Date: October 29, 2024, 03:23h.
Last updated on: October 28, 2024, 04:25h.
The developer of Grand Sierra Resort in Reno is requesting financial aid from the city to construct a sports arena.
At recent Redevelopment Agency Board and City Council meetings, representatives from the Meruelo Group, the parent company of Grand Sierra Resort, located southeast of downtown Reno, presented their funding proposal for a 10,500-seat arena construction.
The Meruelo Group, led by Cuba-American billionaire Alex Meruelo, who also owns Sahara on the Las Vegas Strip, is requesting $97 million in city funds through a tax increment financing (TIF) plan.
Andrew Diss, Meruelo’s chief strategy officer, stated that building an arena at the casino resort would benefit the city of Reno, making the $97 million tax allocation a wise investment for the city’s economic growth. The company estimates that constructing the $400 million arena would create 5,300 construction jobs and lead to 65 permanent full-time positions.
$1B Development
The proposed arena at Grand Sierra Resort is expected to become the home arena for the University of Nevada’s men’s basketball team, and possibly a minor league hockey team (Meruelo owns the NHL Arizona Coyotes).
Meruelo is committed to providing a new arena for the Wolf Pack men’s basketball program without any cost to the school. Nevada’s women’s basketball team will continue to use the Lawlor Events Center.
The $400 million arena is just one part of the Meruelo Group’s $1 billion expansion plan. Along with the sports complex, the project includes a new hotel tower with 865 rooms, 300 affordable housing units, an ice rink, and a 2,400-space parking garage.
Bryan McArdle, the city’s revitalization manager, informed the City Council that the Redevelopment Agency staff determined that Meruelo’s TIF application met the necessary requirements to move forward for a “review and negotiation of a participation agreement.”
The project is expected to serve as a significant economic catalyst for the city, boosting tourism, enhancing local entertainment offerings, and acting as a focal point for redevelopment while also including workforce housing,” McArdle concluded.
The Reno City Council approved the hiring of a third-party consultant to conduct a comprehensive evaluation of the project. The consultant will analyze the project’s feasibility, financial projections, economic and regional impacts, and suggest terms for the public-private partnership and participation agreement.
If granted the $97 million, the Meruelo Group plans to start construction on the arena in spring and have it ready before the Nevada men’s basketball team’s 2027 regular season. The other components of the project are scheduled for completion by 2035.
Understanding TIFs
According to the Lincoln Institute of Land Policy, a Massachusetts-based nonprofit think tank focused on improving quality of life through land use, taxation, and stewardship, tax increment financing enables local governments to support economic development by earmarking property tax revenue from anticipated increases in assessed values.
TIFs are most effective in distressed areas, as property values typically rise with investments. That’s why Reno Councilor Jenny Brekhus (Ward 1) opposed the Grand Sierra arena application, as the resort is not in a distressed neighborhood.
Diss mentioned that the proposed expansion of the casino resort would benefit all parts of the city.
“Over the next decade, [Meruelo] plans to invest around $1 billion in a multi-phase development that includes sports and entertainment, retail, food and beverage, workforce housing, and most importantly — jobs. This will be Reno’s largest redevelopment project,” Diss stated.