Rebekah L. Sanders

The Republic | azcentral.com

An out-of-state investor group is proposing to build a new, privately funded baseball stadium in downtown Phoenix to replace the current home of the Arizona Diamondbacks, the group's local representative has told The Arizona Republic.

Private investors began talks this summer with Maricopa County officials to purchase Chase Field, the team's 18-year-old home, with the goal of refurbishing it to keep the Diamondbacks there through 2028.

The deal was touted as the answer to a team dispute with the county over paying for expensive stadium upgrades. But talks broke down between the team and investors, and the county recently extended a negotiation deadline.

Now, for the first time, the buyer group says it is proposing to build a brand-new stadium for the Diamondbacks without taxpayer financing, according to a statement shared with The Republic.

"For decades the Arizona taxpayer has funded billions of dollars for the construction and renovation of stadiums and arenas," wrote Nick Wood, a Valley attorney for the private investors, Stadium Real Estate Partners II LLC. "Today, my client, together with real estate developer Egbert Perry, Chairman of Fannie Mae and President of Integral Group LLC, has stepped up to relieve the taxpayer of that extraordinary expense and seeks to not only purchase Chase Field, but to also construct a brand new, state-of-the-art, downtown baseball stadium for the Diamondbacks using all private money."

What's undisclosed: the proposed location of a new stadium in downtown Phoenix, when construction could begin and the cost, which likely would run to the hundreds of millions. Wood would not clarify any of those questions.

Wood also represents the Arizona Coyotes. The team is seeking a new arena downtown, but Wood has previously said the two deals are not linked.

Maricopa County officials were surprised to learn of the stadium proposal.

"It is news to us," county spokesman Fields Moseley said.

But he noted that the idea doesn't necessarily cancel the original plan. The investors could be looking decades down the road, Moseley said.

The buyer group initially proposed to the Board of Supervisors to bring Chase Field up to "state-of-the-art" standards within a year of taking ownership and signed a legally binding agreement with the county to keep the team there until 2028.

After that, all options are on the table, Moseley said.

"They're looking 20, 30 years down the road. What is the downtown sports and entertainment district going to look like?" he said.

Friday's announcement comes as discussions have reached a stalemate.

Besides a cursory phone call on Oct. 5, the Diamondbacks haven't heard from Wood and another attorney for the investors, said Leo Beus, a Valley attorney representing the team.

"We haven't had any meetings, we haven't had any discussions beyond that," Beus said. "We made it crystal clear we're going to be cooperative in every way. Having said that, we asked the most basic questions, and there has been a declination in providing that. No letter, no phone call, no email."

Maricopa County extends Chase Field negotiations

The team asked for "very embryonic things you would do in any kind of deal," he said, such as identities of the investors, a business plan, sources of funding and past projects. "I'm not going to take Ken and Derrick's time (team majority owner Ken Kendrick and team president Derrick Hall) until we know who they are."

After two weeks of hearing nothing, Beus sent a letter asking if the deal was off.

"Based on what you found during your due diligence, we understand," he said he wrote to Wood on Oct. 21.

Beus would not explain the concerns he brought up. But a major issue at the stadium is deterioration of concrete and steel.

Woods told The Republic the Diamondbacks were asking too much.

"Frankly, the type of information that the Diamondbacks have asked my client to produce, as a precondition to meeting, is typically 'exchanged' between the parties during meaningful negotiations, not as a precondition to sitting down and saying 'hello,' " he said. "For example, my client is not interested in seeing the books and records of the Diamondbacks, or understanding the Diamondbacks future business plan, until we know that a deal, in principal, has been outlined between the business people."

Talks for Maricopa County to sell Chase Field stall, but new appraisal of value possible

Those financial details would be exchanged once a preliminary deal is inked, Wood said.

"My client remains willing to 'unconditionally' meet with the owners of the Diamondbacks to negotiate for the construction of a new stadium that will create something very special for not only the Diamondbacks and their fans, but also for the taxpayers of the City of Phoenix and Maricopa County," he concluded.

Maricopa County Board of Supervisors Chairman Clint Hickman said it is up to the buyer group and team officials to work out a deal.

"I don't know if there's a delay on one side or another side," he said. "I'd kind of like to see how this progresses."