CINCINNATI — With four days to go until their Monday deadline for a new agreement, Hamilton County and the Cincinnati Bengals have agreed on the framework of a deal for a new lease.
A new lease agreed upon by both the county and the team will last for 11 years, through 2036, according to a term sheet introduced at the Hamilton County commissioners meeting Thursday.
The two parties will then have the option to extend that lease for up to five 2-year terms — a maximum of 21 years in all.
The Bengals have agreed to pay 25% of needed stadium renovations, while the county will be left to cover 75% of the costs. The county said this is down from an 88%-12% split on maintenance costs in the previous lease. The county also said this is less public contribution when compared to Baltimore and Charlotte's recent deals.
In all, Hamilton County would pay a capped amount of $350 million, while the Bengals would pay $120 million, if no state funding is available. The renovations covered under this agreement are estimated to be completed in two to three years. The county did not provide specifics about what exactly those renovations would be.
The team and the county agreed to jointly pursue state funding to meet more of the needs of the overall costs of renovations at the stadium, which have previously been clocked at $830 million.
On Wednesday, Ohio state lawmakers finalized the details of a new funding plan for stadiums. If that plan is signed into law and survives a threatened lawsuit over its constitutionality, the Cleveland Browns will get $600 million, and the Bengals can compete with other teams for an additional $400 million in state funds.
“The state dollars are a little bit in flux. We knew that,” Commissioner Denise Driehaus said before the Thursday meeting. “So, what we’re working on now is something that’s less than ($830 million), because the state dollars aren’t in the stack right now. But we have the ability to expand and include projects were we to get the state dollars.”
Under the new agreement, the team will remain responsible for "game-day costs" and the parking revenue split remains 93% to the team, 7% to the county.
The county also has permission to engage a third-party to market non-game day use of the stadium.
Commissioner Driehaus said Thursday that this agreement also lessens the control the team has over development at The Banks, which paves the way for more options in the four undeveloped lots of the neighborhood.
The team and the county agreed to review the stadium after year seven, or earlier if agreed upon. The county will contribute $3 million in capital costs in the first three years, then $6 million annually after that.
The Bengals will pay $1 million in rent annually for the first three years, and $2 million annually after that.
"I didn't think we'd be here today," Commissioner Stephanie Summerow Dumas said during Thursday's commissioner meeting, citing how far apart the county and the team were even recently.
Dumas also emphasized that this deal was reached without any new taxes on the residents of Hamilton County.
The county did say the lease provisions "still require finalization," and the June 30 deadline was extended to allow time for "definitive documents."
Commissioner Alicia Reece emphasized that what they presented on Thursday is not an enforceable lease yet, but rather a "concept" that they need to work out.
Reece said that the key details are still unclear, referencing a promise in 1997 that was made about the concept of 30% property tax relief that was never made binding in the finalized lease.
Reece abstained from voting, and the resolution to negotiate the lease agreement as outlined passed in a 2-0 vote.
The law firm representing the county in the negotiations with the Bengals, Dinsmore and Shohl, said at the commissioners meeting Thursday that the team was "anxiously watching" the proceedings and was ready to sign this agreement once the county passed it.
