The City of Reno and RAAB Board will consider whether to help fund a $7 million parking garage as part of a larger mixed-use development at Keystone Avenue and 5th Street. The developer, Keystone MF Holdco, LLC, is asking for Tax Increment Financing (TIF) - a tool that allows them to receive a portion of the increased property tax revenue generated by the project.
What’s Being Proposed?
The project includes:
- A 278-space parking garage ($7M) to support retail and housing. The parking would support the residential project, employee parking for the already-built retail, and some guest parking.
- 191 apartments, with 38 units (20%) designated as affordable housing for lower-income residents.
- 5,000 square feet of new retail space, adding to the existing businesses at West End Commons (which already has Starbucks and In-N-Out).
The developer says the garage is essential for the project to move forward. They argue that without TIF funding, they’d only be able to build about 40 housing units with surface parking instead of the planned 191-unit building with a parking structure.
Why Does the Developer Need TIF Financing?
The developer claims that rising construction costs and market conditions make the project financially unfeasible without assistance. Their financial projections show that with TIF support, the project’s return on investment jumps from 3.26% to 10.07%—a much more attractive figure for investors.
What’s in It for the City?
- More Housing: Reno desperately needs housing, and this project would add 191 units, including affordable options.
- Boost to Local Businesses: Parking relief could help businesses thrive.
- Increased Tax Revenue for the overall neighobrhood and district.
What Happens Next?
Staff recommends The Redevelopment Agency Advisory Board to approve moving forward with due diligence, which means:
- It will then head to the Reno Redevelopment Agency Board for review as well
- Financial "Gap Analysis" – Checking if TIF is truly needed.
- Revenue Projections Review – Ensuring the city benefits in the long run.
- Negotiation – Hammering out terms to make sure taxpayers get a fair deal.
If approved, construction could begin as soon as July 2025, with completion in mid-2026. You can find the RAAB Board meeting info (March 3, 11 am) here.
NOTE: I was recently appointed to the Rede velopment Agency Advisory Board (RAAB), chosen for it because I have written about downtown projects and happenings for the past 20 years, and it's inevitable there's some crossover of projects I report on and what goes before the RAAB. I've cleared writing about projects with the Assistant City Manager and City Attorney's office, as I have no financial stake in anything downtown nor ever have, and there is no conflict of interest in doing so. I have made the decision to present the facts about any project that may come before the advisory board so the public is aware of them, as I have done for the past 20 years on this web site.