Here's my stance on this whole thing:
It's one thing to play games in a self sustaining arena that is in Hartford (especially during recess from the academic calendar) that doesn't rely on UConn Athletics as it's main source of existence. Utilizing this arena for events like the AAC tournament, maybe create a New England style early season tournament that rotates sites (UConn/Providence/BC/BU/URI/Yale can all alternate hosts), and a few games away from campus for bigger opponents per year is really actually a good idea for exposure and ease of travel for the rest of the state.
I do not believe however in any way shape or form that the University of Connecticut should let the city of Hartford bend it over and have it's way with us during any contract negotiations, especially when UConn is not responsible for the city of Hartford's economic/safety issues. UConn should not be helping to finance a new arena 25 miles from its own campus, the University has enough problems to deal with (recent budget cuts, less attractive home schedule, etc). If Hartford can find a way to make their downtown arena a viable spot to continue to host UConn games without a massive financial sum from the University, then yes, continue to play some games there. If not then bring the games back to Gampel where they belong in the first place and end this whole charade.
Which brings me to my last point. A 5 year lease is not only incredibly stupid from the University's part, it is completely ridiculous to ask from the city of Hartford's spot. If UConn signs the lease for 5 years it is essentially agreeing to take on the new arena project with Hartford and will outsource even more basketball games than it currently does with the 50/50 split (since the hockey games will be returning to a shiny new arena in Storrs). A year by year lease is the smart approach for UConn, even if the city of Hartford doesn't want to have to deal with being evaluated as a potential host for UConn athletics year after year. The goal of the University isn't to please the casual fan who doesn't want to drive the extra 30 minutes, it is to provide for the current student-athletes and the students who foot the bill for the sports programs, most of which do not bring in enough income to be self sustaining.