What’s Happening
A casino resort in Reno wants to use your tax dollars for its expansion, and a new bill might help make it happen.
The Grand Sierra Resort announced plans for a $1 billion project including a new sports arena for University of Nevada basketball. Though owner Alex Meruelo initially said the arena “will not cost the university one dollar,” his company is now seeking $97 million in public money from the City of Reno through tax increment financing.
At the same time, Senate Bill 401, introduced by Senator Edgar Flores on March 17, 2025, would extend certain redevelopment plans from 30 years to 50 years. The bill applies only to Reno, described as “a city whose population is 150,000 or more located in a county whose population is 100,000 or more but less than 700,000.”
This matters because the Grand Sierra is seeking money through tax increment financing (TIF), which redirects future property tax dollars to help pay for development. The redevelopment district including Grand Sierra was created in 2005 and would expire in 2035 without this new bill.
The Case Against Public Funding
Many conservatives see this as government overreach into the free market. Tax increment financing means money that would fund essential services gets redirected to private businesses instead.
A coalition of competing Reno casino operators opposes the plan. In a letter to the city council, they argued that TIF funds should be reserved for truly blighted areas, not prosperous businesses like Grand Sierra Resort.
The arena portion of this massive project is slated to begin in spring 2025 with completion of the entire $1 billion development expected by fall 2035. This timeline explains why the casino wants the redevelopment district extended another 20 years past its current 2035 expiration date.
This request comes as Reno faces a $3.7 million budget shortfall. Critics ask: Should taxpayers cover expansion costs for a profitable casino when the city can’t balance its own budget?
The Case For Public Funding
Supporters say these public investments create jobs and boost economic growth. They point to successful Reno projects built with TIF funding, including Greater Nevada Field (home of the Reno Aces baseball team) and the National Bowling Stadium.
Mayor Hillary Schieve (Nonpartisan) has said:
“TIF is one of our tools [and] we’re certainly looking at [it]. We need to stay competitive.”
According to third-party analysis by Hunden Consultants, the full $1 billion development would generate $349.1 million in incremental property tax over the next 30 years, even with the requested $89.7 million abatement. The same analysis suggests the project would have a $4 billion economic impact and support 671 jobs.
Senator Flores believes the pandemic justifies extending the timeline. “We just want to look at what was out there now and allow them to utilize the full breadth of its timeline,” he said, noting that COVID slowed construction and development timelines across the board.
The Numbers That Matter
The $97 million in public money would fund nearly 10% of the total project cost. Under current plans, TIF funding would reduce future property taxes by $89.7 million over the life of the agreement.
If SB401 passes, it would extend TIF funding in Reno from 30 to 50 years, allowing projects like Grand Sierra to receive public support until 2055. The proposed arena would seat 10,000 people and host both Nevada men’s basketball games and potentially a minor-league hockey team.
What Happens Next
The Reno City Council meets regularly at City Hall, 1 East First Street, with meetings beginning at 10 a.m. You can attend in person or watch live online at Reno.Gov/Meetings.
The legislative process for SB401 is moving forward, with developers saying it needs approval “in the next few weeks” to keep the project on schedule for completion by 2035.
What You Can Do
Whether you support or oppose this project:
- Contact your state legislators about SB401 and share your views.
- Attend upcoming Reno City Council meetings to learn more or speak during public comment.
- Submit online public comments at Reno.Gov/PublicComment.
This debate highlights the tensions between government involvement in economic development and free market principles. How communities invest tax dollars today shapes their economic landscape for decades to come.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
