Grand Sierra Secures Property Tax Reimbursements for $435 Million Reno Arena

Billionaire Alex Meruelo has obtained property tax rebates, which he claims are essential for enabling him to build a $435 million indoor sports arena at his Grand Sierra Resort in Reno. 

As part of a $1 billion, multi-phase expansion and redevelopment of the Downtown Reno area, the Meruelo Group requested property tax rebates from the city in return for establishing a top-tier multiuse indoor sports complex in “The Biggest Little City in the World.” In addition to organizing significant concerts and events, Meruelo has committed to making the 10,000-seat arena the home for the University of Nevada, Reno’s men’s basketball team. 

The Reno Redevelopment Agency Board voted 5-2 last week to endorse a reduced Tax Increment Financing (TIF) request from Meruelo. The vote allowed the city to refund as much as $61.29 million in property taxes to the Meruelo Group until 2035. 

Brian Sandoval, the former two-term Republican governor of Nevada who took on the role of president at the University of Nevada, Reno, in October 2020, praised the taxpayer-supported terms. Meruelo first requested $97 million in city tax refunds.

"To be competitive in college sports, we have to have a venue and the ability to generate revenue. I’m not into competing — I’m into winning,” Sandoval said ahead of the Reno Redevelopment Agency Board vote. “The GSR project checks every single box.”

Since 2017, the Wolfpack men's basketball team has made it to the NCAA Division I Men’s Basketball Tournament, known as March Madness, on five occasions, but last advanced to the Sweet Sixteen in 2018. 

Expansion of Grand Sierra Resort 

The TIF agreement will support Meruelo in starting the Grand Sierra Resort Reno Arena and an additional $350.7 million investment to introduce an “aqua driving range,” a community indoor ice rink, and a parking garage for 2,400 vehicles to the resort casino. 

To enhance his TIF application, Meruelo consented to transfer the property he leases for Fire Station 21 to the city and dedicate 5% of his property tax refunds to youth sports in the city. Meruelo stated he listened to community members and stakeholders, considering their numerous concerns. 

“I’ve heard from every single one of you. It’s impacted me,” Meruelo said at the Redevelopment Agency meeting.

Grand Sierra's rivals, such as Eldorado, Circus Circus, Silver Legacy, Peppermill, Atlantis, Boomtown, and Nugget, challenged the TIF approval. The casino coalition expressed “serious concerns” regarding whether financing a private firm is an “acceptable use of TIF according to Nevada law.” 

Nevada NRS Chapter 279 permits Tax Increment Financing for initiatives in a “blighted area” where the construction or development will advantage “all residents and property owners” within the community. 

No Economic Effect on City 

Local officials stated that the property tax rebates are solely for a development that wouldn't occur without the TIF, indicating that these reimbursements pose no financial risk to the city's budget. City Revitalization Manager Bryan McArdle stated that Reno will be repaying property tax funds to Meruelo until 2035, funds that the city wouldn’t have received if the TIF had not been approved initially. 

Reno is undergoing a transformation. In addition to GSR, Jacobs Entertainment is still investing in the renovation of its J Resort and the Reno Neon Line. In March, it was announced that the previous Harrah's would be redeveloped as a mixed-use space.