Publication Date: October 2, 2025, 11:08h.
Updated on: October 2, 2025, 11:08h.
- Grand Sierra Resort has commenced construction on its $435 million sports arena
- The arena marks the initial phase of GSR’s $1 billion expansion project
After extensive planning, Grand Sierra Resort has officially begun the ambitious $1 billion expansion.
Owned by the Meruelo Group, GSR celebrated a ceremonial groundbreaking event on Tuesday. Supported in part by the city through tax incentives, this $1 billion project kicks off with the construction of a $435 million sports arena and a community ice rink.
Named the Reno Arena, this facility will host the University of Nevada, Reno’s men’s basketball team and aims to attract major events including popular concerts and NCAA March Madness games.
Billionaire Alex Meruelo acquired Grand Sierra in 2011 for $42 million, investing over $400 million into property renovations since then.
Reno Revitalizer
Meruelo, also the owner of the Sahara on the Las Vegas Strip, remains optimistic about the future of Reno. He isn’t alone; Jacobs Entertainment is also making significant investments in revitalizing the Sands Regency and its Neon Lion development.
On Tuesday, Meruelo pledged $1 million to support the Wolfpack’s men’s and women’s basketball programs, expecting a substantial return on investment.
“I want a national championship,” Meruelo expressed to the audience at the arena’s groundbreaking.
“This marks a historic moment for our community, for Northern Nevada, and for the University of Nevada,” remarked Brian Sandoval, former governor and current president of the University of Nevada, Reno.
“Having lived and studied here, I’m thrilled to see such projects becoming a reality in our region,” Sandoval continued. “This community should feel excited about the prospect of world-class sporting events, concerts, and shows taking place right here.”
Following the completion of the arena, Meruelo has plans to invest an additional $600 million towards a new hotel tower at Grand Sierra Resort. Future developments include an aqua driving range featuring floating island greens, expanded retail spaces, and affordable housing options for the workforce.
Currently, GSR features approximately 2,000 hotel rooms, along with a casino that houses 1,400 slot machines and 45 live dealer table games.
Tax Incentives
Meruelo’s ambitions for Reno have sparked some debate. In May, the Reno Redevelopment Agency Board voted 5-2 in favor of granting him Tax Increment Financing (TIF), which will return nearly $61.3 million in property taxes back to Meruelo.
TIF agreements are public financing mechanisms aimed at boosting economic development. City officials assert that this deal won’t cost taxpayers anything, as the arena and expansion might not have materialized without the TIF incentive, thereby generating property tax revenues.
Meruelo initially requested $100 million in tax rebates, but the city negotiated a lower sum, with the incentives set to expire in 2035.
“I didn’t get everything I hoped for,” Meruelo expressed to the Reno Gazette-Journal. “However, neither did the city. It was truly a compromise, which is the essence of this country.”