$1 Billion Arena Project to Kick Off at Reno Casino Resort

The Grand Sierra Resort in Reno is set to break ground on its $1 billion arena project four months after it secured a controversial tax increment financing deal. The GSR announced a groundbreaking ceremony will be held Tuesday, Sept. 30, in the northwest parking lot and include “a first look at what’s to come.” The event is not open to the public.

“This project will be a transformative addition to our resort, the University of Nevada and the Northern Nevada region,” the GSR said in a statement about the groundbreaking.

The GSR filed a new construction permit with the city of Reno in July for the project, which will be done in multiple phases. The initial work represents $189 million of the estimated $786 million for the first phase of the project.

Details listed in the permit include a 10,000-seat capacity arena, community ice rink and food and beverage booths. Other amenities include a 2,400-spot parking garage.

The groundbreaking follows the Reno Redevelopment Agency's approval in May of GSR's request for tax increment financing to help fund the project.

Tax-increment financing is a method of funding projects where future increases in tax revenue are redirected back to private developers. Under Nevada law, these projects must be built in designated redevelopment areas that are suffering from blight.

According to the contract, GSR will be reimbursed 90% of its property tax while the TIF is in effect, and the redevelopment agency would keep 10% of the property taxes. The agreement sunsets in 2035.

As part of the deal, GSR owner Alex Meruelo said he would also give the lease to the property for Fire Station 21 to the city of Reno and give an additional 5% of the 90% property tax reimbursement earnings to youth sports recreation facilities.

Overall, GSR would be reimbursed an estimated $61.3 million, and the redevelopment agency would keep roughly $6.8 million in property taxes through 2035.

The use of TIF for the project has been controversial, particularly since GSR initially stated that it will not use public funding when it announced the arena back in 2023.

“I’m just wondering why the city of Reno should use our public funds for a private business?” Council Member Meghan Ebert asked in May. “I’m just not exactly sure why this particular investment should make sense to us, knowing that our downtown is in the shape that it is.”

One of the biggest supporters of the project is the University of Nevada, Reno. 

In addition to hosting live events, the GSR arena will also serve as the venue for the Nevada Wolf Pack men’s basketball team’s home games.

“To be competitive in college sports, we have to have a venue and the ability to generate revenue, and I’m not into competing, I’m into winning,” UNR President Brian Sandoval said at the May redevelopment meeting. “(The GSR project) checks every single box.”

The GSR Arena is expected to open in late summer of 2027 with the Nevada men's basketball games played in the arena in fall/winter 2027.