As Portland and other officials continue discussing the future of the Keller Auditorium behind closed doors, Portland State University says a recently released analysis shows that a new performing arts center built on its campus will generate greater economic impact benefits for the city.
The proposed city-owned center at PSU is projected to generate approximately $98.2 million in total annual economic impact, compared to $84.9 million for a renovated Keller Auditorium, according to a new Economic Impact Analysis by the Chicago-based Hunden Partners consulting firm.
Keller supporters say the study is flawed because the city could permanently close the existing downtown performing arts center after the new one opens, eliminating $50 million a year in future potential benefits.
“This economic analysis is completely wrong,” said Elise Haas, a spokesperson for the Save the Keller advocacy group.
The 3,000-seat Keller is at 222 S.W. Clay St. The City Council needs to decide whether to close it for remodeling after a 2020 report found it does not meet current seismic standards and could collapse in an earthquake.
PSU has proposed that the city build a new, city-owned, 3,200-seat center at its proposed Performing Arts + Culture Center at 310 S.W. Market St. That would give the popular touring Broadway shows a venue to play while the Keller is then closed for remodeling.
But a previous city-commissioned Market Feasibility Study conducted by Hunden Partners consulting firm found the Portland region cannot support two Broadway-capable performing arts centers. It recommended building the new one at PSU and not remodeling the Keller as a performing arts center. The study did not recommend an alternative use for the Keller.
Renovating the Keller is estimated to cost roughly $290 million, while constructing a new one at PSU could cost up to $447 million.
Portland has appointed a number of advisory committees to study the choices more closely before holding public hearings to make a final decision. Now the 16-member Ex-Officio Table appointed by Mayor Keith Wilson has received an Economic Impact Study by Hunden Partners comparing a renovated Keller with the proposed new PSU center. Members include Portland, Multnomah County, Metro, and PSU officials, along with supporters.
The new analysis found the PSU center would generate 16% more spending, earnings and jobs than a renovated Keller, along with 8% higher attendance and 12% greater operating revenue. That includes supporting 378 jobs, generating $17.9 million in annual earnings, and contributing approximately $1.8 million in transient lodging taxes each year, the analysis said.
“The latest report reinforces that this project is the right long-term investment for Portland’s arts ecosystem,” Portland State University Foundation President Sarah Schwarz said in an April 29 press release announcing the analysis. “It brings together the touring Broadway shows of tomorrow, local performances and arts organizations, and student learning in a way that keeps downtown active and connected to the arts. We want to thank the city for a productive process, and we look forward to continued conversations about how to make this a reality.”
Keller supporters attacked the study for ignoring the economic consequences of building the PSU center with no viable plan for the existing center’s continued use.
“Abandoning the Keller will inflict at least $50 million per year of permanent economic damage on the existing downtown businesses, plus it will cost taxpayers more than twice as much to build a new venue near PSU as it will to renovate the Keller. Building a new venue costs significantly more and creates more economic damage than renovating the Keller,” said Haas.
The proposed Performing Arts + Culture Center would also include an additional 1,200-seat theater, academic buildings, a new hotel, a conference center, restaurants, and other performance, rehearsal and educational spaces. Hunden Partners said its new analysis only compared a renovated Keller to a new city-owned center at PSU, however.
Although the City Council has not announced a schedule for making its decision, PSU is planning for the center on its campus to open in 2030.
Not counting the cost of renovating the Keller, a March 2 report by Metro said the city-owned Portland’5 Centers for the Performing Arts needs $336 million in short- and long-term maintenance costs. The regional government will transfer management of the three buildings to the City on July 1, 2027.
The buildings include the Keller; the Arlene Schnitzer Concert Hall at 1037 S.W. Broadway; and just across from the Schnitzer on Southwest Main Street, the Antoinette Hatfield Hall, which houses the Brunish, Newmark, and Winningstad theaters.
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- The new Hunden Partners Economic Impact Analysis can be found here.
- More information about the Performing Arts + Culture Center can be found at paccpdx.org.
- More information on renovating the Keller Auditorium can be found at savethekeller.com.
- More information on Portland’s Future of Large-Scale Performing Arts project can be found here.
- A previous Oregon ArtsWatch story on the controversy can be found here.
- A previous Oregon ArtsWatch story on the maintenance needs of the Portland’5 Centers for the Arts can be found here.
