A letter of intent between the Port of Portland and a group seeking to build a Major League Baseball-caliber stadium calls for the private group to pay up to $1.5 million over two years to exclusively negotiate redevelopment of a waterfront site. The group would then pay the Port at least $900,000 a year as they build out the property, according to terms spelled out in the letter.

The Port signed off on the letter Nov. 28. The Portland Diamond Project, which is seeking to lure an MLB team to Portland, agreed the next day. The group released artist renderings of a new baseball stadium at the Port’s 45-acre Terminal 2 marine cargo site the same day.

The terms of the agreement hadn’t been publicly released since the proposed site announcement. A copy of the letter of intent and its attachments were obtained by The Oregonian/OregonLive through a public records request.

[Read the documents]

Both sides have carried out due diligence since then. They have up to six months to inspect the property and complete any other feasibility analysis they feel is necessary, the letter said.

During this period, the Diamond Project is required to inform the Port of plans related to the proposed venture, including the group’s ownership structure and other financial information that explains how it will be able to execute the deal. They’ll move to exclusive negotiations afterward, during which the project plans to pay $375,000 during the first quarter, $125,000 for the next three quarters after that and $187,500 each quarter over the next year, if necessary.

They would then enter a master development agreement, which the Port can terminate if the Diamond Project doesn’t sign a ground lease for the site by Dec. 31, 2023. Either party can also still opt out of the deal with advanced notice, the letter said.

The group would pay the Port at least $900,000 a year as the site is developed, according to the letter of intent. The fee could be raised or decreased by 3 percent a year.

The property lease will have an initial term of 55 years, with three options to extend for ten years each, the letter said. The letter doesn’t disclose how much the group would pay to rent the land, but said the annual rent payments will be based on market rates. The security deposit would be equal to one year’s worth of property taxes.

The Portland Diamond Project will be responsible for all improvements, required permits, development and other fees and charges related to development and use of the site. The Port of Portland’s nine member commission has to approve an agreement before the Diamond Project would be given control of parts of the site.

The Portland Diamond Project, whose investors include married couple Grammy Award-winning singer Ciara and NFL quarterback Russell Wilson, said it’s looking to build a 32,000-seat stadium.

The Diamond Project will act as the master developer for the Terminal 2 site, allowing other developers to build supplementary housing and commercial developments on the land.

It’s still not clear how the project plans to fund the costs of building a ballpark and bringing a team to Portland. There aren’t any current tangible plans for an existing MLB franchise to move to Portland or for the league to approve starting a new team in the city.

The group has said it plans to tap up to $150 million in state-issued bonds that would be paid back with income taxes from team salaries. The ballpark would likely need millions more to be completed.

Elliot Njus of The Oregonian/OregonLive staff contributed to this report.

— Everton Bailey Jr.