Billionaire Alex Meruelo and the Myth That GSR Needed Public Money
A decade of Meruelo’s acquisitions, capital projects, and political spending reveals the simple fact: the $61 million GSR TIF was meant to boost his return on investment.
Mar 02, 2026
Introduction to the Deal
Last May, the Reno City Council approved a $61 million tax incentive for GSR. This article explains the history and shows that Mereulo does not need the tax incentive, that Reno tax revenues are being diverted, that infrastructure is being neglected, and that the city budget is running a $25 million deficit.
The GSR Deal, the Donations, and the Politics of Development and Tax Give Aways
On February 24, GSR owner Alex Mereulo hosted a fundraiser for Councilmember Reese, who was a big promoter of the tax giveaway.
History of the GSR under Meruelo
Meruelo purchased the Grand Sierra Resort from the bank for approximately $42 million in early 2011, after the previous owners defaulted during the financial crisis.
Soon after the purchase, Meruelo initiated a multi-phase improvement program, committing around $25 million to renovate the casino floor, hotel lobby, guest rooms, and restaurants, modernizing surfaces and guest experiences.
Additional targeted investments continued in 2014, including upgrades to the sports book, a new spa, retail enhancements, and a $14 million nightclub, marking a shift from deferred maintenance to competitive amenities.
These early investments were aimed at stabilizing operations, improving guest satisfaction, and reestablishing the Grand Sierra brand. At this point, it was an operating concern and could have continued as it was.
The $1 Billion Expansion
In September 2023, Meruelo publicly unveiled an unprecedented $1 billion private capital investment plan — the largest in Reno’s history — shaping the resort’s long-term financial outlook. Key elements include:
A $435 million arena project, designed as a sports and entertainment venue that will host concerts and serve as the future home of the University of Nevada, Reno men’s basketball team. Groundbreaking for the Arena occurred in late 2025, with completion slated for 2027.
Future phases envision a new 800-room hotel tower to accommodate increased visitation and large-event traffic, as well as potential residential and entertainment components embedded into the resort’s footprint.
The overall redevelopment masterplan includes ancillary amenities, such as a community ice rink, an improved driving range, and walking paths, to complement the entertainment offerings.
Subsidizing the Competition? The GSR Arena and Reno's Risky Bet
The GSR Expansion will likely take revenues away from other Reno properties, including those owned by the City and funded by taxes, as this article explains.
Tax Incentives
When Meruelo unveiled his $1 billion Grand Sierra Resort expansion in September 2023, including a proposed arena for Nevada men’s basketball, he did not request public tax incentives, and apparently, they were not needed.
By late October 2024, the Grand Sierra Resort had publicly announced that it was seeking a substantial tax-increment financing package, reporting a $97 million TIF request from the City of Reno for the project.
This was likely the first formal public expression of support for tax abatement for the arena/expansion. Throughout early 2025, Meruelo’s team refined the TIF request as it worked through Reno’s redevelopment agency process — including lowering the ask.
On May 7–8, 2025, the Reno City Council voted to approve the TIF agreement, clearing about $61 million in tax increment financing in support of the Grand Sierra Resort expansion. Meruelo publicly acknowledged the financing during this vote.
Why TIF is Bad
TIF is ultimately bad for a city and for taxpayers because it gives money to the developer that is needed to pay for the added strain on infrastructure that is brought on by the GSR expansion, including road maintenance, fire services, police services, water, sewer, and everything else that it takes to run a city.
GSR: Reno’s $61 Million Tax Giveaway to a Billionaire
See this article for details on how TIF diverts revenue from required infrastructure.
Mereulo’s Investment History
Here is a Timeline of major investments by Meruelo:
July 23, 1991 – La Pizza Loca expansion era; Meruelo projected 1991 sales of $15 million.
Dec 1998 – La Pizza Loca Inc. reportedly offered to buy Chicago Pizza & Brewery at about $12.8 million.
2009 – Meruelo Group acquired Fuji Food Products (pre-packaged sushi). Price not announced in contemporaneous coverage.
May 2018 - SLS Las Vegas (formerly Sahara Las Vegas). Purchase price not publicly disclosed. Mereulo is renovating the Sahara at a cost of over $100 million.
June 2018 - Colom Island, Spain. Purchased a private island for approximately $3 million. His intentions for this island are not known so far.
June 2019 - the Arizona Coyotes - He purchased a controlling interest for approximately $300 million.
In 2021 - Paradise Valley, Arizona. He purchased a 22,000-sq-ft residence for $12.1 million.
April 2024 - Arizona Coyotes franchise sale back to the NHL. The transaction was valued at $1.2 billion. Reports indicate roughly $1.0 billion returned to Meruelo.
It is clear that Mereulo was not short of cash and, in fact, was spending lavishly on his own lifestyle.
Reno’s Structural Deficit and the Culture That Created It: $24 Million in the Hole.
Reno didn’t get into a financial mess by accident. It has been a long time coming. Tax giveaways make the situation worse.
Political involvement
Mereulo is not apolitical. He donates often. His donations are difficult to find, as he has many entities to use for donating.
Since 2016, Alex Meruelo has donated $490,727 to 52 political candidates and organizations, including these and others:
Aaron Ford, Adam Laxalt, Alexis Hill, Andrew Diss, Angela Taylor, Clara Andriola, Oscar Delgado, Devon Reese, Francisco Aguilar, Hillary Schieve, Joseph Lombardo, Kathleen Taylor, Kathleen Sigurdson, Lisa Krasner, Marialuz Garcia, Marsha Berkbigler, Miguel Martinez, Neoma Jardon, Nicole Cannizzaro, Steve Sisolak, Teresa Benitez-Thompson.
he donated through 12 different entities, including:
Alex Meruelo, Alex Meruelo Living Trust, Grand Sierra Resort, Meruelo Capital Investments, Inc., Meruelo Enterprises Inc., Meruelo Group, LLC, Meruelo Media Holdings, Meruelo Media, LLC, Meruelo Real Property Corp, Meruelo Television, LLC., The Meruelo Group, The Sahara Las Vegas.
Conclusion about Investments
We were sold on the idea that the GSR project would only work if the tax subsidy were granted. It is clear that Mereulo has considerable funds available and does not need the TIF to expand the GSR. The purpose of the TIF was to increase Mereulo’s return on investment from the GSR expansion. This is being done at the expense of Reno taxpayers, during a time when the City is running a $25 million budget deficit.
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