Reno redevelopment board approves GSR tax-increment deal to help build arena for UNR

The Reno Redevelopment Agency voted to approve a tax-increment financing (TIF) participation agreement with Grand Sierra Resort that will redirect a portion of the project’s future property tax growth to reimburse the developer for part of the arena and related infrastructure costs.

The agency approved the deal after a lengthy public hearing and a presentation by the developer and independent consultants; the measure passed on a 6–1 roll call vote by the agency board. The approved term sheet calls for a pay-as-you-go reimbursement tied to property tax increment generated by the built project through the redevelopment area’s current sunset date in 2035.

The agreement is structured so the city and agency assume no upfront debt or general-fund exposure. The developer, which has proposed a phased expansion of Grand Sierra Resort including a 10,000-seat arena, will build the project and pay property taxes as the assessor values the new buildings. The agency will then reimburse the developer a negotiated percentage of the new property tax each year once the tax increment arrives in the agency’s bank account.

Why it matters

Backers say the privately financed arena would raise Reno’s profile, provide a new home for University of Nevada athletics and concerts and generate new local jobs and tax revenue. Local officials and university leaders argued the project could spur tens of millions of dollars in new tax revenue for the city, county and school district over time and create immediate construction work.

Independent consultant Hunden Partners presented the agency with a financial gap analysis that found phase 1 construction costs of roughly $786 million and a gap of approximately $145.8 million between private returns and the developer’s required rate of return. Hunden estimated the property-tax increment that could be captured by the redevelopment area before its 2035 sunset at roughly $68.1 million; staff and Hunden recommended a 90/10 split in which the developer would receive 90 percent of the captured increment, with the agency retaining the remainder for local public investments. The staff-recommended terms in the board packet show a projected reimbursement to the developer of about $61.3 million through 2035 under the proposed structure; additional new taxes generated after 2035 would revert to the taxing jurisdictions under Nevada law.

What the city approved and the vote

- The agency approved a participation agreement reflecting a pay-as-you-go TIF structure. The participation agreement requires the developer to complete the eligible improvements and trigger reimbursement only from actual increment collected by the agency. - The agency vote was taken after public comment and consultant presentations; the board voted 6–1 in favor (Vice Mayor Taylor voted no; the remaining board members voted yes). - The participation agreement includes performance protections and a maturity date tied to the redevelopment area sunset; the note that may be used to document the agreement expressly limits repayment to captured increment during the redevelopment area term and provides that any unpaid balance is not an obligation of the city’s general fund.

What proponents said

University of Nevada President Brian Sandoval told the board the arena is “a once-in-a-generation opportunity” to expand the university’s visibility, support its athletics program and help retain students and faculty. University athletic director Stephanie Remp said the arena would create premium ticketing and hospitality revenue streams the team needs to compete at a higher level and that the university will not use student fees or university funds to build the facility.

Owner Alex Morello told the board he plans to invest the majority of the capital privately and said he will contribute additional community benefits; during the meeting he announced a voluntary contribution of 5 percent of certain proceeds to local youth-sports and recreation efforts (a separate private commitment described at the meeting).

What opponents said

Public commenters asked the board to scrutinize displacement effects, long‑term costs and whether private benefits outweigh public policy goals. Several commenters questioned whether the capture of future property tax to reimburse a private owner is precedent setting for Reno and whether the city has adequate protections.

Key numeric details (as reported in agency presentation and staff memo)

- Phase 1 cost estimate (arena + parking + ancillary improvements): about $786 million (Hunden Partners). - Identified private financing “gap” (but‑for gap to meet developer return): about $145.8 million. - Estimated property‑tax increment available through RDA sunset (2035): about $68.1 million. - Staff/Hunden suggested split for captured increment: 90% to developer / 10% to agency; staff estimated the developer reimbursement to total roughly $61.3 million through 2035 under those terms. - RDA vote: 6 yes, 1 no.

Discussion and next steps

The RDA authorized staff to finalize the participation agreement based on the approved deal terms and to have the agency’s executive director (the city manager) execute the final agreement. The agreement is expressly structured to limit repayments to increment actually collected by the agency and to terminate at the redevelopment area sunset unless the Legislature acts to extend or otherwise amend RDA 2. If the redevelopment area is later extended, the participation agreement would require re‑examination and any material change would return to the board for approval.

The developer and the University of Nevada said they will continue community engagement. Hunden Partners has provided the city and board with the consultant analysis underpinning the staff recommendation. The development team said it will pursue final design, permitting and contractor procurement now that the agency has approved the term sheet.

Ending

Board members said the vote was difficult and acknowledged persistent concerns about precedent and displacement, but several said the city lacks tools to attract and enable projects of this scale without private partners. The RDA’s approval creates a conditional pathway for the arena project to move forward; the actual reimbursements will depend on the project’s completion, the assessor’s valuation and the increment that appears in the agency’s accounts.

Topics_primary: redevelopment_finance