed to fees from tickets and parking at Moda Center events."
really looks like the local angle is crumbling a bit around the edges
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finally, this:
Sen. Bruce Starr, a vice-chair of the Rules Committee and the Senate Minority Leader, pressed Trail Blazers president Dewayne Hankins on the rationale behind the Moda Center plan. If the then-Rose Garden was built in 1995 with significantly less public investment but came with a 30-year lease, he questioned why the team should be allowed to make a shorter commitment to the city if the building was renovated entirely with public funds.
Hankins said that modern arenas have lifespans of roughly 50 years and therefore the team would not consider another 30-year lease. “The work that has to be done to the building we believe can sustain (it) for the next 20 years,” he said.
Starr, a Republican from Dundee, asked to what degree the Trail Blazers had explored constructing an entirely new arena to create a runway of five decades instead of just two.
“In reality,” Hankins said, “a new building would be twice as much (money). We thought the responsible thing was to do a renovation.”
to me, this is a compelling question: whether to spend 600M to renovate a 30 year old building for a 20 year lifespan. Or, spend 1.2B to build a new arena with a 50 year lifespan.
I said this earlier in the thread, but I really think one of the first steps is to get Dundon and the NBA to agree to a ironclad long term commitment before the state, city, and county expend much more effort. So far, I'm seeing the 3 different governments jumping thru hoops while the billionaires commit to nothing
