Reno Casino Firm Jacobs Entertainment Sweetens Deal to Buy City Land
Posted on: July 29, 2021, 11:59h.
Last updated on: July 29, 2021, 02:53h.
Reno casino owner and operator Jacobs Entertainment has entered into an agreement to acquire land from the city. This week, council members signed off on Jacobs paying more than $3.07 million for the properties.
The Reno City Council this week voted in favor of selling two downtown parcels to the privately held Colorado-based gaming and hospitality firm. After initially submitting what local leaders considered a lowball offer, Jacobs sweetened its bid.
The $3.07 million includes $2.44 million for West Second Street, which is currently a parking lot, and $631,600 for the vacant 290 Keystone Avenue parcel. Should Jacobs Entertainment sell either property in the future, Reno stands to collect 25 percent of the net proceeds.
You’re getting paid today as well as profit sharing in the future,” Jacobs Entertainment attorney Garrett Gordon told the Reno council. “It’s a very innovative project that’s a win-win.”
Jacobs Entertainment owns and operates the Sands Regency in “The Biggest Little City in the World.” Jacobs acquired the Reno casino resort in 2017 for $30 million from Truckee Gaming.
Jacobs additionally owns Gold Dust casinos in Reno, Carson City, and Elko. In Colorado, Jacobs’ portfolio includes The Gilpin and Lodge casinos in Black Hawk. The company additionally operates dozens of Cash Magic truck plaza video poker parlors in Louisiana.
Reno Betters Offer
Jacobs’ original bid for both downtown Reno properties was a measly $100,000. Jacobs argued that the city should be willing to afford to sell the parcels to the company at that low price due to the casino company’s commitment to bettering the Nevada city.
Jacobs is amid a redevelopment initiative dubbed the Neon Line. The West Second Street corridor overhaul is a mixed-use project that stretches from the Sands Regency to Keystone Avenue. The planned pedestrian-friendly corridor is to feature entertainment venues, restaurants, parks, retail shopping, residences, and workspaces.
While some Reno councilmembers were in favor of selling the properties to Jacobs for just a hundred grand, the majority were not. Jacobs, as a result, upped its ante.
Jacobs previously paid Reno $50,000 for the exclusive option to purchase the two parcels. With the council not budging on the price, the casino group opted to pay full fare for the acreage and parking lot.
Nevada Housing Boom
The population in Southern Nevada is expected to grow a large 42 percent by 2060. That’s approximately one million additional residents in Clark County.
In Nevada’s northern Washoe County, Reno’s home, the population is also forecast to swell. The Economic Development Authority of Western Nevada believes the region’s population will grow by 8.6 percent by the end of 2023.
Nevada’s lack of a state income tax is extraordinarily attractive to Californians seeking refuge from heavily taxed governments. Reno’s geography is also enticing to many, as the city is near lakes and mountains.
The city’s economy is broad. The downtown area today is home to tech-based and entrepreneurial startups. Reno also provides quality health care by way of the Reno Medical Center and St. Mary’s and offers quality education with the University of Nevada, Reno.
Reno has consistently been among the top 100 places to live, according to the website Livability.com.
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