In 1989, Portland and Metro established a decision for the elected regional government to oversee the five city-owned downtown performing arts venues, collectively known as the Portland’5 Centers for the Arts.
That decision is now in jeopardy of being reversed, even as the reasons for the initial arrangement still hold, raising numerous questions about the financial implications, particularly the deferred maintenance costs that could amount to millions.
The City Council is currently faced with a significant question regarding the expenditure of hundreds of millions of dollars on constructing a new performing arts center at Portland State University.
Additionally, they must consider the renovation of the Keller Auditorium, a major venue within the Portland’5 lineup. This proposal, approved by the previous council last October, aimed to maintain the presence of popular touring Broadway shows in the city, but the current council does not feel obligated to adhere to it.
Capital expenses associated with repairs, renovations, and new construction are projected to exceed $1 billion, with funding sources yet to be determined.
A decision by the council is not anticipated before next June, when the to-be-appointed Future of Large-Scale Performing Arts Steering Committee will present recommendations for the Keller and PSU projects.
By that time, a Metro-commissioned assessment outlining the deferred maintenance and other physical needs of the Portland’5 venues is expected to be completed.
However, as of now, no process has been established for responding to the findings of this assessment.
“The Mayor is engaged in discussions with partners at Metro, arts organizations, and the community regarding these recommendations, and we look forward to the next steps,” the city’s Office of Arts & Culture shared with Oregon ArtsWatch about the ongoing conversations.
They expressed awareness of the significance of these assets and their contribution to the city’s economy and vitality.
City Council member Dan Ryan underscored the importance of maintaining and upgrading the performance halls.
He stated, “World-class performing arts venues like Keller Auditorium drive Portland’s economy, which is essential as we aim to revitalize downtown.”
He emphasized the need for updated acoustics and improved infrastructure to ensure that this city-owned venue remains a key entertainment destination for future generations of Portlanders.
Ryan noted that PSU’s ambitions for a new student performing arts center should complement Keller’s positive influence on downtown.
He stressed the importance of prioritizing livability and safety for both PSU students and the arts patrons, seeing this as crucial for activating both the Keller and the PSU campus in a beneficial manner.
“The City’s Future of Performing Arts Venues Steering Committee must provide a decisive recommendation soon, before we become entangled in another election cycle,” he warned.
“Portland went dark during the pandemic. We cannot allow our venues to go dark once more.”
Changes in management priorities are underway, as the Portland’5 Centers for the Arts comprises three distinct buildings located within close proximity in downtown Portland.
These venues include the Keller Auditorium at 222 S.W. Clay St., the Arlene Schnitzer Concert Hall at 1037 S.W. Broadway Ave., and the Antoinette Hatfield Hall, which houses the Brunish, Newmark, and Winningstad theaters across from Southwest Main Street.
There is little doubt that Portland’5 positively impacts the economy of the regional area, which includes Multnomah, Washington, and Clackamas counties, all represented by Metro.
The elected regional government reports that the venues attract over 800,000 attendees annually, creating a platform for both local and touring artistic organizations and contributing more than $90 million to the regional economy.
These figures elucidate why the City Council and Metro Council have regarded these venues as regional assets with the potential for collective management to benefit the economy of the area.
Thirty-six years prior, they formalized this arrangement via an Intergovernmental Agreement, which also included several other city-owned venues transferred to Metro’s care.
A 2011 Portland audit indicated that the outsourcing agreement proved beneficial for the city, noting that the venues had been well managed and that substantial financial responsibility and risk had been transferred to Metro.
The audit also highlighted that many recent capital improvements had been funded without input from the city, relying on revenue reserves from Portland’5 and support from the Portland’5 Foundation.
Conversely, there are valid arguments for the city to reassume control over the Portland’5 venues.
A Metro audit conducted in 2022 unearthed numerous critical issues within the management structure, illustrating confusion among the arts organizations utilizing the venues and a lack of a clear plan for funding ongoing maintenance.
Such complaints intensified during the city council’s evaluation of the Keller Auditorium’s future last year, leading to the endorsement of the “two-venue” proposal in October 2024.
In this context, the city’s soon-to-be-implemented plans included the new PSU center projected at $358 million and the Keller renovation estimated at $236 million.
Factors such as inflation and necessary infrastructure adjustments could push total costs beyond $750 million before any construction begins.
Subsequently, the city has engaged Hunden Partners to conduct a Market Feasibility Study aimed at determining whether adequate patron support exists for both a new arts center at PSU and a renovated Keller.
This study is anticipated to complete by the end of the year and will be presented to the forthcoming 11-member steering committee.
In preparation for a potential handover of management of Portland’5 venues back to the city, Metro has assigned the Sazan Group the task of conducting a Facility Condition Assessment.
This evaluation is set to commence in September and reach completion by the year’s end.
Currently, there is no estimate available regarding the costs associated with deferred maintenance and necessary upgrades at Portland’5, but expectations lean towards significant investment required.
As the City Council initiated discussions regarding the proposal to create two Broadway-ready performing arts centers in October 2024, both the City and Metro Councils concurrently passed resolutions to form a Performing Arts Venues Workgroup.
Tasked with identifying both immediate and long-term improvements, this 19-member workgroup convened bi-weekly from January to May 2025.
The report from the Workgroup was released in July, advocating for the city to take sole ownership and management responsibilities for the venues.
Moreover, it critiqued the reliance on ticket-generated revenue for maintenance purposes.
The group urged both councils to start a process for dissolving the management agreement while simultaneously assessing the venue management needs.
During a hearing on July 8, the Arts and Economy Committee of the City Council informally backed the recommendations provided by the Workgroup.
Meanwhile, the Metro Council expressed agreement during a work session on July 15.
The 1989 Intergovernmental Agreement grants the Portland Mayor the authority to unilaterally terminate the management arrangement without requiring a vote from either the city or Metro councils.
However, councilors have indicated that reaching a mutual agreement between both parties would be preferable in order to minimize potential disruptions.
Metro staff members are currently formulating a resolution expected to gain approval following public hearings, the schedule for which has not yet been determined.
Even in the event that both parties concur on Metro stepping back from management of Portland’5 venues, it remains imperative to recognize them as regional assets.
Beyond their economic contributions, these venues have a strong supporter base among residents of the surrounding areas and beyond.
Data from Metro indicates that in 2024, only 36% of tickets for Portland’5 events were purchased by residents of Multnomah County, Portland’s primary city.
The distribution of ticket sales suggests that 20% of tickets came from residents of Washington County and 12% from Clackamas County.
In total, 68% of tickets sold were bought by patrons from counties represented by Metro, with 10% purchased by residents of other Oregon counties and another 10% coming from Clark County, Washington.
An additional 3% of tickets were sold to individuals in various Washington counties, while 9% were attributed to people residing outside Oregon and Washington.
This regional appeal was further corroborated by a transportation study tied to the Keller and PSU proposal.
Analysis of ticket sales for the performance of Six: The Musical at Keller, staged from April 29 to May 4 of this year, revealed that 36% of attendees traveled from locations south of downtown, including Tigard and Lake Oswego.
Furthermore, 22% came from north of downtown, including Vancouver, Wash., while 21% were from west of downtown, including Beaverton and Hillsboro.
The City Council is not expected to make any definitive decisions regarding the future of the Portland’5 venues and the potential new performing arts center at PSU until July 2026, after the upcoming advisory committee presents its findings.
By that time, the comprehensive costs of maintaining, upgrading, and diversifying the city’s downtown performing arts centers will likely be much clearer, including the total anticipated expenses.
image source from：orartswatch
