- Grand Sierra Resort has broken ground on its $435 million sports arena
- The arena is the first phase of GSR’s $1 billion expansion
After years of planning, Grand Sierra Resort has broken ground on the property’s $1 billion expansion.
GSR, owned and operated by the Meruelo Group, held a ceremonial groundbreaking on Tuesday. The $1 billion undertaking, which is being partially supported by the city through a tax incentive, starts with the construction of the $435 million sports arena and community ice rink.
Dubbed the Reno Arena, the facility will become home to the University of Nevada, Reno’s men’s basketball team, and ideally, host major events like marquee headlining concerts and NCAA March Madness games.
Billionaire Alex Meruelo acquired the Grand Sierra in 2011 for $42 million. He’s since poured more than $400 million into updating the property.
Reno Renovator
Meruelo, who also owns the Sahara on the Las Vegas Strip, is optimistic that Reno’s best days are still to come. He isn’t alone. Jacobs Entertainment is also investing heavily in the renovation of the Sands Regency and its so-called Neon Lion development.
On Tuesday, Meruelo pledged $1 million to the Wolfpack’s men’s and women’s hoops programs. He’s expecting a big return.
I want a national title,” Meruelo said to the crowd at the arena groundbreaking.
“This is really a historic moment for our community, for Northern Nevada, for the University of Nevada,” said Brian Sandoval, the former governor who is today the president of the University of Nevada, Reno.
“I grew up here. I went to grade school, high school, and university here. Usually, projects like these are what you see happening in other places,” Sandoval continued. “I think this community should be really excited about the fact that we’re going to have first-class sporting experiences, concerts, and presentations. It’s happening right here where we’re standing.”
Following the arena, Meruelo plans to spend $600 million on building a new hotel tower at the Grand Sierra Resort. Other projects in the works include an “aqua driving range” where golfers hit at floating island greens, additional retail space, and affordable workforce housing.
GSR currently has about 2,000 hotel rooms. The casino space features 1,400 slot machines and 45 live-dealer table games.
Tax Incentives
Meruelo’s plans for Reno aren’t without controversy. In May, the Reno Redevelopment Agency Board voted 5-2 in favor of granting him tax increment financing (TIF) that will return nearly $61.3 million in property taxes to Meruelo.
TIF arrangements are public financing tools to stimulate economic development. City officials say the deal with Meruelo costs taxpayers nothing, as the arena and expansion likely would not have come to fruition without the TIF, meaning that property tax revenue would not have been realized.
Meruelo initially sought $100 million in tax rebates. The city agreed to a lower amount, with the terms to cease in 2035.
“I didn’t get everything I wanted,” Meruelo told the Reno Gazette-Journal. “But you know what? Neither did they. It is truly a compromise, and that’s what this country is about.”
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