By james art The Reno City Council gave prior approval for the possible provision of financial support for Grand Sierra Resort(GSR) ambitious arena project. This solution will enable a third party review to gather more information and assess the impact of the project. Although the city has no funds have been allocated yetand a final decision pending, the vote allows city officials to explore potential avenues for cooperation.
The project could be a significant boon for Renault
proposed by GSR 400 million dollars arena will host the University of Nevada, Reno men’s basketball team. The project includes a state-of-the-art 10,000 seats sports and concert facility. It will include retail outlets, a range of dining options, premium apartments and other features in addition to sports facilities. Construction should begin in spring 2025and the arena can open up to autumn 2027.
To fund the development, GSR asked 97 million dollars in tax increment financing (TIF) — 9.7% from the project evaluation $1 billion price tag. The TIF would effectively divert some of the future property tax revenue increases the project would bring in, their reinvestment back in development. Mayor of Reno Hilary Sheave was adamant that the city does not give money directly to developers.
We don’t give them a check.
Hilary Scheeve, Mayor of Reno
In addition to potential tax revenue, Grand Sierra Resort promises to create 5,300 construction jobs and 65 permanent positions after completion. The city thinks it can import $4.5 million a year in sales tax and excl 3.8 million dollars when submitting tax returns. In addition, the planned arena can host various high-profile tournaments, boosting tourism and benefiting the surrounding area.
GSR promises that all funding will remain transparent
Despite the potential benefits to the city, not all council members agree to the tax increase plan. council member Jenny Breckhuswho voted against moving the proposal forward, said she was concerned the city had to use its own limited resources to take advantage of disadvantaged communities instead of focusing on hot spots like GSR.
Addressing these reservations, the GSR released an official statement confirming that he does not want the city to issue bonds, risk mitigation if the project blocks. The company noted that the financing of the project was completely transparent and that neither the University of Nevada nor other property owners will be asked to contribute to the development of the GSR.
The City of Reno has taken a thoughtful and measured approach to improving the RDA process.
GSR statement
Like GSR and the city of Reno continue their dialoguethe final decision on whether to proceed with tax increase financing will depend on the newly commissioned independent analysis. Such high profile projects can significant influence local infrastructure and service requirements in addition to their social impact, which justifies Reno’s caution.