Debate over arena funding headed to Councilmembers

On Monday, the Reno Redevelopment Agency Advisory Board (RAAB) tackled the debate over public funding for a $1 billion Grand Sierra Resort (GSR) redevelopment, spotlighting a 10,000-seat arena for Nevada’s men’s basketball team and potentially a minor-league hockey franchise. With a 5-2 vote, the board advanced the project to the Reno Redevelopment Board for a May 7 review, but doubts about tax-increment financing (TIF) cast a shadow.

The project’s price tag has surged 20% to $786 million, with the arena alone now costing $435 million. GSR slashed its TIF request from $89.7 million to $68.1 million, tied to TIF’s 2035 expiration. Andrew Diss of Meruelo Gaming blamed Trump-era tariffs for escalating costs, insisting TIF is “essential.” Yet, board members Michael Pagni and Nettie Oliverio challenged GSR’s eligibility for TIF, reserved for blighted areas, and questioned the project’s economic payoff.

The City of Reno’s consultant, Hunden Partners, argued the arena meets the “but for” test, requiring public funds to move forward, and projected $2.6 billion in new spending by 2055. However, the Coalition—a group of rival northern Nevada resorts—disputed this, citing a study that pegs the economic impact at just $389 million, dismissing arena-driven growth as overhyped. Fears also surfaced about siphoning revenue from downtown and the city-owned, RSCVA-managed Reno Events Center.

The RAAB examined three TIF options, including up to 100% property-tax reimbursement through 2035, but members pushed for more creative alternatives. Despite the arena’s allure—95 annual events, 553,900 attendees, and boosts for local hockey and Nevada athletics—uncertainty persists. RAAB Chairman Paul Klein proposed recommending the project to the Reno Redevelopment Board without locking it into the presented options, a motion the board endorsed.

Will Reno roll the dice on this glitzy arena, or will soaring costs and skepticism kill the dream? The May 7 vote holds the answer.