PORTLAND, Ore. (KATU) — Portland city leaders and the Blazers’ new ownership group met Thursday for the first time since the ownership group–dubbed Rip City Rising–officially took the reins.

Negotiations are underway for a long-term lease at Moda Center and roughly $600 million in publicly funded renovations.

KATU sat down with City Administrator Raymond Lee shortly after that meeting.

“The city of Portland owns Moda Center, so this is a public asset. No matter what the Blazers’ decision is in this, we still have to make that investment into the Moda Center,” Lee told KATU.

The state recently approved up to $365 million in state funding- dependent on the Blazers signing a 20-year lease to remain at Moda. The state would issue bonds for the funding that would be repaid by income taxes paid by players and other performers at Moda Center.

RELATED | Oregon House approves Moda Center renovation plan as 2026 session ends

Lee said the city’s portion of the project would do more than just elevate the arena for the NBA and its fans.

“Right now, and in the past, we’ve been a flyover venue because of the age of our facility. We’re going to have to increase and enhance that facility to get the concerts and the events at the Moda Center that we want to see that drive about the economic change that we want to see,” Lee said.

Moda is used more than 100 nights a year by performers other than the Blazers; it’s also home to the city’s new WNBA team, the Portland Fire.

The city, state, and Multnomah County will be a part of negotiating the lease and the funding for renovation work.

“This is going to be a negotiation between us and the state and the Blazers’ owners’ group, and we’re very committed to it. We believe that the Blazers are Portland, and we’re committed to ensuring that continues to be. But we know as we go through this, this is a business decision that we have to make and for the city council to make ultimately to make sure that they make the best decision for Portlanders overall and that a decision that is going to help the city continue to grow,” Lee said.

Lee described the first meeting between the group as “productive.”

“There’s a lot of conversations from the council end of how they’re going to be engaged. I know there’s going to be a ton of questions as it relates to the community benefits and the impact of a deal like this, so we want to make sure we’re keeping people engaged on this conversation. We want to make sure they’re informed, and we want to be intentional about how we bring these ideas to the table for the council to ultimately make a decision,” Lee said.

What are the new owners saying?

KATU Sports Director Guillermo Mota asked the new owners at an introductory press conference what commitment they could make to fans worried the team could move.

Tom Dundon said he heard similar grumblings when the Texas-based billionaire bought the NHL’s Carolina Hurricanes. The team did not leave North Carolina.

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“I haven’t spent any time on anything other than trying to figure out the renovation and the lease, and that’s kind of all I focused on,” owner Tom Dundon said.

Sheel Tyle, the founder and CEO of global investment firm Collective Global, is the only part-owner with direct ties to Portland. He moved to the city when Governor Tina Kotek named his wife the director of the Oregon Health Authority in late 2023.

He added to Dundon’s comments.

“Tom would not have asked me to join this group had [moving] been on the table, and so I just want you guys to know we’re optimistic people; we met with the mayor today,” Tyle said. “We know that the state has done some amazing work on this also. We’re full speed ahead.”