Domed stadium in jeopardy

Steve Sebelius

Tuesday, July 2, 1996 | 11:59 a.m.

A Texas investor's failure to close escrow on the 183-acre Union Pacific property downtown has left his domed stadium project in jeopardy and city officials scrambling to have a say over what develops on the land.

Paul Tanner's Dallas-based PLY Stadium Group did not close escrow Monday, the deadline for sealing the deal between his consortium of about 45 investors and the Union Pacific Railroad. PLY is a subsidiary of Tanner's Polyphase Corp., a holding company that includes forestry equipment and frozen foods firms.

The parcel is worth $120 million, but city officials said Tanner wanted to have funding in place for his entire project -- including the 110,000-seat stadium -- before the deal closed. The entire price tag is estimated at $600 million, officials said.

This is the second deadline the Tanner group has missed; UP granted an extension after the group missed a deadline earlier this year.

The revelation sent city officials scrambling during a workshop on downtown improvements, with Mayor Jan Laverty Jones directing City Attorney Brad Jerbic to draft an ordinance that would give the council some say in the development of the parcel, even if Tanner doesn't buy it.

Jones said Tanner's failure to close escrow meant the Polyphase group had lost its exclusive negotiating position for the land, opening the door for other groups to buy it and possibly submit development plans contrary to what the city wants for the last undeveloped parcel near downtown. The property is wedged between the downtown casino corridor and Interstate 15.

However, Councilman Arnie Adamsen, vice president of Stewart Title company, said it's not uncommon for escrow deadlines to be missed but have a project still go forward. Some companies negotiate for more time, offering money in return for an extension, he said.

If Tanner's deal falls through, his group would lose $7 million in earnest money it put up to negotiate for the parcel, Jones said.

Tanner could not be reached for comment Monday or early today. A receptionist at Polyphase said Monday there was no news on the deal. Union Pacific officials also could not be reached.

However, Jones said negotiations between Polyphase and Tanner's group were continuing, and the still project could proceed.

"I'm disappointed, but I have a lot of empathy for the Tanner group," Jones said. "I have no question that it (the UP land) will be developed in the best interests of the city. UP is not precluded. The project will still move forward."

Adamsen said even if the domed stadium is never built, the city should use the land to draw tourists downtown, which the city is trying desperately to renew.

"The city should continue to offer some type of entertainment venue," he said. "We have to aggressively market concepts to the private sector."

Councilman Matthew Callister agreed, saying the city should work with UP -- if Tanner's bid fails -- to create a comprehensive plan for the site.

"The game is to master plan it. Once you master plan it, the courts are much more likely to uphold the plan," he said. "For the city to turn a blind eye both to the positive and the potential negative impacts is, I think, not doing our job."

That job Monday included ordering Jerbic and Planning Director Donna Kristaponis to write an ordinance that would allow the council to create a master plan for the area. Specific legal strategies were still under study Monday afternoon, Jerbic said, but the ordinance is expected to appear on the council's July 17 agenda and could be adopted as early as Aug. 7.

Tanner