The Metro Council has voted to transfer management of the Portland’5 Centers for the Arts back to the City of Portland no later than July 1, 2027.

The three downtown buildings with five theaters are owned by the city but have been managed by the elected regional government for more than three decades. Although Metro and Portland officials have been discussing transferring their management to the city for months, the Nov. 20 vote guarantees that it will happen.

The resolution approved by the council directs Metro’s chief operating officer to negotiate and sign a management termination agreement with the city by Dec. 30. If an agreement cannot be reached, the COO is authorized to unilaterally terminate the existing one, a process that must be completed in 18 months.

The Portland’5 includes three buildings within blocks of each other in downtown Portland. They are the Keller Auditorium at 222 S.W. Clay St.; the Arlene Schnitzer Concert Hall at 1037 S.W. Broadway; and just across from the Schnitzer on Southwest Main Street, the Antoinette Hatfield Hall, which houses the Brunish, Newmark, and Winningstad theaters.

Portland Councilor Jamie Dunphy (Dist. 1) testified on behalf of the city in support of the resolution at the beginning of the hearing. The city had previously agreed that Metro should manage Portland’5, as it is commonly called, as regional assets in 1989. But even though the idea was well-intentioned, Dunphy said, it has not worked out, with many organizations that use them confused about who is in charge and Metro not funding all necessary maintenance.

“Portland is now ready to lead. We have a strong Arts and Culture Office, we have a new form of government with an administrator in charge, and we have a City Council that strongly supports the arts,” Dunphy said about the new form of government approved by city voters in 2022 that took effect in January.

Metro Councilor Mary Nolan (Dist. 5) was concerned that Metro could be seen as stepping back from a leadership role in the regional arts scene. She eventually voted for the transfer, however, after staff suggested the change would encourage Metro to create more regional arts programs without having to focus so much on downtown Portland.

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Although the management arrangement benefited the city by cutting its costs for operating and maintaining the buildings, the lingering problems became an issue last year when the city began studying the future of the Keller, which was built in 1917 and cannot withstand a serious earthquake. Last October, the previous City Council proposed that a new city-owned performing arts center be built at Portland State University, and that the Keller then be closed for a complete renovation that could last up to 24 months. Events that are traditionally held at the Keller, including the popular touring Broadway Across America shows, could play interrupted at the new center during the renovation.

But the process also revealed complaints about the current management of the Keller and other Portland’5 venues. That prompted the appointment of a Performing Arts Center Workgroup, which recommended in June that management of all buildings be transferred back to the city. Negotiations began after the recommendations were reviewed by the Portland and Metro councils.

As revealed during the Nov. 20 hearing, many questions remain to be resolved, such as guaranteeing that all 500-plus employees who operate the venues remain employed after the transition. Dunphy and Metro staff assured the council that protecting employees is a top priority.

Portland “two-venues” proposal updated

Two days before the Metro hearing, the City Council’s Arts and Economy Committee was updated on Metro’s upcoming decision to return the management of Portland’5 to the city. Staff reminded the five members of the Arts and Economy Committee about the importance of the theaters to the regional economy. The presentation said there were 800,000 visits to 710 public events in the theaters in the most recent fiscal year, generating $90 million in economic activity and creating 500 full- and part-time jobs.

Some of the councilors seemed surprised to learn that the Metro Council was about to vote on the management change, even though the City Council’s committee had been briefed on the process and informally approved it in July. They included co-chair Dan Ryan (Dist. 2), who asked if anyone from the city was planning to attend the meeting. Co-chair James Dunphy (Dist. 1) said he had been invited to testify, but did not know yet what he was going to say.

City Councilor Olivia Clark (Dist. 4) was concerned about the implications of the transfer, especially about how much deferred maintenance might need to be funded. Staff said Metro is conducting an assessment of the physical conditions of all three buildings, with the results to be available by the end of the year. The Nov. 20 Metro Council vote will transfer management of Portland’5 back to the city regardless of the deferred maintenance costs, however.

The City Council previously voted to direct the City Administrator to develop a long-term maintenance plan for all city assets, which will include the Portland’5 venues.

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The committee was also updated on the progress of the “two-venue” proposal approved by the previous City Council.

Portland State University said that the seven-plus acre site it has proposed for the new city-owned performing arts center could ultimately support $1.8 billion in new development, including a 1,200-seat PSU theater, classroom buildings, and a hotel and conference center. The cost of the city-owned center is estimated at $358 million. PSU already has secured $155 million in state and other funding for its parts of the project, although none of it is available for the proposed city-owned center.

The nonprofit Halprin Landscape Conservancy that supports the Keller Fountain updated its proposal for the adjacent auditorium, which it calls 21^st Century Keller. The organization supports the PSU-first strategy to ensure the continuation of Broadway and other large events, but wants to be sure the new council supports its proposal to completely modernize the existing buildings.

The cost is estimated at $236 million to $286 million, depending on whether construction is paused to resume performances. Potential funding sources include a future $200 million property tax bond. Advocates presented an August 2024 DHM Research poll that said 60% of Portland voters would support such a measure.

The City Council is not expected to make a decision on funding either or both of the projects until next year.

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• “Portland’5 Centers for the Arts faces management change, physical needs assessment,” a previous Oregon ArtsWatch story on the management of Portland’5, can be found here.
• “Two homes for Broadway shows? Portland aims for a double,” a previous story on the future of the Keller Auditorium, can be found here.

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