Reno RDA advisory board backs term sheet to secure ACES, transfer stadium to Nevada Land

The City of Reno Redevelopment Agency advisory board on Jan. 26 unanimously recommended staff’s negotiated term sheet with Nevada Land and the Reno ACES, a move meant to secure the ACES franchise in Reno through 2049 and to prompt capital investment in and around the downtown stadium.

Staff, represented on the record by Ashley (assistant city manager/attorney), told the board the draft term sheet would transfer stadium ownership to Nevada Land and includes a non-relocation clause through 2049, a $40 million capital-commitment pledge from Nevada Land (50% within five years, remainder within 10 years), and a land-and-stadium clawback that would revert clear title to the city on an uncured breach.

The proposal would also preserve current property-tax practice—ACES pays property tax as a possessory interest—with taxes flowing to the redevelopment agency. Staff noted an existing county–ACES reimbursement agreement allows up to $100,000 annually from Washoe County’s portion to be used for stadium capital. Crucially, the negotiated term would shift the city’s existing $1,000,000 annual obligation so it is paid from the redevelopment agency instead of being backed by the city’s general fund.

Eric Edelstein, president of the Reno ACES, told the board the stadium operates at roughly $5,000,000 in annual operating expenses plus another $2 million to $4 million in capital needs in a typical year. "About $5,000,000 in annual operating expenses and another, call it, 2 to 4 in capital expenses," Edelstein said on the record.

Board members pressed staff on risk and budget alignment. Kurt Stitzer noted the ownership group previously accepted approximately a $20,000,000 write-down when the original $50,000,000 obligation was restructured to $30,000,000 in 2012–2013; staff said that haircut had already occurred. Members asked whether shifting the obligation exposed the city or the RDA to new unsecured risk; staff and counsel said the developer agreed to take on that risk and that the $1,000,000 payout has been included in the budget presented to the board.

Staff told the board there is not a current appraisal of the stadium value and confirmed the remaining city payment obligation is about $18,000,000 under the existing schedule: RDA 2 will fund payments until it sunsets in 2035, then RDA 1 will fund through 2043. Board members requested staff consider softening default provisions that would allow the city different remedies if the city failed to make payments rather than simultaneously voiding developer obligations and continuing to be liable for balances.

Members also asked where the $40,000,000 capital would be deployed; staff said investments must occur in a redevelopment area and noted a Ballpark District map will be used to refine location restrictions. On the prospect of a sale, Eric Edelstein said Major League Baseball conducts an intensive ownership vetting process for any new owner and that sale approvals would be subject to that vetting.

After discussion, Member Kurt Stitzer moved to approve the staff recommendation and Jay Kenny seconded. The board voted aye and the motion passed unanimously. The advisory board’s recommendation will proceed to the Reno City Council and the Redevelopment Agency on Jan. 28 for consideration and potential adoption.

Next steps: staff will bring the term sheet and final documents to the RDA and City Council on Jan. 28; the advisory board will monitor implementation and budget alignment as capital investments and any final agreements are negotiated.