The debate over the $600 million renovation of Portland’s Moda Center has grown increasingly contentious. The tensions between the franchise and Portland city officials are escalating as negotiations over a new lease continue. On one hand, a source close to the Blazers strongly criticized the city’s proposal, and on the other, Portland residents gathered at a community town hall over the weekend.

While the public debate continued, tensions behind the scenes appeared to escalate even further. ESPN’s Brian Windhorst read the new report from The Oregonian and stated the relationship between both sides has deteriorated sharply.

“It’s getting worse by the day, ” said the senior analyst and insider on The Hoop Collective. “The rhetoric between the politicians and the Blazers organization is deteriorating. And there are some incredible quotes attributed to this top Blazers official in this story. I think it’s important; there’s been a lot of back and forth and machinations that have happened here. And if you’re a Blazers fan, maybe you followed them. There’s no way that I could completely summarize them here.

“I have no idea what’s going to come out of that meeting, but it could be the declaration of all-out war. This is a response to the city sending the Blazers what they wanted in the lease. They want the Blazers to sign a lease to get the money to renovate their arena.”

Windhorst also revealed that a key meeting involving the Blazers’ Board of Directors, which represents the team’s ownership, is scheduled to meet on Monday. This could dramatically change the course of negotiations.

Adding to the growing tension, a source close to the Trail Blazers told The Oregonian that the city’s proposed lease included conditions the team was unlikely to accept. The source specifically objected to requirements for a unionized workforce and $3 million in annual payments, suggesting the franchise could walk away if city leaders no longer wanted the team.

Amid these issues, Portland councilors gathered at a town hall to discuss the proposed $600 million Moda Center renovation after the city sent the Trail Blazers a draft term sheet. The proposal includes a binding 20-year commitment to keep the franchise in Portland while capping public funding for the project.

Mayor Keith Wilson has pledged $120 million, with Multnomah County and the State of Oregon expected to cover the remaining public contribution. However, city officials have yet to determine how Portland would finance its share. The proposal has divided public opinion.

Supporters argue that the renovation would create jobs, support local businesses, and strengthen the community by keeping the Blazers in Portland. Critics, meanwhile, believe taxpayers should not bear such a high cost and argue the Trail Blazers and owner Tom Dundon should contribute more toward the project.

As of now, the Portland City Council is set to come together on August 12 to vote on a final version of the term sheet.