GSR: Reno’s $61 Million Tax Giveaway
Deal to Billionaire Developer Hurts Taxpayers and the City’s Future
The Reno City Council has approved a $61 million Tax Increment Financing (TIF) deal for the Grand Sierra Resort (GSR) expansion—a deal that hands an out-of-town billionaire investor millions in future tax revenue while burdening Reno’s taxpayers and city services.
90% of the future property taxes generated by this development will be funneled back to GSR under the TIF agreement—money that should go to funding city services and infrastructure maintenance.
Since the GSR is willing and able to pay the up-front construction costs without TIF it seems that the GSR intends to use TIF for ongoing operational costs. This is not an appropriate use of TIF under Nevada law.
What the City Gets:
• $6.8 million over 10 years. That’s less than $700,000 per year—a drop in the bucket for a city with mounting infrastructure needs.
• $3.4 million to a youth sports fund—again, a one-time sum dwarfed by the $61 million tax giveaway.
• Land for a fire station valued at $4–5 million—but the city already has a station there and was paying below-market rent. The so-called “savings” of $30,000 per year is negligible.
The Big Problem: Lost Revenue, Higher Burdens
Supporters of the project claim that this tax money wouldn’t exist without the project, but this ignores the purpose of property tax: to fund public services. The GSR expansion will increase strain on roads, fire protection, and other city services—without paying its share. This forces Reno to make up the lost revenue elsewhere, likely through tax hikes or service cuts.
Reno already faces a $26 million budget deficit, and there are active county proposals to raise property taxes. On top of that, the city is carrying nearly $1 billion in debt from past TIF-funded projects like the Railroad Trench, Cabela’s, and city-owned venues such as the Reno Events Center, The Reno Ballroom and National Bowling Stadium—none of which delivered the promised economic revitalization.
Low-Wage Jobs, Temporary Boosts
Proponents of the GSR expansion tout temporary construction jobs and future tourism. But most permanent jobs at casinos and arenas are low-wage. And GSR’s expansion might not bring new visitors to Reno—it could shift them from downtown. That means less revenue for city-owned venues that are already struggling.
The Myth of the $2.4 Billion Impact
Supporters claim this will generate a $2.4 billion economic impact—but these types of projections are speculative and historically overblown. TIF projects in Reno (and across the U.S.) have a poor track record of delivering on their promises. Look no further than the underused Bowling Stadium, struggling Event Center, and Ballroom or the unfulfilled promises of the STAR bonds at Cabela’s and the railroad Trench.
What Happens If We Say No?
The idea that doing nothing means getting “nothing” is disingenuous. GSR would still likely build—the economic pressure and property value incentives are already there. And if they don’t? Reno saves itself from another tax siphon and retains control over its revenue. The real missed opportunity is continuing to subsidize billionaires while asking taxpayers to make up the shortfall.
Lack of Transparency and Public Input
What’s worse, the city has sidelined citizen advisory boards and made no real effort to engage the public. City Council members, RDA officials and people in prominent positions post articles and conduct interviews touting the GSR deal.
But questions are left unanswered. Will Reno residents use the expanded facilities? Is moving the ball team from UNR to the GSR a good idea? Can Reno meet its financial obligations? How have similar past deals performed?
Reno Needs to Reevaluate Its Actions and Finances
TIF is for truly blighted areas that need a jump start. But GSR doesn’t fit that definition. This deal isn’t revitalization—it’s corporate welfare.
The GSR TIF deal isn’t just bad policy—it’s a betrayal of public trust. Reno’s taxpayers deserve transparency, fiscal responsibility, and leadership that prioritizes the public good over developer giveaways.
Reno needs to:
Restore citizen advisory boards and act on their input
Audit and publish financials on city-owned venues
Invest property tax revenues into public infrastructure
Stop issuing tax breaks that weaken the city’s long-term fiscal health
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