With a June 30 deadline looming for the Cincinnati Bengals to exercise its first two-year stadium lease extension option, the team and Hamilton County have reached an agreement on terms for an 11-year lease term sheet.
"It's not perfect," said Jeff Aluotto, county administrator. "It's a better deal, a smarter deal, than what was done under the previous lease."
"The Board's goals were clear: to keep the team in Hamilton County; to invest in the stadium to sure ensure it remains a viable asset for the entire community; to improve the utilization of the stadium; to work with the team to craft a smarter lease that still works for both parties; and to do so in a financially prudent manner," said Aluotto.
The base lease is 11 years because it includes the 2025 NFL season, and will extend then for 10 years.
What are the terms?
Under the terms, the county will contribute $350 million toward renovations, and that amount will be capped. The Bengals will contribute $120 million, for a total project investment of $470 million. That includes no state funding, though the sides agree to jointly seek state funding.
"This is a 75/25 split, which is a change from the nearly 90% contribution that the county had during the last lease," said Marty Dunn with the Dinsmore law firm.
The construction timeline would be two to three years. The team will manage the renovation with input from the county.
Like the existing lease, this deal includes the option for five, two-year extension options.
"[The county] gets annualized rent of $1 million in years one through three; that escalates to $2 million at year four going forward — again, indexed for the consumer price index, or 2.5% — and the rent will continue through the extension years as well," said Dunn.
The terms call for establishing an urban design study group to consider new agreements about The Banks development on issues such as height restrictions, which the Bengals currently control.
It also gives the county more control over programming public events and activities at the stadium.
Board reaction
Commission President Denise Driehaus praised the agreement for capping the county's commitment at $350 million, and noted it makes other gains for the county.
"We've got 19 amendments to the original lease," she said. "The agreement is not perfect, but it is a far cry better than what we have had to endure for the past 28 years. We can finally answer the question, did we get a better deal for the taxpayers while keeping the team here, and the answer is yes, we did."
Driehaus noted the team could have extended the current lease for 10 more years, so this deal covers roughly the same amount of time and is better for taxpayers.
Commission Vice President Stephanie Summerow Dumas also highlighted some of the "wins" for the county.
"One thing I advocated for was that the county received reasonable rent from the team — I've done that. One thing that I advocated for was an agreement that the term of the lease would be reasonable as we provide capital investments."
She also applauded the fact that the stadium will be more available for public use like concerts and events.
Commissioner Alicia Reece refused to vote for the deal because she said it is not legally binding and provides nothing tangible for the taxpayer. She said she wants to read all the fine print.
"I'm going to keep pushing until we get the actual lease where I could read every single clause. Because one thing I learned in reading this lease is that one group, the Bengals lawyers, in 1997 they paid attention to all clauses and stuff that we said, 'Oh, it's just little, don't worry about it.' Those things came to bite us," she said.
Reece chose to abstain rather than voting against the resolution.
"I think that this is a unfulfilled promise right now. I think that there's some additional work to be done, and I am going to continue to be optimistic and hopeful that we can make sure that there is some guarantee for the taxpayers of Hamilton County, who are the ones that are 100% on the hook to paying for this," she concluded.
What the Bengals have to say
"This is a significant day for the Bengals and Hamilton County as we secure the team’s future in Cincinnati," said Bengals Executive Vice President Katie Blackburn in a statement. "We thank the Hamilton County Commissioners for supporting this agreement to ensure Paycor Stadium remains an excellent venue and a focal point for Cincinnati’s riverfront. We are proud to call Paycor Stadium our home and to keep our future here in Cincinnati, where it belongs."
Read more:
