Hamilton County commissioners Thursday voted 2-1 in favor of signing a new 11-year lease with the Cincinnati Bengals for Paycor Stadium.
It's unclear if the team will agree.
"The version of the lease approved by the Hamilton County Commissioners was not shared with the Bengals prior to the vote. The team will have no further comment until we are able to review the document," the team told WVXU in a statement.
The board has scheduled a special meeting for 4 p.m. Friday to discuss the agreement again.
The terms
The Bengals and Hamilton County agreed on a letter of intent (LOI) in late June, outlining the basic terms of a proposed 11-year lease, but hadn't signed a formal lease.
Under the deal approved Thursday, the county will contribute $350 million toward renovations to Paycor Stadium under the agreed-upon terms. The Bengals will contribute $120 million, for a total investment of $470 million. That includes no state funding, though the sides agreed to jointly seek state funding.
The Bengals would pay the county $1 million in rent each year for the first three years of the lease, starting in the 2025 NFL season. At year four, the rent would double to $2 million each year.
Hamilton County says the new lease also will give the county more control over public events and activities hosted at the stadium.
How commissioners voted
"It was clear to me that there were some high-level priorities that this community wanted to hit," said Commission President Denise Driehaus. "Those priorities were, in no particular order: no new taxes, a better lease, and (to) keep the Bengals in town. That's what I heard over and over again."
She said this deal, while not perfect, does all three of those things.
"We didn't get everything we wanted; the Bengals didn't get everything they wanted. This was a negotiation," Driehaus said.
"They came in with a much higher number for us to contribute, by way the capital stack, and we had to come down on a number. We simply couldn't afford anything more than what is in front of us, and it would have been irresponsible to go to a higher number, and so we didn't do that," she added. "And our liability is capped, which is really critically important — it is not capped under the current lease, and it is capped in the new lease."
Driehaus also suggested the county may be able to apply for some of the funds the state recently said it would make available to such projects from its unclaimed funds account.
Finally, Driehaus said the deal does include continuing to offer the property tax rebate — commonly referred to as the PTR — promised to voters when they approved the stadium sales tax in 1996. However, she acknowledged it likely won't be fully funded at the 30% that was promised.
The half-cent stadium sales tax has failed to generate the revenues it was expected to bring in when it was implemented, making it difficult for the county to find the dollars needed to cover the cost of the rebate.
"We simply can't afford to pay the 30%; we can't now, we can't in the future, unless our revenues go up. But the opportunity to bring that forward every year continues to exist, and so if the finances allow for it, we can think about a high PTR. If they don't, we have the flexibility to say we can't do it this year so we do a lower PTR," she said. "If we bankrupt this fund, then the general fund kicks in, and we're paying for all of this through the general fund, and our general fund is strained, and the general fund is what we use to do basic services for the residents of this county. And I am not willing to jeopardize the general fund."
Driehaus was joined in approving the deal by Commission Vice President Stephanie Summerow Dumas, who kept her remarks concise.
"I didn't get everything I wanted," said Summerow Dumas before listing what she felt were victories for the county, including making the stadium more available to the public, revenue-sharing between the team and county, and capping the county's contribution at $350 million.
"It's clear to me that this is the best deal for a time such as this."
Commissioner Alicia Reece remained unsatisfied with the proposed lease terms and voted against the deal.
"In this deal, the taxpayers aren't in it," Reece said, lamenting that the county won't be able to afford the deal and still fund the property tax rebate at the full 30%.
Reece said the lease document includes a clause that would allow the Bengals ownership to move the team without violating Ohio's so-called Modell Law. That law prevents professional sports teams from leaving taxpayer-funded stadiums without either negotiating an exit with the city or giving local investors the chance to buy the team.
WVXU has not reviewed the document.
She also lamented that only the Board of Commissioners would vote on the deal, and entered a motion to put the lease in front of Hamilton County voters. The motion failed for a lack of a second from her fellow commissioners.
In the absence of a new lease deal, the Bengals could exercise an extension of the existing lease.
Read more:
