Portland State University Secures $155 Million for New Cultural Center

Portland State University (PSU) has secured $155 million in funding for its Performing Arts and Culture Center (PACC), marking a significant advancement in the university's efforts to enhance Portland's cultural landscape. The funding package includes $137.5 million in state bonds approved by the Oregon Legislature, $7.6 million from Prosper Portland, and $10.5 million in philanthropic pledges.

The PACC is envisioned as a state-of-the-art facility featuring a 1,200-seat theater, academic spaces, and integrated parking facilities. It will be situated on a 4.25-acre PSU-owned parcel at the current site of the University Place Hotel in downtown Portland. This development is part of a broader city strategy to establish two world-class performance venues, aiming to revitalize the downtown area and enhance the cultural landscape. The project is expected to welcome audiences by 2030.

The Oregon Legislature's approval of $137.5 million in state bonds is a cornerstone of the project's funding. This allocation includes $85 million in Article XI-G bonds designated for the construction of the theater and academic spaces, and $52.5 million in Article XI-F(1) bonds for developing on-site parking infrastructure. Prosper Portland's contribution of $7.6 million, drawn from the North Macadam Tax Increment Financing (TIF), will support critical site preparation work. Additionally, PSU has secured $10.5 million in philanthropic pledges and is actively engaging with major donors and potential development partners for additional site elements, including a hotel and conference center.

PSU President Ann Cudd expressed gratitude for the support, stating, "Portland State University is grateful for the support of Governor Kotek and the Oregon Legislature. We believe this project reflects the bold leadership and creative vision needed to reinvigorate our city." Mayor Keith Wilson highlighted the project's significance, saying, "The State’s investment in Portland State University represents a profound commitment to the importance of the arts in bringing together community and activating Portland’s downtown core."

In October 2024, the Portland City Council authorized the development of two Broadway-capable theaters in sequence, beginning with the site on PSU’s campus at Southwest Lincoln Street. This sequencing allows the city to maintain continuous performing arts programming without long-term closures. The next steps for the PACC project include a market feasibility analysis to assess optimal seating capacity, financial feasibility, and construction timelines. A project steering committee will be established to oversee financial planning, construction management, and overall coordination. Additionally, a traffic study is planned to evaluate the impact of potential street closures and development of surrounding areas.

The PACC is expected to serve as a catalyst for downtown revitalization, providing a premier venue for performing arts, learning, and cultural celebration. It aims to attract visitors, stimulate local businesses, create jobs, and generate new tax revenues. The development aligns with Portland's vision of creating a vibrant arts and culture corridor, enhancing the city's cultural landscape and economic resilience.

The establishment of the Performing Arts and Culture Center at Portland State University represents a significant investment in the city's cultural and economic future. By combining state funding, city support, and private philanthropy, the project exemplifies a collaborative effort to enrich Portland's arts scene and stimulate downtown revitalization. As the project progresses toward its anticipated 2030 opening, it stands as a testament to the city's commitment to fostering a vibrant and inclusive cultural community.