Grand Sierra Secures Property Tax Reimbursements for $435 Million Reno Arena
Billionaire Alex Meruelo has obtained property tax refunds that he claims are essential for building a $435 million indoor sports facility at his Grand Sierra Resort in Reno.
As part of a $1 billion, multi-phase expansion and redevelopment of the Downtown Reno area, the Meruelo Group requested property tax incentives from the city in return for establishing a top-tier multiuse indoor sports venue in “The Biggest Little City in the World.” In addition to organizing significant concerts and events, Meruelo has committed to making the 10,000-seat arena the home venue for the University of Nevada, Reno’s men's basketball team.
The Reno Redevelopment Agency Board approved a reduced Tax Increment Financing (TIF) application from Meruelo last week, with a vote of 5-2. The vote allowed the city to refund as much as $61.29 million in property taxes to the Meruelo Group until 2035.
Brian Sandoval, the previous two-term Republican governor of Nevada who took on the role of president of the University of Nevada, Reno in October 2020, praised the terms funded by taxpayers. Meruelo originally requested $97 million in city incentives.
"To be competitive in college sports, we have to have a venue and the ability to generate revenue. I’m not into competing — I’m into winning,” Sandoval said ahead of the Reno Redevelopment Agency Board vote. “The GSR project checks every single box.”
The Wolfpack men's basketball team has made it to the NCAA Division I Men's Basketball Tournament, also known as March Madness, on five occasions since 2017, but last advanced to the Sweet Sixteen in 2018.
Grand Sierra Resort Development
The TIF agreement will support Meruelo in launching the Grand Sierra Resort Reno Arena and a further $350.7 million investment to introduce an “aqua driving range,” an indoor ice skating rink for the community, and a 2,400-seat parking garage at the resort casino.
To enhance his TIF application, Meruelo consented to transfer the property he rents to Fire Station 21 to the city and designate 5% of his property tax refunds for youth sports in the city. Meruelo stated that he listened to all community members and stakeholders, considering their various concerns.
“I’ve heard from every single one of you. It’s impacted me,” Meruelo said at the Redevelopment Agency meeting.
Competitors of Grand Sierra, such as Eldorado, Circus Circus, Silver Legacy, Peppermill, Atlantis, Boomtown, and Nugget, challenged the TIF approval. The casino coalition expressed “serious concerns” regarding whether financing a private company constitutes an “appropriate use of TIF according to Nevada law.”
Nevada NRS Chapter 279 permits Tax Increment Financing for developments in a “blighted area” with the intention of benefiting “all residents and property owners” within the community.
No Economic Effect on City
Local officials stated that the property tax rebates will be available solely for a development that wouldn't proceed without the TIF, indicating that the reimbursements pose no financial risk to the city's budget. City Revitalization Manager Bryan McArdle stated that Reno will be returning property tax funds to Meruelo through 2035, funds that the city would not have collected if the TIF had not initially been approved.
Reno is in the process of renewal. In addition to GSR, Jacobs Entertainment persists in funding its J Resort renovation and Reno Neon Line. In March, the redevelopment of the former Harrah's into a mixed-use facility was confirmed.
