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Cllr Jim Knipe believes Herefordshire Council have 'their nickers in a twist' over the leases and Hereford United.
In an interview with BBC Hereford and Worcester Cllr Knipe suggested that the Council may not have followed the correct procedures as regards the renewal of the leases.
"The reason I started to get involved was in April 2013 I warned the Leader of the Council , Tony Johnson, that we needed to carry out a due diligence report on Hereford United to establish the financial position of the club before we revised the leases.
"I pointed out to him it was a sensitive issue because what we had at that stage was a board member (Nick Nenadich) of Hereford United as a councillor.
"It is a basic requirement that you need to establish the financial position of any business you deal with because it is goes into administration you have all sorts of problems, the assets end up as they have with people you didn't originally think you were dealing with.
"It's nothing very complicated but it's absolutely essential.
"I think the procedure we went through, we've got ourselves in a position we should never be in at this moment.
"We should have looked at the financial position of Hereford United going back before we started to deal with them.
"Even a small business man doesn't deal with a company that can't pay him. It's fairly basic stuff.
"If we could terminate the leases with no payment because I suspect there's some contractual arrangement with the new owners which would mean a payment will be due. If no payment is due we can terminate the leases and start again I think that's probably the best solution.
"The Council have got themselves in this position because they didn't do proper procedure when they revised the leases.
"I suspect it will be very difficult to terminate these leases."
