191021

The City of Portland ordains:

Section 1.  The Council finds:

1. The Veterans Memorial Coliseum (VMC) is owned by the City of Portland and operated by Rip City Management, LLC, formerly known as and successor in interest to Portland Arena Management, pursuant to the Coliseum Operating Agreement originally executed on April 23, 1993.
2. Since inception, the Coliseum Operating Agreement has been amended seven times to clarify definitions, accommodate proposed VMC renovations, clarify parking management authorities and operations, modify certain fees and operational loss responsibilities, include certain landscaping service provisions, and update other minor business terms. All extension options have been exercised and unless amended, the Coliseum Operating Agreement will expire on June 30, 2023.
3. Ordinance No. 165510, approved by the City Council on June 4, 1992, exempted Coliseum operations from competitive bidding requirements because the operations of the new Oregon Arena (originally called the Rose Garden Arena and now known as the Moda Center) and the VMC are substantially integrated and co-dependent to a degree that separate operational entities would be cost-prohibitive, inefficient, and financially detrimental to both parties.
4. The VMC hosts over 100 events annually with typical attendance of around 400,000. This activity results in over $30 million in estimated annual economic impact to the region. In addition to concerts, amateur sporting events, corporate meetings graduations and other community events, the VMC is the home arena for the Portland Winterhawks, a Western Hockey League team.
5. The VMC and its location directly adjacent to the larger Moda Center arena creates opportunities for unique and impactful multi-court events such as the Phil Knight Invitational and Phil Knight Legacy NCAA basketball tournaments that will occur this November and are expected to generate over $10 million in economic impact as 16 men’s teams and 8 women’s teams play in 32 games over three days in three arenas (in addition to the Moda Center and VMC, the Chiles Center is hosting games).
6. Rip City Management with its predecessor businesses including Oregon Arena Corporation and Portland Arena Management have operated the VMC for most of the past thirty years in tandem with the Moda Center. Shared operations of the two arenas brings considerable operational efficiencies and benefits both the private operators as well as the City.
7. The Coliseum Operating Agreement is one of a set of Rose Quarter agreements entered into by the City and Oregon Arena Corporation (succeeded by Rip City Management) in the early 1990s that led to the development of the Moda Center, Rose Quarter Plaza, Rose Quarter Annex Building and several public and private parking facilities. One of the cornerstone agreements is the Arena Ground Lease, which provides the terms for lease of City-owned land beneath the Moda Center and other structures at the Rose Quarter.
8. The current term of the Arena Ground Lease expires on October 11, 2025.
9. Amending the Coliseum Operating Agreement to be co-terminus with the Arena Ground Lease will provide continued operation of the VMC by Rip City Management through the full term of the Arena Ground Lease and allow a single comprehensive discussion between the City and Rip City about the entire suite of Rose Quarter agreements including operations of and potential renovations to both arenas beyond 2025.

NOW, THEREFORE, the Council directs:

1. The City’s Chief Administrative Officer is hereby authorized to execute the 8^th Amendment to the Coliseum Operating Agreement in a form substantially in accordance with Exhibit A attached to this Ordinance.