The City of Reno created the Reno Redevelopment Agency in 1983 as a tool to spur development of projects that otherwise would not get built that in turn provide tax benefits to the city, improve the quality of life for our citizens, and create value. This is achieved through property tax increment, which has successfully been used to help construct several developments in downtown Reno over the past few decades, and has been a significant tool for generating new investment in our region.

Until recently, the City of Reno did not have a standardized process for evaluating development projects within the Reno Development Agency (RDA) to assess their benefits, the developer’s capacity to complete the project, and their overall impact on the city. On Aug. 14, the Reno City Council, acting as the Reno Redevelopment Agency Board, adopted a comprehensive new application process as part of the city’s efforts to enhance due diligence for RDA projects. This marks an important step toward increasing transparency and ensuring that all applications are thoroughly reviewed before being considered by the board. Additionally, the City Council reactivated the Redevelopment Agency Advisory Board (RAAB), bringing in Reno residents with technical expertise to further support the vetting process. Following the adoption of this new framework, GSR has submitted an application to begin the official review.

Several points should be clarified for the public as the review process begins:

• GSR is not asking the City of Reno for any general fund revenues.
• The city is not being asked to issue bonds for the project, so there is no financial risk to the city if the project isn’t completed as planned. The Meruelo Group remains fully committed to seeing the completion of the construction as planned.
• No other property owners are being asked to contribute to the GSR development.
• RDA funds are generated through newly generated property value, so if the GSR doesn’t invest in any projects like the arena, lake improvements or workforce housing, then there is no corresponding increase in property value, and thus no new increment to reinvest into the project.
• While the RDA’s have existed in Reno for the past 41 years, the lifespan of RDA 2 expires in 2035, so this is a finite incentive program.

Since the GSR is the first applicant under this newly transparent RDA program, and given the size of Mr. Meruelo’s planned investment, we understand that it will garner a lot of attention. It is important for the public to have a clear understanding of how the process works, as the RDA’s operations have undergone significant improvements recently.

The City of Reno has taken a thoughtful and measured approach to improving the RDA process, and its efforts to implement meaningful reforms are commendable.

"We are making tremendous progress on the design of the arena and amenities and continue to work closely with Gensler and the University of Nevada on all aspects of the arena," said Shannon Keel, General Manager of Grand Sierra Resort. "We couldn't be more excited to positively impact our region's sports and entertainment landscape."

The new arena, with a seating capacity exceeding 10,000, is set to become a premier destination for concerts, special events, basketball games and other sports events in Northern Nevada. The state-of-the-art facility will feature modern amenities including luxury suites, premium hospitality clubs, and advanced technological integrations to elevate the fan experience.

"This world-class sports and entertainment arena will create unmatched value for Reno, fostering community through engaging experiences for a wide range of visitors," said Andy Cohen, Global Co-Chair of Gensler. "By seamlessly integrating into the existing casino and resort complex, the new arena will activate a truly 24/7 entertainment lifestyle, enhancing the lasting legacy of a vibrant city. We are thrilled to partner with Grand Sierra Resort and the Meruelo Group to bring this vision to life."

As part of a strategic partnership with the University of Nevada, the arena is poised to become the future home of Nevada Men's basketball. This collaboration aims to provide a world-class venue for the team, enhancing the game-day experience for fans and players alike.

"The team that Alex Meruelo has assembled to create a transformative arena in Northern Nevada has been outstanding to work with," said Stephanie Rempe, Athletic Director for the University of Nevada. "We are grateful for their collaboration and commitment to making this arena a very special home for our men's basketball team. It is an exciting time for Wolf Pack Athletics and we could not be more appreciative of the progress that has been made and eager for the future! This will be an absolute game changer for our basketball program and the community of Northern Nevada."

This milestone is part of GSR's historic $1 billion private capital investment announced last fall. The comprehensive plan includes significant enhancements to the existing 140-acre property, aiming to transform GSR into a premier destination for community, sports, and entertainment over the next decade.

The video released today showcases the envisioned enhancements and architectural breakthroughs that will define the new arena. The addition of a satellite ice rink and a fan zone aims to create a vibrant and engaging atmosphere for visitors year-round.

The centerpiece of this visionary project is a cutting-edge arena, designed to host various events such as concerts, special events, basketball games, and other sports, with a capacity exceeding 10,000 seats. The arena will span approximately 300,000 square feet and offer contemporary amenities, including suites and premium hospitality clubs.

GSR Owner Alex Meruelo and University of Nevada, Reno President Brian Sandoval also announced the exploration of a partnership with the Nevada men's basketball team, which could make the arena their home upon completion of construction.

"The vision is to transform GSR into a destination where community, sports and entertainment come together," said Meruelo.

"The University of Nevada, Reno is excited to explore the opportunity to partner with Alex Meruelo and Grand Sierra Resort as they develop a state-of-the-art arena and entertainment district that is unprecedented in Northern Nevada," said Sandoval. "The new arena will include amenities that create a fan and game experience that are second to none."

Expanding beyond the arena, the plans encompass a comprehensive beautification of Grand Bay. This will include the creation of an active golf facility and entertainment destination, a scenic walking path and a captivating water show.

In response to the anticipated surge in demand, plans are also in place for an 800-room hotel tower. One or more parking garages will be constructed to ensure seamless access to these new facilities.

Recognizing the need to support the growing workforce essential to the success of these ambitious projects, the initiative will include the creation and construction of approximately 300 affordable riverfront residential units.

"This is an incredible and historic investment by Mr. Meruelo and a true game changer for our community," said Reno Mayor Hillary Schieve. "It's a massive win for our citizens, a win for the University of Nevada and a win for tourism. Thank you Mr. Meruelo for your vision and faith in our great community."

"The precipice of an extraordinary transformation is upon us," said Meruelo. "This will not only redefine Grand Sierra Resort but also elevate Reno to new heights in the realm of entertainment and sports. We recognize and value the community's support and enthusiasm as we commence this journey together."