Within next week's staff report, there's a proposal to create a tax increment district for West Second Street called appropriately enough, the West Second Street District.
The City of Reno has been approached by Secundo Vita, LLC regarding working with them on a large development project in downtown Reno comprised of approximately 17 acres with proposed residential, retail, office, hotel, and parking components with a total estimated project budget of $1.281 billion. The City of Reno has completed tax increment projections and financial standing and is recommending a presentation to the City Council to determine steps to proceed with development of a Disposition and Development Agreement as requested by the developer.
This presentation will be during next Wednesday's city council meeting. Below is a map of the properties in question, where the development would be going.
The staff report here reads:
"According to the developer, the West 2nd District is an urban development project proposal by the Don J. Clark Group, an architect-led redevelopment company from Reno, Nevada. Consisting of new residential, commercial, retail, and office space, as well as civil and technological infrastructure, the West 2nd project proposes urban infill and revitalization for a sector of the urban core specifically targeted for redevelopment. The West 2nd urban live-work concept aims to make the downtown area more livable, vibrant, and engaging for residents and visitors alike as Reno grows over the next ten years. The project links the expertise of a global P.4
business and knowledge network with local business, history, and context, energizing economic development for the region, and will invest redevelopment tax increment funds in community infrastructure and culture up front, supporting education, affordable housing services, public art, technology, and research.
Staff has completed tax increment projections based on early requests that future Tax Increment be committed to the project in the form of reimbursements for projects that would be pre-built such as infrastructure, art, and development. Consistent with past practice, the City hired, and the developer funded, Keyser Marston Associates (KMA) to prepare a projection of tax increment to be generated by the Project. The results of that analysis are included herein. Please note that the developer provided the conceptual development program and absorption schedule for the tax increment analysis. KMA makes no representation that the development will be constructed according to the program, absorption schedule, or budget provided. Actual revenues may be higher or lower than what has been projected.
In summary, given estimates that all obligations are satisfied by the development of only the West 2nd project as proposed, and assuming the construction schedule takes five additional years to complete, and assuming no additional growth in RDA #1, the Tax Increment generated is approximately $46 million.
The developer is requesting that staff begin negotiations on a Disposition and Development Agreement to be brought before Council which would likely include purchase or transfer of City property (alley/parking lot) and potential reimbursement of Tax Increment. "
The project concept breaks down as follows: