By james art Developers behind a massive arena project at Reno’s Grand Sierra Resort intend to ask the city of Reno for public funding to help pay for the project, a change from the developers’ previous comments that no public funding would be used.
According to agenda items posted online ahead of Wednesday’s Redevelopment Agency board meeting, Power Sports Development has filed a tax-increment financing (TIF) application to support the $1 billion development.
Nevada Arena will be home to the Nevada men’s basketball team and a potential AHL hockey team owned by GSR’s Alex Mereullo. The latest plans will include a 10,000-seat arena, satellite ice rink, dedicated parking garage, fan zone, workforce housing and more.
Tax increment financing is a public financing mechanism that allows developers to receive a subsidy in exchange for the additional property tax revenue generated by such a large project.
The staff report states that city officials have determined the GSR project meets the criteria for a “catalyst,” meaning it could qualify for TIF.
“The project is expected to generate significant economic benefits, including job creation during construction and operation, increased tax revenue, improved infrastructure and a boost to tourism and local business,” officials wrote.
The Redevelopment Agency board, which is made up of the seven city council members, is scheduled to meet during Wednesday’s Reno City Council meeting. The council may open the remediation agency agenda at any time at a regularly scheduled council meeting.
“Next steps include a formal review and due diligence phase, including a third-party feasibility analysis. This analysis will evaluate the project’s financial assumptions, economic impact and the terms of a public-private partnership between the City of Reno Redevelopment Agency and Power Sports Development, LLC,” officials wrote.
The exact structure of a possible deal is not yet ready and will be determined during the due diligence process. Wednesday’s agenda item would simply allow the city and developers to take the first steps toward negotiating such a deal.
READ the full staff report here: