City Life August 11, 2026

Portland City Council City Life Committee 08/11/26

Council's backing a new $137M+ PSU performing arts venue, but only softened language committing to "support planning" — no money's locked in yet, and staff say the city's design costs alone will hit $44M. Ryan voted no, saying he still doesn't know how it gets paid for or what happens to the Keller.

Agenda

View full agenda on portland.gov ↗

Summary

A resolution supporting a new city-owned, roughly 3,000-seat Broadway-capable performing arts venue at Portland State University moved forward to full council with a due-pass recommendation, but only after councilors added several amendments to guard against premature financial commitments. Councilor Avalos led the effort, replacing language that 'affirmed the city's commitment' with softer wording about 'supporting planning and predevelopment,' and adding requirements that the administration return to council with a full financial plan — including total project cost, a defined capital stack, and the city's contribution — before any money is committed. Staff estimated roughly $44 million would eventually be needed from the city for design work on the city-owned portion, though officials stressed no funding is being approved yet. The state has committed $137 million toward the PSU education and parking components. Councilor Ryan voted no, saying he could not support moving forward without clarity on how it would be paid for or on the Keller's future.

The committee also protected the Keller Auditorium's role, adopting an amendment (Clark-Zimmerman) directing the city to keep the Keller open through any construction and to seek funding for its eventual renovation into a smaller theater. Councilors acknowledged the Keller's seismic vulnerabilities and deferred maintenance, along with strong public attachment to the building. The votes on these amendments largely passed 4-1 or unanimously, with individual councilors dissenting on specific pieces.

Separately, the three District Two councilors — Pirtle-Guiney, Ryan, and Kanal — presented a resolution directing the city to begin negotiating with Albina Vision Trust as the development partner for city-owned parcels around the Moda Center in lower Albina, an area whose Black community was displaced by past urban renewal and I-5 construction. An amendment added a 12-month negotiation window and removed 'exclusively' language after Councilor Morillo raised concerns about locking the city into a sole-source arrangement. Officials emphasized the resolution does not transfer land or commit funds; any final agreement would return to council. Next steps include the PSU project commitment agreement due December 1, continued Moda lease negotiations expected to conclude in December, and the rescheduled PFAS firefighter suits item expected in late September.

Key Points

  • Committee advanced a resolution supporting a new Broadway-capable performing arts venue at Portland State University while planning for the future of the Keller Auditorium
  • Multiple amendments were adopted to add financial guardrails ensuring council approval before any city funds are committed to the PSU venue project
  • A resolution to begin negotiating with Albina Vision Trust as development partner for city-owned parcels near the Moda Center moved forward

Votes (7)

Passed

Avalos Amendment 1 (Performing Arts Resolution)

Replaces 'affirm the city's commitment' with 'support advancing planning and predevelopment' for a potential new Broadway-capable venue, subject to future council review and approval of the financial plan

Yes: 5 No: 0
Passed

Avalos Amendment 2A - First Half (Performing Arts Resolution)

States that adoption of the resolution does not authorize, appropriate, or commit city funds for development or construction

Yes: 5 No: 0
Passed

Avalos Amendment 2A - Second Half (Performing Arts Resolution)

Requires the DCA to return to council with a detailed financial plan before executing any agreement that financially obligates the city; removed 'return on invested capital analysis' language

Yes: 4 No: 1
Passed

Avalos Amendment 3 (Performing Arts Resolution)

Changes the project commitment agreement with PSU to develop a 'proposed' capital funding strategy and preserves council approval before any financial commitment

Yes: 5 No: 0
Passed

Clark-Zimmerman Amendment 2 (Performing Arts Resolution)

Directs the city to identify and pursue funding sources where feasible for the future of Keller Auditorium, decoupling Keller funding from the PSU venue funding

Yes: 4 No: 1
Passed

Referral of Performing Arts Resolution (Document 2026-270)

Refer the amended resolution to full council with a due-pass recommendation to advance a new Broadway-capable venue at PSU and initiate planning for the future of the Keller

Yes: 4 No: 1
Passed

Reorder Agenda Item Four to Future Meeting

Move the PFAS chemicals and firefighter suits item (submitted by Councilors Zimmerman) to a future committee meeting, expected in late September

Action Items

  • DCA to develop a project commitment agreement with PSU by December 1, 2026, establishing scope, schedule, and governance framework
  • Administration to return to council with a detailed financial plan (capital stack, total project cost, city contribution, operating and maintenance obligations) before any binding agreement on the PSU venue
  • Staff to follow up with council on capital investment needs for the Keller Auditorium and options for its future use
  • PFAS firefighter suits item to be rescheduled for late September
  • City administrator to negotiate in good faith with Albina Vision Trust within a 12-month window on Moda Center-area parcels
  • Committee to take up future discussion of the P5 venue transfer and management of city venues

Issues Discussed (14)