Portland City Council has given the green light to a plan for the earthquake-vulnerable Keller Auditorium that would ultimately lead to two downtown venues that could host Broadway shows and other large-scale theater productions.

Commissioners began hearing proposals for what to do with the aging Keller Auditorium earlier this year. Two plans rose to the surface as the council’s favorites: The first would build a new performing arts center on Portland State University’s downtown campus, and the other put forward by Halprin Land Conservancy would renovate the historic Keller.

On Thursday, commissioners unanimously decided to move forward with a plan that incorporates both proposals.

“After nearly 20 hours of in-person meetings, our combined project team landed on one collaborative proposal for the council to consider,” Chariti Montez, director of Portland’s Arts and Culture office, told commissioners. “Namely, moving forward with two Broadway-capable venues, including a new build at the PSU site and a renovation at the existing Keller site.”

Thriving performing arts venues are considered a crucial part of an economically healthy downtown, which in turn can act as an indicator of the overall financial health of a city. Portland’s downtown took a big hit when the pandemic closed down performance spaces and it’s still recovering. Meanwhile, there’s been an increase in people experiencing homelessness, mental illness or drug addiction in the downtown corridor.

Early metrics from the city show foot traffic is picking up again, and city commissioners hope investments in the performing arts could accelerate that trend.

The Keller Auditorium, at Southwest Second Avenue and Clay Street, is currently the only Portland venue able to host traveling Broadway shows – a major source of income for the city’s performing arts ecosystem. It also stages shows for the Oregon Ballet Theatre, Portland Opera and others.

A seismic report from the city shows the building is unlikely to survive a major earthquake. However, closing the Keller for construction could cost hundreds of jobs and millions of dollars.

“The first thing to note is that programming at the Keller continues for years as we work through planning and development for both sites,” Montez said. “And as we work through construction of the new Broadway-capable venue at the PSU site, the Keller Auditorium would not close for renovations until after the new PSU site opens and starts hosting Broadway and other large format performances.”

Authors of the two proposals have been meeting since August to hash out the details of coordinating the plans. The Halprin Conservancy inked the renovation of the existing plan, and leaders from PSU, with the help of a design firm, worked on its original proposal.

The combined effort did not include final cost, funding and timeline estimates. But as the two sides worked together, they sketched out options for a building and construction timeline, as well as cost estimates and possible funding sources.

In the conceptual financing summary submitted to commissioners, the cost of building a new venue and renovating the existing Keller could cost close to $600 million. Possible funding sources include $100 million in philanthropic giving, nearly $375 million in local funding, and over $100 million in state funding.

A possible timeline is around five years of planning and construction for the PSU site. When it’s set to open in 2029, the Keller would shut for renovations and re-open in 2031.

The approved proposal directs the city to perform more studies to hammer out the details. The first is a market feasibility study that would help determine if the city can support two theaters, and how many seats each should have. City staff told commissioners research shows the answer to the first question is likely yes, and the study would mostly be to determine seating arrangements.

Donnie Oliveira, Deputy City Administrator for Community and Economic Development, told commissioners the proposal is exceptional, and lays out a lot more work ahead.

“This is a really important moment in this process,” Oliveira said. “But there’s still a long way to go.”