Grand Sierra Secures Property Tax Reimbursements for $435 Million Reno Arena
Posted on: May 11, 2025, 09:36h.
Last updated on: May 11, 2025, 09:36h.
- Reno city officials have agreed to return property taxes for an indoor sports arena
- The $435 million sports facility will be built at the Grand Sierra Resort
- The arena will become home to the University of Nevada, Reno’s men’s basketball team
Billionaire Alex Meruelo has secured property tax rebates that he says are critical to helping him construct a $435 million indoor sports arena at his Grand Sierra Resort in Reno.
Part of a $1 billion, multiphase expansion and redevelopment of the Downtown Reno destination, the Meruelo Group asked the city for property tax rebates in exchange for bringing a premier multiuse indoor sports facility to “The Biggest Little City in the World.” Along with hosting major concerts and events, Meruelo has pledged to allow the 10,0000-seat arena to become home to the University of Nevada, Reno’s men’s basketball team.
Last week, the Reno Redevelopment Agency Board voted 5-2 to approve a scaled-back Tax Increment Financing (TIF) application from Meruelo. The vote authorized the city to return up to $61.29 million in property taxes to the Meruelo Group through 2035.
Brian Sandoval, Nevada’s former two-term Republican governor who became president of the University of Nevada, Reno, in October 2020, celebrated the taxpayer-funded terms. Meruelo initially sought $97 million in city rebates.
To be competitive in college sports, we have to have a venue and the ability to generate revenue. I’m not into competing — I’m into winning,” Sandoval said ahead of the Reno Redevelopment Agency Board vote. “The GSR project checks every single box.”
The Wolfpack men’s basketball team has qualified for the NCAA Division I Men’s Basketball Tournament, or March Madness, five times since 2017, but last reached the Sweet Sixteen in 2018.
Grand Sierra Resort Expansion
The TIF agreement will aid in Meruelo’s embarking on the Grand Sierra Resort Reno Arena and another $350.7 million investment to bring an “aqua driving range,” an indoor community ice rink, and a 2,400-seat parking garage to the resort casino.
To sweeten his TIF application, Meruelo agreed to hand over the property he leases to Fire Station 21 to the city and allocate 5% of his property tax reimbursements to youth sports in the city. Meruelo said he heard from all community members and stakeholders and took into account their many concerns.
“I’ve heard from every single one of you. It’s impacted me,” Meruelo said at the Redevelopment Agency meeting.
Grand Sierra’s competitors, including Eldorado, Circus Circus, Silver Legacy, Peppermill, Atlantis, Boomtown, and Nugget, opposed the TIF approval. The casino coalition said it had “serious concerns” about whether funding a private company is an “appropriate use of TIF under Nevada law.”
Nevada NRS Chapter 279 allows Tax Increment Financing for projects in a “blighted area” where the building or development will benefit “all inhabitants and property owners” in the community.
No Financial Impact to City
Since the property tax rebates will only be for a development that wouldn’t otherwise be built without the TIF, local officials said the reimbursements present no financial risk to the city’s budget. City Revitalization Manager Bryan McArdle explained that Reno will simply be returning property tax money through 2035 to Meruelo, money that the city wouldn’t have otherwise collected if the TIF hadn’t been approved in the first place.
Reno is amid a revitalization. Along with GSR, Jacobs Entertainment continues to invest in its J Resort overhaul and Reno Neon Line. And in March, the former Harrah’s was confirmed for redevelopment into a mixed-use facility.
No comments yet