The Grand Sierra Resort in Reno, Nevada, will soon begin construction on a $1 billion arena project, just months after winning approval for a contentious tax financing package. A groundbreaking ceremony is scheduled for Tuesday, September 30, at the resort’s northwest parking lot, where guests will get “a first look at what’s to come.” The event will not be open to the general public.
In a statement, the resort declared, “This project will be a transformative addition to our resort, the University of Nevada and the Northern Nevada region.”
Arena Details and Expansion Plans
According to the construction permit filed with the city in July, the first phase of the development carries an estimated price tag of $786 million, with the initial stage valued at $189 million. Plans call for a 10,000-seat multipurpose arena, complete with suites, hospitality clubs, food and beverage stands, and a year-round community ice skating rink. A 2,400-space parking garage is also part of the initial design.
Beyond the arena itself, the expansion encompasses an 800-room hotel tower and a golf-related addition, including a walking path at the Grand Bay driving range. Altogether, the 300,000-square-foot venue is intended to serve both as a concert and sports facility, with an eye on boosting tourism in the region. Resort officials have described it as the largest private capital investment in Reno’s history.
The arena’s central role will be to host the University of Nevada, Reno’s men’s basketball team. The Wolf Pack is expected to play home games there starting in the fall and winter of 2027, following the planned summer opening of the venue. “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 told city officials at a May redevelopment meeting. “(The GSR project) checks every single box.”
Financing Through Tax Increment Deal
The project’s funding was secured earlier in the year through a tax increment financing (TIF) agreement approved by the Reno Redevelopment Agency. The deal allows Grand Sierra Resort to be reimbursed for 90% of its property taxes until 2035, while the agency retains the remaining 10%. In total, the resort stands to recover about $61.3 million, while the city collects roughly $6.8 million over the life of the agreement.
Under Nevada law, TIF projects must be located in redevelopment zones suffering from blight, with the expectation that redirected tax revenues spur private investment. However, this arrangement has not been without criticism.
According to Reno Gazette Journal, at the City Council’s May vote, Council Member Meghan Ebert voiced her concern, asking, “I’m just wondering why the city of Reno should use our public funds for a private business? 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.”
When the arena project was first announced in 2023, GSR stated that no public funds would be involved, a promise that has since become a point of contention.
Still, the resort’s ownership agreed to make concessions as part of the financing package. Alex Meruelo, GSR’s owner, pledged to transfer the lease for Fire Station 21 to the city and direct 5% of the property tax reimbursements earmarked for the resort toward youth sports and recreational facilities.
Construction on the $1 billion project officially begins on September 30, and completion is projected for late summer 2027. Once open, the arena will add a major attraction near downtown Reno, positioned at the intersection of Interstate 80 and Highway 395. With the combination of sports, concerts, hospitality facilities, and university partnerships, the development is expected to reshape the city’s entertainment landscape.
