Nike has signed on to sponsor Portland's forthcoming bike-rental program, which it's calling Biketown.

The company will pay $10 million over five years in exchange for the right to put its Swoosh logo and signature orange color on the bicycles that will crisscross the central city when bike-share launches in July, as well as kiosks, racks and promotional materials.

Nike will also periodically create limited-edition wraps, changing up the look of the bikes. (Sound familiar?)

The agreement expands on the program approved last year, from 600 to 1,000 bicycles. The coverage area -- previously from Goose Hollow to inner North Portland, east to the Lloyd District and south to South Waterfront -- will also expand, though new boundaries haven't been determined.

It's an unusual move for the sports apparel giant, which is more inclined to sponsor professional athletes and teams that will wear its products than to seek naming rights for municipal facilities or programs, even in its hometown.

?xml version="1.0" encoding="UTF-8" standalone="no"? "Part of our commitment to Portland has been to encourage people to move more by incorporating physical activity into their everyday lives," said Jorge Casimiro, Nike's vice president of global community impact. "So to all of us at Nike, the city's bike-share program is the perfect way of doing so."

The company's logo can be spotted in local parks and schools where it's sponsored renovations and new equipment. Nike recently grumbled when the city announced a partnership with competitor Under Armour to sponsor new renovations at a park once overhauled by Nike, where Under Armour is opening a major office.

But they appear to have overcome any ill will from that turf war.

?xml version="1.0" encoding="UTF-8" standalone="no"? "It makes perfect sense that he city would have this partnership with Nike," said Commissioner Steve Novick, who oversees the city's transportation bureau. "Nike has a long history of supporting sports and physical activity in Portland, and in working with the city."

The sponsorship goes a long way toward ensuring the program's viability. More than one-third of its operating costs are expected to be covered by contributions from its naming sponsor and other smaller sponsors.

Under the terms of a $2 million federal grant that's paying the start-up costs of the program, the city is on the hook to operate a bike-share program for five years, regardless of whether it's profitable.

But officials said they would scale back the program significantly if it doesn't prove self-sustaining to avoid committing more public funds. The program in its earlier, smaller configuration was expected to cost $1.4 million per year to run.

The city had spent three years soliciting potential sponsors before deciding in September to launch without one. Officials hoped the momentum would help bring a business partner on board.

The bike-share program approved by the Portland City Council in September calls for a fleet supplied by Social Bicycles, Inc., or SoBi, of New York. The program will be operated by Motivate Co., also of New York.

Renting a bike for 30 minutes will cost about $2.50, which the city said would be the lowest fee in the country. Users can also buy a $10 to $15 a month membership, good for up to 90 minutes of bike time a day.

-- Elliot Njus

enjus@oregonian.com

503-294-5034

@enjus