The massive project promises to transform Reno’s gambling landscape, but its exorbitant cost and potential social impact have raised some concerns
The Reno City Council has granted preliminary approval toward possibly providing financial support for the Grand Sierra Resort’s (GSR) ambitious arena project. This decision will allow for a third-party review to gather more information and evaluate the project’s impact. Although the city has not allocated any funds yet, and the final decision is pending, the vote allows city staff to explore potential avenues for collaboration.
The Project Could Be a Significant Boon for Reno
GSR’s proposed $400 million arena will host the University of Nevada, Reno men’s basketball team. The project includes a state-of-the-art 10,000-seat sports and concert facility. It will feature shopping outlets, an array of dining options, premium suites, and other features in addition to sports facilities. Construction should start in spring 2025, and the arena could open by fall 2027.
To fund the development, GSR has requested $97 million in tax increment financing (TIF) — 9.7% of the project’s estimated $1 billion cost. TIF would effectively divert some of the future property tax revenue increases the project would bring, reinvesting them back into the development. Reno mayor Hillary Schieve was adamant that the city was not directly handing money to developers.
We don’t hand them over a check.
Hillary Schieve, Reno mayor
In addition to potential tax revenue, the Grand Sierra Resort promises to create 5,300 construction jobs and 65 permanent positions post-completion. The city estimates it could bring in $4.5 million annually in sales tax and an additional $3.8 million in lodging tax revenue. Furthermore, the planned arena could host various high-profile tournaments, bolstering tourism and benefiting the surrounding area.
GSR Promises That All Funding Will Remain Transparent
Despite the potential gains for the city, not all council members agreed to the tax increment plan. Councilmember Jenny Brekhus, who voted against moving the proposal forward, said she was concerned that the city should use its limited resources to benefit disadvantaged communities rather than focusing on attractive locations like the GSR.
Addressing these reservations, GSR released an official statement confirming that it is not asking the city to issue bonds, mitigating the risk if the project stalls. The company noted that the project’s funding was fully transparent and that neither the University of Nevada nor other property owners would be asked to contribute to the GSR development.
The City of Reno has taken a thoughtful and measured approach to improving the RDA process.
GSR statement
As GSR and the City of Reno continue their dialogue, the final decision on whether to proceed with the tax increment financing will depend on the newly commissioned independent analysis. Such high-profile projects can significantly influence local infrastructure and service demands in addition to their social impact, justifying Reno’s caution.
