Advisory board recommends proactive vacant storefront activation strategy with lease-option element

The Redevelopment Agency Advisory Board recommended May 4 that staff pursue a direct market participation strategy to activate vacant storefronts in the downtown Virginia Street corridor and include a lease-option/master-lease element to reduce landlord risk and support small local businesses.

Rachel Baggins, the city's placemaking manager, reviewed four models — direct market participation, broker facilitation with incentives, pop-up activations and incubators, and property acquisition — that other cities use to reduce vacancy and drive pedestrian traffic. Baggins told the board staff had $150,000 in the FY26 retail-attraction budget and a proposed additional $150,000 in next year's budget to seed a program.

Board members emphasized practical constraints: oversized footprints, high permit costs for change of use, and property owners who may be disincentivized by Nevada's property tax structure. Members recommended starting conservatively with targeted leases or master leases and tenant-improvement support to create smaller, more affordable footprints.

"We have to pick an option that addresses oversized footprints and the cost barrier so small businesses can open without investing hundreds of thousands up front," said one member during discussion. The motion recommending option 1 with the lease-option addition passed; staff was directed to return with implementation details and a prioritized list of candidate properties.

Why it matters: downtown vacancy has depressed investment and perceptions of safety; the board signaled a willingness to pilot city-led activations with limited budget and to explore scaling if initial pilots succeed.