Dundon has sought a 10-year buyout option, even though state legislation tied to Moda Center financing requires a 20-year lease, according to people familiar with the talks. City officials, meanwhile, have reportedly put the potential cost of settling the team’s lease obligations and forgoing litigation if it relocates at more than $1 billion.

That figure is separate from the roughly $600 million in public funding the team is seeking for arena renovations. The dispute centers in part on the current lease’s requirement that the Trail Blazers maintain Moda Center to a “first-class” standard. The city sees that clause as leverage; the team has viewed it as a possible legal threat.

This is not a technical disagreement. It goes to whether taxpayers should help finance a major renovation without a firm, enforceable commitment that the team will remain in Portland for the long term.

The negotiations grew more strained ahead of the team’s season opener. Plans for meetings with Dundon were canceled, and NBA representatives abandoned plans to come to Portland to help facilitate discussions. After the city supplied a figure addressing the “first-class” provision, Dundon agreed to meet with City Administrator Raymond Lee and deputy Donnie Oliveira at the team’s Tualatin practice facility, according to people briefed on the plans. It remained unclear whether other meetings with county and state leaders would proceed or produce progress.

Portland’s City Council approved a term sheet in August that would require the team to pay rent, accept a tax offset and agree to labor-harmony provisions. Those terms are among the sticking points for Dundon and his ownership group.

The calendar matters. If the council does not approve a new lease by year’s end, state leaders have said they may be unable to issue bonds approved earlier this year. Those bonds would provide $365 million toward the renovation package. Senate President Rob Wagner has said the Legislature is unlikely to reauthorize them in a future session.

Dundon has said publicly that moving the team is “not a conversation” and that he has four years to resolve the lease. People familiar with the negotiations say that timeline is unrealistic: the renovation plan was initially framed around completing the work in time for Portland to host the 2030 NCAA Women’s Final Four, and losing the state’s financing would leave a major hole in the funding plan.

Co-owner Sheel Tyle said the ownership group is working to reach an agreement and that keeping the team in Portland is its top priority. That assurance matters, but the terms matter more. A public commitment should be measured not only by statements of intent, but by the length and enforceability of the lease.

Portland has every reason to want the Trail Blazers to stay. The team is part of the city’s civic life, and a modern arena can serve residents and visitors for decades. But public officials also have a responsibility to make sure the benefits of a major public investment are not weakened by a short-term escape hatch.

If taxpayers are expected to help pay for renovations, the city should insist on clear protections: a durable lease, transparent obligations for arena maintenance and a fair allocation of financial risk. The answer is not to treat the reported $1 billion figure as a substitute for negotiation. It is to reach a credible agreement that gives the team a future in Portland without leaving the public to carry the cost if ownership changes its mind.