Portland Trail Blazers officials met with Portland city councilors to discuss the possibility of committing public funds to renovate the Moda Center on Thursday.

There remains a "significant" distance between the two sides on whether the city will fund $573 million to update the area in exchange for a 20-year lease that keeps the Blazers in Portland.

"Today was a show from the Blazers that they are serious about coming to the table,'' Portland city council president Jamie Dunphy said. "I don't know if that guarantees anything ... in fact, I think the distance between the Blazers and the city is pretty significant.''

The city council will vote on a term sheet for an arena lease on August 12, with the current lease expiring in 2030. The state of Oregon has already committed $365 million contingent on the city approving $120 million of funding, with Multnomah County contributing $88 million.

If an agreement is not reached, the Blazers could start looking for another city for relocation.

New Blazers owner Tom Dundon has previously stated that he would sign a 20-year lease should the city and state agree to fund the renovation.

Blazers president Dewayne Hankins said that the Blazers new owners "believe that Portland is the best and most obvious choice for this team," though he added that "Portland's current stagnant business climate, high income taxes and divisive political environment makes this a tough city to invest in."

The two sides are also hung up on the provision that the Blazers are required to maintain the Moda Center as a "first-class" NBA arena.

"Although we enter negotiations in good faith, the first-class standard has been wielded as a weapon, chilling our negotiations," added Hankins.

There will be a public hearing at City Hall on August 5.