PSU-Led Performing Arts and Culture Center Builds Momentum With $155 Million in State, City and Private Funding

Portland State University’s Performing Arts and Culture Center (PACC) project is marking a major step forward with $155 million in secured funding that will propel the next phase of development at the south end of downtown Portland.

The Oregon Legislature on Friday evening approved $137.5 million in state bonds for the PSU-owned community theater and academic space, as well as integrated parking. This is paired with $7.6 million from Prosper Portland and $10.5 million in philanthropic pledges. This progress reflects strong momentum and support for the PACC and signals the beginning of the next stage of planning for the city’s vision of two world-class performance venues in the heart of downtown Portland.

Included in Senate Bill 5505, the state investment includes $85 million in Article XI-G bonds for the construction of the 1,200-seat theater and academic space and $52.5 million in Article XI-F(1) bonds to develop on-site parking infrastructure. These PSU-owned spaces will combine with the city-owned Broadway-capable venue to create a multi-use arts and culture complex envisioned to serve Portland for a century.

“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,” said Portland State University President Ann Cudd. “As Oregon’s public urban research university, we’re proud to help lead a development that strengthens the cultural and economic heart of Portland. This moment is about more than a building. It’s about shaping a future filled with opportunity for our students, artists and community.”

This development is the first phase of Portland’s two-theater strategy, authorized by the Portland City Council in October 2024 through Resolution 37680. The plan calls for developing 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 Performing Arts and Culture Center will sit on a 4.25-acre PSU parcel at the current University Place Hotel property, with direct connections to the MAX and Portland streetcar lines. Prosper Portland’s $7.6 million commitment, drawn from the North Macadam Tax Increment Financing (TIF), will support critical site preparation work.

“This is a major win for Portland and for Oregon,” said Representative Dacia Grayber, whose district includes Portland State and who has been a vocal champion for the project from the very beginning. “Investments in arts and culture are investments in economic resilience, in education and the vitality of our downtown. We are choosing with these bonds to boldly sing the song of our city and who we can be for generations to come. I’m proud to represent a district that is home to a project so deeply connected to our region's future.”

With momentum building, PSU has already secured $10.5 million in philanthropic pledges toward the project and is in active discussions with major donors and potential development partners for additional elements of the site, including a hotel and conference center.

The PACC is part of a coordinated effort by city and regional leaders to catalyze downtown revitalization and expand opportunities for performing arts, learning and cultural celebration. It will welcome students, artists, educators and audiences from across Oregon and will serve as an anchor in Portland across generations.

Portland State looks forward to continuing its partnership with the city of Portland as the next phase of the project begins, with plans to welcome audiences to the PACC in 2030.