The Reno Redevelopment Agency voted unanimously Dec. 3 to authorize an owner participation agreement that would reimburse up to 90% of tax increment from a new development to pay for public improvements needed to make the project feasible.

RDA staff said consultant SB Friedman identified a financing “gap” of about $3.24 million for the East Commercial Row project, a Valeo‑led proposal to assemble river parcels near Sutro Street and the Wells overpass and build 200 rental townhomes with about 424 parking spaces. Staff recommended a 90% participation rate — roughly $2.9 million — to be paid on a pay‑as‑you‑go basis after taxes are assessed.

"This site is a longstanding blight and clean‑up cost to the city," said Brian McCardle, the city’s revitalization manager. He told board members the property currently generates roughly $53,000 in annual property tax; with the project built the parcel is projected to generate about $538,000 a year. McCardle said the RDA’s share of increment would support required off‑site and riverfront work — a sound wall, drainage improvements, extension of Commercial Row under the overpass and river‑edge trail work that aligns with the Truckee River vision plan.

Conrad Sik, representing developer Valeo, described the company’s experience with infill and said the assemblage and remediation costs make the financing stack marginal without RDA participation. "We see this as the catalyst to transform underused river parcels into a walkable, family‑oriented neighborhood," Sik said.

Board members pressed staff and the developer on coordination with other agencies: Reno’s flood control program, the Regional Transportation Commission (RTC) and the Truckee River flood authorities. Several members asked for assurances that river‑path design and future RTC‑led standards would be considered in the project’s public improvements.

The RDA’s proposed reimbursement is limited to public improvements and is structured as pay‑as‑you‑go: the developer builds, pays property taxes, and is reimbursed from increment distributions afterwards. Staff said there is no upfront RDA cash exposure or bond issuance under the proposed structure, and RDA audit rights would allow the agency to verify construction costs and adjust reimbursements if necessary.

The motion approved the staff recommendation to participate at 90% of annual increment through the RDA sunset in 2035, while reserving 10% for other public improvements in the district. The board also directed staff to continue coordination with flood, RTC and other partners as design work advances.

What happens next: the developer will continue finalizing parcel assemblage and financing; construction is projected to be deliverable by 2027 if financing is secured and closing conditions are met. The RDA will only reimburse the developer after taxable value is produced and collected.

Action: RDA approved the owner participation agreement terms and authorized the executive director to execute the agreement consistent with staff recommendations.