The owners of the Reno Aces want an accelerated payout from sales-tax rebates to soothe their nervous lenders.
The owners of the Reno Aces (Class AAA; Pacific Coast League) want an accelerated payout from sales-tax rebates to soothe their nervous lenders.
Here’s the deal. When the Katzoffs and Herb Simon entered into an agreement to build a new ballpark and entertainment district in downtown Reno, they were promised up to $2 million annually in sales-tax rebates from the increased revenues raised by the project. Not an uncommon way to finance a ballpark — or any other commercial development, for that matter.
But these sales-tax rebates don’t kick in until the project actually generates, well, sales-tax revenue. And the notion of a payout down the line doesn’t sit too well with lenders, who want their money now.
So the Aces ownership is proposing the rebates be bumped up to $2.5 million annually, and they want to be guaranteed $1 million annually. In return, they’ll complete the entertainment district they promised as part of the project. (No fear about the ballpark, which is on schedule to open in April.) Without the cash from the city, there’s a chance lenders will pull their support for the downtown entertainment district, delaying construction.
No word on whether the Reno City Council will agree to the new terms; a decision on the proposal has already been delayed.