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

At the Redevelopment Agency Board and City Council meetings in the city last week, agents from the Meruelo Group, the parent organization of the Grand Sierra situated southeast of downtown Reno, introduced their request for funding to build a 10,500-seat arena. 

The Meruelo Group, led by Cuban-American billionaire Alex Meruelo, owner of a real estate empire that features the Sahara on the Las Vegas Strip, is pursuing $97 million in city funding via a tax increment financing (TIF) strategy. 

Andrew Diss, Meruelo's chief strategy officer, informed the redevelopment committee that a venue at the casino resort would advantage Reno, deeming the $97 million tax allocation a wise investment for the city’s economic prospects. The company predicts that building the $400 million arena would generate 5,300 construction jobs and lead to 65 permanent full-time positions. 

$1 Billion Development 

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

Meruelo is dedicated to establishing a new arena for the Wolf Pack men’s basketball team and asserts that the school will not spend a cent on the new facilities. The women’s basketball team in Nevada would continue at the Lawlor Events Center. 

The $400 million venue is merely a segment of the Meruelo Group’s $1 billion growth strategy. In addition to the indoor sports facility, the project features a new hotel with 865 rooms, 300 affordable housing units, an ice skating rink, and a parking garage with 2,400 spaces. 

Bryan McArdle, the revitalization manager for the city, informed the City Council that the Redevelopment Agency staff concluded that the TIF application submitted by Meruelo fulfilled the required 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 external party to perform a detailed assessment of the project’s scope. The hired consultant will be responsible for conducting an impartial evaluation of the project's viability and financial forecasts, economic and local effects, and suggesting conditions for the public-private partnership and participation agreement. 

If granted the $97 million, the Meruelo Group intends to start construction on the arena in the spring and launch the facility ahead of the Nevada men’s basketball team beginning their 2027 regular season. The remaining parts 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 think tank located in Massachusetts aimed at “enhancing quality of life through the efficient use, taxation, and management of land,” tax increment financing enables local governments to encourage economic growth by designating property tax revenue from anticipated rises in assessed values. 

TIFs generally function most effectively in distressed regions, as property values usually rise when investments occur. That’s why Reno Councilor Jenny Brekhus (Ward 1) opposed the Grand Sierra arena proposal since the resort is not located in a run-down area. 

Diss mentioned that the planned expansion of the casino resort would be advantageous for all areas 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.