A disagreement over the Cincinnati Reds' lease at Cinergy Field is at the heart of Monday's escalating negotiations between Hamilton County and the team.
The club argues the city of Cincinnati broke its lease in 1994 when it agreed to make annual payments to the Cincinnati Bengals.
When Hamilton County took over stadium operations, it inherited the disagreement between the city and club. But just as Cincinnati officials did, county officials argue that the Reds' lease still is valid and binds the team to play at Cinergy Field until 2010.
The annual payments to the Bengals were the result of a lawsuit the Bengals and city settled in 1994.
The Bengals sued the city years earlier, claiming the city had favored the Reds. The Bengals argued that unfair treatment violated its lease, which promised equal treatment of the two teams.
The 1994 agreement required the city to pay the Bengals guaranteed sums annually. The payment was $2.75 million in 1994 and increases yearly.
The agreement also required the city to build additional luxury suites and club seats. But the Reds wouldn't agree to that; both teams must sign off on such changes to the stadium.
When the city started making payments to the Bengals, the Reds demanded payments, citing the "equal treatment" lease clause. The city argued the payments were a lawsuit settlement and had no bearing on any lease.
"Millions of dollars have been paid out by the taxpayers from the city and Hamilton County to our co-tenant in accordance with that agreement," Reds Managing Executive John Allen said Monday. "In our lease, the co-tenant must be treated equally."
County officials argue that even if the Reds are right, the remedy would be compensation, not moving out, County Administrator David Krings said.
"The remedy is not to leave town," he said.
Geoff Hobson contributed to this report.
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