Grand Sierra Resort Breaks Ground on $1 Billion Expansion With Reno Arena

Grand Sierra Resort Breaks Ground on $1 Billion Expansion With Reno Arena

Grand Sierra Resort has begun construction on its $1 billion expansion after years of planning.

On Tuesday, GSR, which is owned and run by the Meruelo Group, performed a formal groundbreaking. The $435 million sports arena and community ice rink are the first projects in the $1 billion project, which is partially funded by the city through a tax incentive.

Known as the Reno Arena, it will house the University of Nevada, Reno men's basketball team and, ideally, significant events like NCAA March Madness games and headline concerts.

In 2011, billionaire Alex Meruelo paid $42 million for the Grand Sierra. Since then, he has spent about $400 million renovating the home.

Reno's best days are yet ahead, according to Reno Renovator Meruelo, who also owns the Sahara on the Las Vegas Strip. He is not by himself. Additionally, Jacobs Entertainment is making significant investments in the Neon Lion development and renovation of the Sands Regency.

Meruelo promised the Wolfpack's men's and women's basketball teams $1 million on Tuesday. He anticipates a significant 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.”

Meruelo intends to develop a new hotel tower at the Grand Sierra Resort for $600 million after the arena. A "aqua driving range" with floating island greens for golfers, more shop space, and reasonably priced workforce housing are among the other projects in development.

At the moment, GSR has roughly 2,000 hotel rooms. There are 45 live-dealer table games and 1,400 slot machines in the casino area.

Tax Benefits

There is some debate around Meruelo's intentions for Reno. The Reno Redevelopment Agency Board decided 5-2 in May to provide him tax increment financing (TIF), which will reimburse Meruelo for around $61.3 million in property taxes.

TIF agreements are instruments of public funding that promote economic growth. According to city authorities, there is no cost to taxpayers from the agreement with Meruelo because the arena and expansion would not have been possible without the TIF, which would have prevented the realization of property tax revenue.

At first, Meruelo requested tax refunds totaling $100 million. A reduced sum was agreed upon by the city, and the terms would expire 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.”