New Deal in the Works Between Reno Aces and City of Reno Alarms One Mayoral Candidate
The Aces ownership Nevada Land group which includes real estate mogul Herb Simon is currently looking to restructure its agreement with the City of Reno over the $50 million publicly funded and privately owned Greater Nevada Field, including acquiring ownership of the stadium in exchange for not leaving the Biggest Little City and investing in the stadium area.
This is part of negotiations concerning the current deal which has a non-relocation commitment for the Aces currently expiring years before the team’s lease on the stadium.
Reno is still paying about $1 million a year for the stadium’s construction which was partially funded by a rental car tax surcharge in Washoe County and tied to tax increment financing for downtown projects.
It was restructured during the Great Recession due to financial issues, extending the payment period an extra ten years and making Reno’s general fund the guarantor of the debt.
“Staff received direction to review existing contracts to identify gaps, upcoming deadlines, and potential opportunities for renegotiation that could benefit the City,” a recent City of Reno staff report indicates.
“During this review, it was noted that the Aces’ baseball operating and non-relocation commitment is set to expire in April 2029, while the team’s lease and payment settlement agreement extends through 2043.”
Nevada Land now wants to extend the non-relocation commitment through 2049 while also transferring the current public ownership of Greater Nevada Field to Nevada Land.
Simon who co-founded an Indiana based real estate firm also owns Meadowood Mall and is the majority owner of the Indiana Pacers.
The deal would also see the Reno Aces ownership invest $40 million in capital improvements to the stadium and surrounding areas over 10 years, with half of that in the first five years, with the city allowed to use the ballpark for other events up to five days per year although not for free.
“We’re proud of what this partnership has already delivered for downtown, and we believe thoughtful alignment can build on that success for the next generation and beyond,” Reno Aces president Eric Edelstein said in a statement released to media.
Despite the new deal though, the city’s $1 million annual payment would remain until 2043, with money coming from its redevelopment agency fund. If the city failed on this payment, the Aces would be freed from the non-relocation and investment commitments,
This new proposal will be discussed next week at the Reno Redevelopment Agency advisory meeting Monday before going to the Reno Redevelopment Agency Board Wednesday with not everyone in the community in agreement.
“Go to the meeting and vote no this is bs like I said for years we need to get out of subsidizing the ballpark 1 million a year for the billionaire. When approved the million a year the old Mayor Bob said at the meeting we could get out of it at anytime. No one subsidizes our businesses they wrote a book on cities financing ballparks, all bad for the city. This contract is not up for years just this Council trying to firm up bad deals before we get in office. Watch out for what is up and coming before the election on their way out,” mayoral candidate Eddie Lorton wrote on his Facebook page this morning.
Item B1 for Wednesday’s Redevelopment Agency Board meeting indicates: “Presentation, discussion, and possible approval of a term sheet setting forth proposed modifications to agreements that govern the Reno Aces stadium (Greater Nevada Field) public-private partnership among the City of Reno, the Redevelopment Agency, Nevada Land LLC and the Reno Aces Baseball Club, including the Ground Lease Agreement, Stadium Lease Agreement, Payment Agreement and Settlement and Restructuring Agreement, pursuant to which such agreements will be renegotiated and modified to, among other modifications, extend the team non-relocation commitment by 20 years, provide for additional capital investment by the team ownership, and provide for the transfer of title to the stadium improvements to Nevada Land LLC, and authorization for the Executive Director to execute any necessary and appropriate agreements to effectuate such modifications and documents associated therewith, and matters properly relating thereto.”
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