Ballet West and Salt Lake County have tentatively agreed to an $80,000 settlement of the ballet company's long-disputed bill for overdue rent at the Capitol Theater, repayment of county subsidies and interest.

The unpaid rent spans the period of 1984-86, and with interest and other charges the county had calculated the disputed amount as high as $125,000.Under terms agreed to earlier this month, Ballet West will make an initial payment of $20,000 within 10 days after the county commission ratifies the agreement. Installments of $5,000 are to be paid on the first of each month until the balance is paid.

The ballet company will pay no interest unless its payments fall behind schedule again. If that happens, Ballet West must resume paying 18 percent annual interest on the entire balance until it is paid.

The company did not dispute $44,000 of the overdue rent bill. But it had questioned another $25,000 in past-due rent charges, the high annual interest rate on the unpaid balance and a separate $19,000 billing for repayment of county subsidies to the arts.

The settlement will hopefully conclude the long-running dispute, said Ken Knight, chairman of the county's Fine Arts Advisory Board and member of a negotiating team that hammered out the agreement.

"This could have gone on for a long, long time," he said.