Portland's MLS bid decision expected Friday

PORTLAND, Ore. -- Major League Soccer executives and city officials have scheduled a news conference for Friday about Portland's bid for an MLS expansion team.

Portland is seeking one of two franchises to begin play in 2011. MLS officials and Merritt Paulson, who has led efforts to bring the team to Portland, did not immediately return phone calls Thursday.

The MLS already has awarded one franchise to Vancouver, British Columbia, which also will begin play in 2011.

Portland city officials last week approved a financing deal that would renovate PGE Park for soccer and build a new ballpark for the Triple-A Portland Beavers baseball team. But the city still must come up with a plan to raise $15 million of about $89 million needed for the project.

The City Council approved putting $60 million toward the project, but removed plans to raise a quarter of that with tax revenue from a new urban renewal district.

Paulson, son of former Treasury Secretary Henry Paulson, will pay $40 million for the franchise and contribute $12.5 million toward construction. He pledged to raise an addition $11.8 million from other sources.

The city's commitment was needed for the MLS to consider Portland, which was one of four teams bidding on a team along with Vancouver, St. Louis and Ottawa.

But Portland's bid was not without controversy. Some questioned whether the city should help finance the deal given the state of the economy.

Under the proposal, bonds would be issued to cover the city's contribution Paulson would pay rent for PGE Park into a fund that would be used to repay the city.

City officials vowed that no general funds would be used.