Rose Garden Arena

The Rose Garden is the main sports arena in Portland, Oregon, and is currently owned by Global Spectrum, a company which manages sports facilities (and also owns a few sports franchises). The arena, built in 1993; is capable of seating over 21,000 spectators for basketball. At the time of its construction, the arena was considered a state-of-the-art facility; newer facilties have since surpassed the Rose Garden in amenities.

It was built in 1993 by Paul Allen, the owner of the Portland Trail Blazers NBA team, who are the arena's primary tenant. The name was chosen both to reflect the Portland's well-known status as the Rose City, and also in reference to the famous Boston Garden and Madison Square Garden arenas in Boston and New York City, repectively. The arena was initially owned by the Oregon Arena Corporation, a privately-held corporation which was solely owned by Allen. It's construction funded in part by a $155 million loan from a consortium of lenders who included TIAA-CREF, Prudential Insurance, and Farmers Insurance.

The financing of the Rose Garden construction was widely hailed at the time of an example of public-private partnership; most of the costs were borne by Allen rather than by taxpayers. The primary public contribution of the project was the transfer of the underlying land, as well as the adjacent Memorial Coliseum, from public ownership to private ownership. (The tract of land containing both arenas; as well as adjacent businesses and parking structures, is known as the Rose Quarter). This deal occured in an era in which it was common for team owners to demand public financing of new arenas and stadiums (using the threat of moving the sports franchise as leverage).

Claiming the local economy was responsible for reduced revenues which made it unable to make payments on that loan, the Oregon Arena Corporation filed for bankruptcy February 27, 2004. The bankruptcy proceedings began September 9, 2004. Several factors contributed to the bankruptcy. The initial loan was made on unfavorable terms to the Oregon Arena Corp (an above-market interest rate coupled with a prohibition on early repayment). The opening of the Clark County Amphitheater in nearby Vancouver, Washington provided the Rose Garden with significant competition as a concert venue. The Portland Trail Blazers (also owned by Allen) were not drawing as well due to perceived character issues with the team (which was at the time was commonly referred to in the media as the "Jail Blazers". And many of the corporations who leased skyboxes in the arena (a primary source of revenue) were declining to renew their leases; in some cases due to the economy; in other cases due to the team's negative reputation.

The bankrupty filing was widely criticized in the local media and elsewhere. Allen, a billionaire, clearly had sufficient personal assets to repay the loan in full. As the Oregon Arena Corporation was a separate legal entity, Allen had no legal responsibility to do so; however the bankruptcy filing was perceived as an example of a wealthy individual taking advantage of "loopholes" in the law (the separate legal status of OAC) to get out from under a debt he was simply unwilling to pay. However, it should be noted that the terms of the loan specifically prevented early repayment; and the creditors were unwilling to waive the terms of that agreement.

As a result of the banktruptcy proceedings, the Oregon Arena Corporation was dissolved; and their assets (the Rose Quarter) were purchased by Global Spectrum, Inc. Global Spectrum has since invested millions of dollars into refurbishing the arena. The Trail Blazers (who are still owned by Allen and not directly involved in the bankruptcy) remain the arena's primary tenant. The other main tenant is the Portland Winterhawks of the Western Hockey League, a junior hockey team. The arena remains a popular venue for concerts and other large promotions.

Address

Rose Garden
One Center Court Suite 150
Portland, OR 97227

Phone: 503-234-9291
Fax: 503-736-2138

External link

• Rose Quarter website (http://www.rosegarden.com/)