Reno Casino Owner Asks City for Financial Assistance to Build Sports Arena

October 29, 2024

The proprietor of Reno’s Grand Sierra Resort is requesting financial support from the city to construct a sports arena. 

In last week's meetings of the city’s Redevelopment Agency Board and City Council, members of the Meruelo Group, the parent company of the Grand Sierra situated southeast of downtown Reno, unveiled their funding proposal for building a 10,500-seat arena. 

The Meruelo Group, led by Cuban-American billionaire Alex Meruelo, whose real estate holdings feature the Sahara on the Las Vegas Strip, is requesting $97 million in city funding via a tax increment financing (TIF) proposal. 

Andrew Diss, the chief strategy officer of Meruelo, informed the redevelopment committee that an arena at the casino resort would advantage Reno, deeming the $97 million tax allocation a wise investment for the city’s economic prospects. The firm predicts that building the $400 million arena will generate 5,300 construction roles and 65 stable full-time positions. 

$1 billion Development 

The suggested arena for the Grand Sierra Resort is expected to serve as the venue for the University of Nevada’s men’s basketball team, and potentially, a minor league hockey team (Meruelo also owns the NHL’s Arizona Coyotes). 

Meruelo is dedicated to constructing a new arena for the Wolf Pack men's basketball team and insists that the university will not spend a cent on the new facility. The women’s basketball team of Nevada will continue to play at the Lawlor Events Center. 

The $400 million venue is merely a portion of the Meruelo Group's $1 billion development strategy. In addition to the indoor sports complex, the plan features a new hotel tower offering 865 rooms, 300 affordable housing units, an ice rink, and a parking garage with 2,400 spaces. 

Bryan McArdle, the city’s manager for revitalization, informed the City Council that staff members at the Redevelopment Agency found that Meruelo’s TIF application met the essential criteria to move forward with a “review and negotiation of a participation agreement.”

"The project is anticipated to serve as a significant economic driver for the city, promoting tourism, enhancing the local entertainment scene, and acting as a centerpiece for redevelopment while adding workforce housing,” McArdle wrote in conclusion.

The Reno City Council decided to approve the hiring of an outside party to perform an extensive evaluation of the project’s scope. The hired consultant will be responsible for conducting an independent evaluation of the project’s feasibility and financial forecasts, assessing economic and regional effects, and suggesting terms for the public-private partnership and participation agreement. 

If granted the $97 million, the Meruelo Group intends to commence construction on the arena in the spring and launch the venue prior to the Nevada men's basketball team starting their 2027 regular season. The remaining elements of the project are expected to be finished by 2035. 

4-1-1 about TIFs 

As stated by the Lincoln Institute of Land Policy, a nonprofit research organization in Massachusetts that aims to “enhance quality of life via the efficient management, taxation, and use of land,” tax increment financing enables local authorities to foster economic growth by designating property tax income from anticipated rises in assessed values. 

TIFs are most effective in distressed areas, as property values often rise when investments occur. This is why Reno Councilor Jenny Brekhus (Ward 1) opposed the Grand Sierra arena application, as the resort is not situated in a distressed area. 

Diss stated that the suggested expansion of the casino resort would bring advantages to every area of the city. 

“Over the course of the next 10 years, [Meruelo] intends to invest approximately $1 billion into a multiphased development encompassing sports and entertainment, retail, food and beverage, workforce housing, and most importantly — jobs. This will be the largest redevelopment project in the history of Reno,” Diss said.