I can probably find you a number of places where you could lease them for $1 if you pay all the maintenance and upkeep costs. I doubt if you'd like it very much.
However, if you were already in a position where you were doing that and you could renegotiate your lease, which would you do - ask for what you want (relief on the maintenance and upkeep without a rent increase) or ask for what your landlord wants?
It all comes down to whether they really think they can get a better deal somewhere else.
I am also waiting for someone other than Kravitz to say that the Pacers have rejected the supposed counter-offer from the city, especially since Kravitz didn't even put it in those terms (he stated what the two sides "want", not what they've even counter-offered or rejected/accepted). Until then, the idea that the Pacers made an inflexible demand is not supported.