Cincinnati City Council has put off its day of reckoning on the Convergys deal, most likely until next week, in hopes of reworking some contentious terms. It's encouraging that all sides, including Convergys, say they remain committed to keeping the headquarters downtown.

As troubling a precedent as it was for the city to offer earnings tax credits for Convergys' current Cincinnati jobs, council will need to make sure it doesn't outsmart itself by pushing a substitute with equal or greater risks.

The job retention tax credits were the chief sticking point for most council opponents of the deal negotiated by the administration. Estimated city revenue loss: $1.7 million to $2.8 million a year. They accounted for about half of the city's $63.4 million offer to keep Convergys from accepting Kentucky's bid for the company to move its headquarters and 1,450 high-salaried workers to a Boone County site. But the advantage of tax credits was it spread refund payments over 15 years, and Convergys could only reap the incentive benefits by keeping jobs or creating new ones in Cincinnati. If Convergys didn't deliver the jobs, it wouldn't get the benefits.

Now council's substitute proposals may require more upfront cash, with fewer guarantees Cincinnati could recoup its funds if Convergys were to be bought out or go out of business. Such "clawbacks" could be tough to enforce 10 to 15 years from now. Proposals to bond the money for Convergys upfront might also have to be paid out of the city's General Fund, as would tax credits. Council should not be too hasty to reject an incentive-based deal.

Tax credits for existing jobs do raise concerns about other companies demanding similar deals, but the city used job retention tax credits in the Delta Air Lines deal. Ohio's matching $144 million package of tax credits requires Convergys to stay here for at least 30 years. "The real drivers of this deal," said Mayor Charlie Luken, "were the job creation and retention credits from the state, which are twice those from the city."

Convergys officials told the city they are accepting about $10 million less by refusing Kentucky's offer. All parties here need to find a fair deal to keep Convergys a major player downtown.