Jacobs reverses course on Bonanza Inn rehab, now intends to demolish aging building

RENO, Nev. (News 4 & Fox 11) — Jacobs Entertainment, the company behind the downtown Reno ‘Neon Line’ corridor along 4th. St., announced that it now intends to demolish the dilapidated Bonanza Inn building.

CEO Jeff Jacobs previously said he planned to refurbish the building into 59 affordable housing units, even calling that project ‘The Breeze,’ but confirmed the change of plans Thursday.

A statement from the company cited the ‘recent increases in construction costs’ as the reason:

Given the recent increases in construction costs, renovation is no longer a financially viable pathway forward. As a result, Jacobs Entertainment is filing a demolition permit to allow for future construction with a larger scope than initially planned.

The new plans and the timeline for the project on that site were not announced.

The Reno Housing Authority attempted to purchase the property in 2022 but was unsuccessful. Jacobs initially said he would not be interested in the Bonanza Inn, but ended up purchasing the 215 W. 4th St. property at auction for $3 million in early 2024.

In addition to the Bonanza Inn update, Jacobs also announced that it is submitting building permits to start construction on the first 4 youth sports fields. It comes as the company announced this fall its intentions to build 12 total fields over the next 6 years and create a new ‘traveling youth sports initiative’ called the Downtown Reno Amateur Sports Association.

“These new fields are going to help continue to transform downtown Reno,” said Jonathan Boulware, vice president of Nevada operations for Jacobs Entertainment. “We’re very excited to help bring youth sports to downtown Reno.”

This is a developing story. Check back with News 4-Fox 11 for updates.