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RDA recommends 100% of available TIF through 2035 for 106‑unit workforce housing project, defers supplemental funding pending RDA time‑extension effort
Summary
After a gap analysis showed Cold Water Capital’s 521 Lake Street project would generate roughly $1.8 million in tax increment through RDA2's current sunset in 2035 but needs about $3.1 million to meet typical lender thresholds, the advisory board recommended using 100% of TIFF receipts through 2035 and agreed to revisit any additional supplemental financing if the city pursues a legislative extension of RDA2.
The redevelopment advisory board on April 6 recommended that the Reno Redevelopment Agency support Cold Water Capital’s proposed 106‑unit workforce housing project at 521 Lake Street by committing 100% of tax‑increment revenues generated by the site through the RDA2 sunset in December 2035. The recommendation stops short of funding the full gap the developer described and directs staff and the applicant to return with options should the city pursue an extension.
Cold Water Capital principals Mitch Morris and Jeff Wood described a compact, high‑efficiency product of roughly 400 square‑foot units intended to be affordable to workers at about 50–60% of area median income. The proposed building would have no on‑site parking and rely on nearby transit and existing parking resources.
"We really want it to be not only attainable but also livable," Morris said, describing in‑unit washers/dryers and full‑size appliances planned for the units.
SP Freeman, hired by staff to do a gap analysis, reported the project would create approximately $1.8 million in tax increment through 2035 — less than the $3.1 million the consultant estimated the project needs to reach typical lender thresholds (a roughly 6.5% yield on cost). The remaining delta reflects a shorter available increment stream because RDA2 sunsets at the end of 2035.
Staff and board members discussed options beyond immediate reserve funding: seeking an extension of RDA2’s life (a bill draft request to the legislature), impact‑fee credits, fee deferrals, or an annual supplemental payment phased through the remainder of RDA2. Several members cautioned against establishing a precedent of using large reserves to backfill every TIFF shortfall.
After extended discussion, the advisory board voted to recommend that the RDA reimburse 100% of the TIFF generated by the project through the current RDA2 sunset date (2035). The board also directed staff to pursue and report back on options tied to a time‑extension if the city elects to submit a bill draft request to the legislature, and to return with supplemental funding options only after council/RDA action on any extension.
Staff noted this recommendation would allow the developer to proceed with design and further financing conversations while the city and RDA study whether a statutory extension is feasible and advisable.
Vote/Action: advisory board recommendation made to the RDA to fund 100% of TIFF receipts through December 2035 and to revisit supplemental financing contingent on any future extension. Detailed vote tallies were not specified in the meeting record.
