Incentives
The Reno Redevelopment Agency provides incentives from property and sales tax increment funds.
Tax Increment Funds - Nevada state law makes available to redevelopment agencies a method of obtaining funds called "tax increment financing." On the date the city council approves a redevelopment plan, the property within the boundaries of the plan has a certain total property tax value. If the assessed property valuation increases, most of the property taxes that are derived from the increase go to the redevelopment agency. If a sales increment (a.k.a. tourism improvement or STAR bond) district is created where no sales tax revenues were previously generated, most of the sales tax increment revenues go to the City. These funds are called "tax increments." Usually, the flow of tax increment revenues to the agency and/or City will not be sufficient in itself to finance the full scope of redevelopment activities and development projects. Therefore, agencies and cities issue bonds. These bonds are not a debt of the city or county general fund and are repaid solely from tax increment revenues. Tax increments can be used only in the same project area where they are generated.
Reno has both property tax and sales tax increment districts. The property tax increment districts are
Project Area 1 (RDA #1) and Project Area 2 (RDA #2). The sales tax increment districts are Cabela's
map, Freight House District
map and Tessera
map. The City Council has adopted
guidelines for negotiating sales tax increment reimbursement agreements. The revenues from the increments are used to buy property, that is made available to developers, as an incentive to provide infrastructure (streets, sewer lines, sidewalks, etc.) needed for development, or to directly reimburse developers for preapproved projects.