Grand Sierra Resort, which is seeking $97 million in tax increment financing, released a statement Wednesday afternoon during a Reno City Council meeting ahead of a meeting with the Redevelopment Agency board.
GSR plans a $1 billion private investment in the resort, including $400 million to house Nevada men's basketball and an AHL team owned by fellow GSR owner Alex Meruelo. This includes the construction of an arena.
Since the project was announced in September 2023, UNR Chairman and former Nevada Governor Brian Sandoval said in a press conference 13 months ago that “no public funds will be invested in this entertainment district.” It was believed that no public funds would be required to renovate the red-light district. Meruelo's remarks that day said the project would not cost the university a dollar, and a GSR spokesperson told sister station KRNV on Tuesday that Sandoval was speaking on behalf of the university. He said he was speaking on behalf of the university, and not on behalf of the university. G.S.R.
GSR's statement Wednesday said the city of Reno was not required to issue any bonds for the project and the city would not be exposed to financial risk if the project is not completed. The full statement is below.
Grand Sierra Resort (GSR) looks forward to working with the City of Reno as it continues its plans to make historic investments in the region. Our development team has been working for over a year on a comprehensive master plan that will transform GSR into an unparalleled entertainment destination over the next 10 years. The cornerstone of the project is the construction of a new world-class arena that will host live events such as concerts and become the new home of the Nevada men's basketball team. The project is being funded by a $1 billion investment by Alex Meruelo, owner of Grand Sierra Resort. He has consistently maintained that the University of Nevada is not required to contribute anything financially to the arena's construction.
The City of Reno established the Reno Redevelopment Authority in 1983. It is a tool to encourage the development of projects that would otherwise not be built, resulting in tax benefits for the city, improved quality of life for citizens, and value creation. This is accomplished through increased property taxes, which have been leveraged in the construction of several developments in downtown Reno over the past few decades and have been an important tool for generating new investment in the area. .
Until recently, the City of Reno did not have a standardized process within the Reno Development Authority (RDA) to evaluate development projects and assess their merits, the developer's ability to complete the project, and their impact on the city as a whole. It was. On August 14, the Reno City Council, which acts as the Reno Redevelopment Agency Board of Directors, adopted a comprehensive new application process as part of the city's efforts to enhance due diligence for RDA projects. This is an important step to increase transparency and ensure that all applications are thoroughly reviewed before being considered by the board. Additionally, the City Council reinstated the Redevelopment Agency Advisory Board (RAAB) and brought in Reno residents with technical expertise to further support the review process. Following the adoption of this new framework, GSR has submitted an application to initiate a formal review.
As the review process begins, several points need to be made clear to the public.
GSR is not seeking general funds from the City of Reno.
The city is not required to raise debt for this project, so there is no financial risk to the city if the project is not completed as planned. The Meruelo Group will do its best to complete construction as planned.
Other property owners are not asked to contribute to GSR development.
RDA funds are generated from newly created asset values, so if GSR does not invest in projects such as arenas, lake improvements, and employee housing, there will be no corresponding increase in asset value and, therefore, new There are no increments to invest. project.
RDA has existed in Reno for the past 41 years, but RDA 2's lifespan expires in 2035, so it is a finite incentive program.
GSR is the first applicant to this new transparent RDA program, and we understand that it will attract a lot of attention given the scale of Meruelo's planned investment. As RDA operations have recently undergone significant improvements, it is important that the public has a clear understanding of how the process works.
The City of Reno has taken a thoughtful and measured approach to improving the RDA process and is commendable for its efforts to implement meaningful reforms.
The arena portion of the project is scheduled to begin in spring 2025, with an expected completion date for the entire $1 billion project in fall 2035. per presentation It is scheduled to be considered by the Reno City Council Wednesday night.
Below is a video of the project released by GSR in July.
