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Sparks Redevelopment Agency approves $10 million purchase of 7.8‑acre Marina Gateway parcel for potential future city hall
Summary
The Sparks Redevelopment Agency voted unanimously to buy a 7.8‑acre parcel at 650 Marina Gateway Drive from Oakmont Properties Azure LLC for $10 million. Staff framed the purchase as consistent with the Redevelopment Area 2 plan and a way to secure land for a potential future city hall without using general fund dollars or issuing new city debt.
The Sparks Redevelopment Agency approved a purchase and sale agreement (SRA‑AC‑334) on Aug. 25 to buy 650 Marina Gateway Drive, a 7.8‑acre parcel in Redevelopment Area 2, for $10,000,000. The motion passed unanimously among agency members present.
Jim Rundle, community services director, told the agency the parcel aligns with a redevelopment plan adopted in 1999 intended to eliminate blight and encourage investment in the Marina district. "This purchase could address the city's aging infrastructure. It supports long term growth and use a dedicated redevelopment funds without impacting the general fund or requiring new debt of the general fund," Rundle said.
Funding and legal authority: Jeff Kronk, the agency chief financial officer, said proceeds from past property sales have been held in the redevelopment revolving fund. Redevelopment funds are restricted to projects within the redevelopment area and uses consistent with NRS chapter 279, staff said. Rundle and staff told members that land acquisition within an RDA is an expressly permitted use under state law.
Valuation and outreach: The agency discussed market comparables and appraisal practice. Tom Fennell of Dixon Commercial Group described the valuation approach used in negotiations: comparing likely price‑per‑unit for an entitled multifamily development and recent comparable sales. "The average price per door is really what... a private party would be looking at. It's about $35,000 per door in the Reno‑Sparks area. And so our current pricing where we're at on that is about $23,000 a door, which was below that kind of... market value," Fennell said.
What comes next: Staff said the acquisition secures a strategic site for consideration of a future city hall but that the redevelopment agency does not itself authorize construction. Any design, construction or use decisions would go to the city council and require separate approvals; redevelopment funds could be used for planning, furnishing or moving costs should the council approve such projects.
Ending: Agency members voiced broad support, noting that securing land at today’s price could avoid higher costs later and that selling existing city properties could generate general‑fund revenue. The purchase will be carried out by the chief administrative officer executing escrow documents.
