Introducing Stage Fright

December 1 is the deadline for city staff and PSU to present City Council with detailed costs and a funding plan for a new Broadway theater and adjacent smaller theater at PSU, along with a renovated, downsized Keller Auditorium. 

Over the next 10 weeks, Stage Fright will put the spotlight on the important issues, assumptions and risks surrounding a proposal that, to date, has received far too little scrutiny from the local media, elected officials and taxpayers.

We’re opening the curtain with the big picture. Putting a reality check on nine arguments being made by PSU boosters, city officials and certain special interests.

9 reasons why the City-PSU theater doesn’t add up
 

1. Claim: “The Keller is seismically unsafe.”

Reality Check
Seismic risks are real for many Portland buildings, but overstated rhetoric and inaccurate claims are being used to rationalize a nearly $1 billion dollar multi-theater plan the city has no way to fund and taxpayers cannot afford. Jesse Wolfe of Grummel Engineering evaluated the Keller and found a “highly resilient structure with few deficiencies,” sitting on solid, non-liquefiable ground. His conclusion supports fixing Keller's deficiencies rather than overstating them to justify a new theater. If the Keller is the “seismic death trap” Council President Jamie Dunphy described it as, then why did the City just authorize a seven-year agreement with Broadway Across America to continue shows there?

 2. Claim: “A new venue is needed to protect arts jobs and economic activity.”

Reality Check
Moving Broadway out of the Keller and away from downtown will destroy jobs. The Keller already brings 400,000 visitors downtown, supporting the hotels, restaurants, bars and other businesses clustered around the auditorium. Building a new Broadway theater at PSU requires taxpayers to fund a new parking garage and subsidize a new hotel when those businesses already exist around the Keller and are still trying to recover economically.

 3. Claim: “PSU + a smaller Keller expands Portland’s arts ecosystem.”

Reality Check
Before Portland increases its already underutilized theater capacity by 45%, the city should better use and maintain the theaters it already owns. The City’s own performing arts workgroup found Portland’s three largest public theaters were already dark 35% to 47% of the year and recommended increasing their use. No data indicates there is a market for more theater seats in Portland. More seats without more users will create the need for even deeper subsidies, which means higher taxes and fewer essential services.

4. Claim: “PSU creates educational and workforce opportunities.”

Reality Check
With declining enrollment, increasing tuition, staff layoffs and major cuts to academic programs, why is PSU spending big to get into the theater business? PSU is eliminating two academic departments and reducing six others as it works to close a projected $35 million deficit. If PSU wants to invest in a new theater on campus to advance its arts programs, the university should assume the financial risks and responsibilities – not entangle city government and taxpayers.

 5. Claim: “PSU will catalyze South Downtown revitalization.”

Reality Check
With downtown struggling, why should taxpayers spend hundreds of millions attempting to recreate a successful Broadway destination Portland already has? The Keller and its iconic fountain are surrounded by the hotels, restaurants, parking and public transit that Broadway and major event audiences need. Making PSU a comparable destination requires building a new theater, parking garages, hotel and restaurants and bars, plus transportation improvements. No planning professional would recommend moving Portland’s largest theater from the heart of downtown to an isolated site simply because the land is free.

 6. Claim: “Portland needs a modern, purpose-built venue.”

Reality Check
“New” doesn’t equal “necessary” or “affordable.” The Keller is aging, but it is fixable. Broadway shows regularly sell out, and the theater remains popular and profitable. Meanwhile, Portland faces a projected $100 million budget deficit, $600 million in Moda Center renovations and $300 million in deferred maintenance at existing theaters. This new proposal comes at a time when the city can least afford it. Instead of a false choice and artificial deadline, the city council should approve an affordable plan that invests in what already works. Metro’s 2026 facility assessment identified $10 million to $19 million in investments needed to keep the Keller operating at current service levels for the next decade. 

 7. Claim: “This is a once-in-a-generation civic investment.”

Reality Check
An expensive new city performing arts center requires a serious funding plan, not a shell game of state bonds for a parking garage and classrooms that still depend on nonexistent city-matching funds. Estimates from a few years ago assume it will cost the city roughly $450 million to build a new theater at PSU and around $250 million to fully renovate the Keller. When you include the cost of building a new parking garage and subsidized hotel that’s needed at the PSU site, this project quickly climbs toward $1 billion. There is a reason that, after four years of task forces and PSU lobbying, no actual financing plan has ever emerged. The City is advancing a new city-owned Broadway theater with PSU and a smaller Keller without knowing the ultimate price, who will pay for it, or whether both projects can ultimately be funded.

 8. Claim: “Portland must build a new Broadway theater at PSU to avoid the economic costs of temporarily closing the Keller for a full-scale renovation.”

Reality Check
Given the city’s budget realities, a full-scale Keller renovation should be put on hold, eliminating the need for an extended closure. Instead, the city should adopt a five-year, $15 million plan of deferred maintenance and improvements to the Keller. This will ensure the continued success of Portland’s largest theater, protect downtown businesses, and support the ongoing revitalization of downtown. Portland theater workers and arts organizations need our support. Keeping the Keller successfully operating supports the arts economy without the risks of additional public debt, subsidies and excess capacity.

 9. Claim: “The City isn’t committing money yet, so what’s the harm in continuing to discuss and debate this idea?”

Reality Check
Moving forward with an empty bank account is financially reckless and risky. The City and PSU have already spent four years of staff time and consultant fees advancing this project without having an accurate price tag, identifying funding sources or offering a financially sustainable operating model. The current plan contains no guarantee the Keller will actually be renovated. Recently, PSU requested a $44 million down payment from the city by December 1 – without even providing an itemized list of what the funds would be used for. 

Why is the City spending taxpayer money planning projects it can’t afford?

At a recent city council hearing, Councilors Olivia Clark and Sameer Kanal (not generally aligned on a lot of issues), both said the quiet part out loud: 

Clark: “We don't have the resources.”
Kanal:  “We’re broke.”

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