Well they were in dispute with them about outstanding debts. From the club's official site in 2004 responding to rumours of administration -
"The situation remains exactly the same as it did when the Club approached the Council some two years ago.
The debt on the Trent End is guaranteed by Nottingham City Council and ranks behind other lenders to the Club. The Club continues to trade well and make good progress with the repayment of its debt."
Maybe their council gave them some leeway and supported them. Cos now -
Councillor Jon Collins, Leader of Nottingham City Council, said: “This is important news for the city and we were happy to work with Nottingham Forest to help make it happen.
“We’re lucky enough to have a rich sporting heritage in the city. This redevelopment will enable Forest, with an eye on hosting major fixtures into the future, to modernise and improve their stadium by creating world-class facilities to be enjoyed by the people of the city.