A Tax-Incremental Financing contract was approved by the Reno Redevelopment Agency for the introductory phase of The Merulo Group’s planned Grand Sierra Resort Expansion.
The first phase is comprised of a 10KSF arena, a parking garage with 2,400 spaces, a golf driving range and a 50KSF community ice rink. The Merulo Group is the owner. Gensler was confirmed to be the architect on the project.
The arena is to be a partnership with the University of Nevada, Reno to provide a new home for its basketball team. UNR is not, however, offering financial support. The arena will also serve as a concert venue and be able to hold family shows and hockey games.
The contract stipulates GSR is to be reimbursed for 90% of its property taxes. The remaining 10% is to go to the Redevelopment Agency. The contract is set to end in 2035. Furthermore, The Merulo Group said it would turn the lease of Fire Station 21 over to the City, while also providing an additional 5% of its 90% property tax reimbursement earnings to youth sports facilities.
Once the contract sunsets in 2035, the City of Reno will collect 26% of property taxes. Washoe County will receive 38%. The Washoe County School District is to receive 31%, while the State of Nevada will receive 5%, and Truckee Meadows Underground Water is to receive 0.1%.
The first phase is estimated to cost $786M. Prior to the contract, developers had a $145.8M deficit. The approved contract will help supply $68M in funding. The project is expected to generate $294M in property tax for the entities over the next 30 years. The entities are also expected to receive $146M in sales tax revenue over the same period.
GSR is eligible to negotiate an extension for its TIF contract if the redevelopment districts are expanded for another 20 years. The redevelopment districts were originally established in 2025 and are set to expire in 2035. (NVBEX; April 3)
Approved Despite Concerns
The Reno Redevelopment Agency is made up of the Reno City Council.
While the contract was ultimately approved, some councilmembers were cautious as they feared the project may only benefit tourism and the City, not the community. Councilmembers also believed City funding should be used to prioritize struggling areas like downtown Reno.
Other councilmembers, namely Mayor Hillary Schieve, were very supportive of the project given its large scale. In her support of the project, Mayor Schieve said, “I want to send a message to the outside world that Reno is doing something.”
Notably, the project saw 600 letters of support from the public and only 30 letters of opposition.
Multi-Phase Project
While project details have yet to be set in stone, Merulo has discussed the addition of a hotel with more than 800 rooms and 300 housing units, some of which are to be affordable. The Merulo Group is also considering the addition of 25KSF of retail space. The Merulo Group stated it wants the arena to be ready for the 2027 basketball season. (Source)