The Reno City Council has approved a motion to allow tax increment financing (TIF) for the Grand Sierra Resort’s massive expansion project.
The council voted 5 to 2 in favor of the motion.
“We’re very thankful—5-2, you only need four. It’s nice to have the extra one, and you never know which way these things are going to go walking into the room. But it feels really good right now,” said Andrew Diss, Chief Strategy Officer of Meruelo Gaming, the company that owns GSR.
“I feel relief, happiness. It’s been a long journey, but it’s going to be worth it, and I’m excited,” said Alex Meruelo, Owner of Meruelo Gaming.
The tax increment financing will abate some of the property taxes generated by the expansion, allowing those funds to be reinvested into the project.
However, the TIF is only based on the future increase in property taxes, it is not guaranteed. For example, if the expansion doesn’t occur or if property values don’t increase, the funding won’t materialize.
The first phase of the expansion includes a new 10,000-seat arena that will host Wolf Pack men’s basketball games, a community ice rink, a parking garage, and aqua golf.
Nevada Wolf Pack Director of Athletics Stephanie Rempe shared a statement on social media regarding the decision:
“This is a momentous day for northern Nevada and Nevada Athletics. I would like to express my gratitude to Chairperson Schieve and the Reno Redevelopment Agency Board, Alex Meruelo, The Meruelo Group, and all who put so much effort into making this transformative initiative a reality. This state-of-the-art facility will elevate Nevada Athletics and Nevada basketball to new heights and solidify Nevada’s college town as a big-time destination.”
Developers stated that they currently face a $145 million financial gap in the first phase of construction. The TIF reimbursement is expected to help cover approximately $60 million of that amount.
“That really illustrates the risk Mr. Meruelo is taking in this project because he is responsible for the rest, and the TIF doesn’t cover that full gap,” Diss said.
The City Council’s decision grants GSR a 90% TIF reimbursement through 2035. The projected tax incentives are expected to total $61.3 million, all of which will be reinvested into the expansion.
The remaining 10%, about $6.8 million, will go to the City of Reno’s Redevelopment Agency.
Presenters emphasized that the TIF does not pull from the city’s general fund or any other tax sources. They stated that there is no financial burden on the city, state, or taxpayers.
Shortly before the final vote, Meruelo made additional commitments during negotiations with the Council. He transferred the land for Fire Station 21 to the city and pledged 5% of the TIF reimbursement to support youth sports and recreation.
There remains some uncertainty due to fluctuations in the stock market and international tariffs, which could impact the project.
“Of course it’s a concern. It is risky, no question about it. But I believe in the city,” Meruelo said. “I believe in my advancement. I believe in GSR and the people here.”
Meruelo confirmed they will be breaking ground on phase one next month.
Future phases of the project are also looking to include a new hotel tower and workforce housing.