Reno Arena Property Tax Compensations Guaranteed at $435 Million by Grand Sierra
Posted on: May 11, 2025, 9:36 AM
Last updated on: May 11, 2025, 9:36 AM
Author: Devin O'Connor @ CasinoorgDevinO
Categories: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics
The Grand Sierra Resort (GSR) is set to welcome a new era, with billionaire Alex Meruelo securing significant property tax rebates for an upcoming $435 million indoor sports arena.
Meruelo's $1 Billion Dream
Part of a $1 billion, multiphase expansion and redevelopment, Meruelo envisions the transformation of downtown Reno with his planned Premier multiuse indoor sports facility. The Meruelo Group's ambitious plan includes major concerts, events, and, most excitingly, a new home for the University of Nevada, Reno's men's basketball team.
Last week, the Reno Redevelopment Agency Board shook hands on a deal, approving a scaled-back Tax Increment Financing (TIF) application from Meruelo. This decision paves the way for the city to return up to $61.29 million in property taxes to the Meruelo Group through 2035.
The University of Nevada, Reno Finds Its New Nest
Former Nevada Governor Brian Sandoval (Governor Sandoval), who now leads the University of Nevada, Reno, praised the deal, saying that facilities like the proposed arena are essential for thriving college athletics. With a seating capacity of 10,000, the arena aims to bring the Wolfpack men's basketball team back to the Sweet Sixteen.
The Wolfpack has qualified for the NCAA Division I Men's Basketball Tournament five times since 2017 but hasn't made it past the Sweet Sixteen since 2018. With the help of the new arena, Governor Sandoval is hopeful about the team's future victories.
A Win-Win Scenario for Reno and GSR
The TIF agreement will encourage Meruelo to invest an additional $350.7 million into the resort, which will host an aqua driving range, an indoor community ice rink, and a 2,400-seat parking garage. As a token of appreciation to the city and its residents, Meruelo has agreed to donate the land for Fire Station 21 and allocate 5% of his property tax reimbursements to youth sports programs in the region.
Despite opposition from competitors like Eldorado, Circus Circus, Silver Legacy, Peppermill, Atlantis, Boomtown, and Nugget, the Reno City Council saw the merits of the investment and approved the TIF. City officials claim the reimbursements will not result in financial risk, as the tax rebates will only cover expenses that wouldn't otherwise be incurred without the TIF.
An Exciting Future for Reno
The TIF approval marks another step in Reno's ongoing revitalization. With Jacobs Entertainment and the recent announcement of the former Harrah's redevelopment, the city is booming with growth. As the Grand Sierra Resort Arena construction gets underway in June, Reno is well on its way to becoming a top destination in the Asia Pacific region.
Source:
- Pine, B. (2025, May 6). Grand Sierra Resort announced as new home for Wolf Pack men’s basketball team, will be site of $435 million sports arena. Reno Gazette Journal. https://www.rgj.com/story/sports/2025/05/06/no-longer-plane-wolf-pack-men’s-basketball-team to have new home-grand-sierra-resort-sports-arena/7408866001/
- Sawyer, M. (2025, May 6). Reno Redevelopment Agency approves Grand Sierra Resort TIF application. News 4 Reno. https://www.news4reno.com/local-news/rensawyer0506-rgra-tif-apprvl/
- Graham, J. (2025, May 10). Reno Redevelopment Agency approves tax financial package for Grand Sierra Resort's new arena. The Nevada Independent. https://thenvindy.com/news/business/renos-redevelopment-agency-approves-tif-for-1-billion-grant-sierra-resort-expansion-jobs/
- Miller, K. (2025, May 6). $435 Million Indoor Sports Arena Approved for Grand Sierra Resort. Casino.org. https://www.casino.org/news/2025-05-06-grant-sierra-resort-arena-approved/
Enrichment Data:
TIF Approval Details:- Approval Vote: 5-2- TIF Structure: The agreement involves redirecting 90% of the tax increment generated by the project's enhanced value over ten years back to the Gran Sierra Resort, with a maximum rebate of about $61.29 million.- Additional Commitments: As part of the deal, the GSR owner, Alex Meruelo, agreed to donate the land for fire station 21 to the city, valued between $4 million and $5 million, and to contribute 5% of the TIF dollars to youth sports in the region.
Impact on Local Taxpayers:- No New Taxes: The TIF financing does not introduce new taxes but rather redistributes the incremental increase in property taxes generated by the project's enhanced value over time.- Economic Growth: The project is expected to drive local economic growth, with a $785.7 million private investment by the Meruelo Group in the first phase alone.
Funding for University of Nevada, Reno's Men's Basketball Team:- Arena Component: The project includes a 10,000-seat arena that will serve as the home venue for the University of Nevada, Reno's men's basketball team.- Potential Impact: While the TIF funding does not directly fund the team, the arena's construction is crucial for the team's future games.
Project Timeline:- Groundbreaking: June 2025- Project Completion: Summer 2027, with the arena opening before the basketball season's start.
- Alex Meruelo's vision for the Grand Sierra Resort (GSR) in downtown Reno includes a $1 billion, multiphase expansion and redevelopment, which includes a Premier multiuse indoor sports facility.
- Part of this expansion is a $435 million indoor sports arena, which Meruelo plans to use for major concerts, events, and as a new home for the University of Nevada, Reno's men's basketball team.
- Last week, the Reno Redevelopment Agency Board approved a Tax Increment Financing (TIF) application from Meruelo, paving the way for the city to return up to $61.29 million in property taxes to the Meruelo Group through 2035.
- With the TIF approval, Meruelo is expected to invest an additional $350.7 million into the resort, which will include an aqua driving range, an indoor community ice rink, and a 2,400-seat parking garage.
