Daybreak: Developers dangle carrot in front of the City Council

Daybreak development location. Google Earth image.
Daybreak development location. Google Earth image.

The developers behind a massive south Reno development have given the City of Reno an ultimatum: approve their project, or they will proceed with other residential developments that do not include affordable housing and mitigation efforts offered by the Daybreak development.

Mitigation, should Daybreak get approved, includes more floodwater storage, more open space, traffic improvements and cash donations for city-wide affordable housing efforts.

That’s according to the developer, the California-based Newport Pacific Land Company, which sued the City of Reno after the mayor and city council denied the project last year.

SOURCE: TMRPA

Newport Pacific purchased the 1,000-plus-acre Butler Ranch in 2017. It subsequently applied to the city to build a community on the property. The project, which proposes 4,700 residences, was approved in 2018 by the Reno Planning Commission. Months later, the city council gave it a thumbs down.

Primary concerns were flooding and traffic. The project is in a floodplain, like many of Reno’s developments, and tends to be under water during major floods.

“My concern is that this status-quo situation is not going to be addressed,” Councilmember Naomi Duerr said last year. “And I understand that the applicants have an ability to protect their homeowners that would move in. My concern is … what is the impact on this entire flood plain? Uncertainty is probably where I’m at.”

“I was shocked — I did not know the stipulation was coming. There is precedent for settlements being baked behind closed doors.”

JENNY BREKHUS

RENO CITY COUNCIL

Process questioned

The developers sued the city after it Daybreak was denied. That temporarily kicked the council out of the process as the city attorney’s office initially sought to dismiss the lawsuit. It then engaged in closed-door negotiations with the developer, as part of a settlement process.

A judge’s order came later. It directed the council to consider rehearing the development to avoid further litigation.

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Few knew what occurred in those discussions. Councilmembers raised concerns about the closed-door discussions.

“I was shocked — I did not know the stipulation was coming,” Councilmember Jenny Brekhus said. “There is precedent for settlements being baked behind closed doors.”

City Attorney Karl Hall disagreed. He called the process transparent.

“What is different, in this case, is we have a transparent public process where council, the public and the developer are able to participate in an open settlement conference to determine if that’s a proper path going forward for our city.”

KARL HALL

CITY ATTORNEY

“In every case we have, we typically engage in settlement negotiations, and this case is no different,” he said. “What is different, in this case, is we have a transparent public process where council, the public and the developer are able to participate in an open settlement conference to determine if that’s a proper path going forward for our city.”

The City Council was given a choice: reconsider the project as modified on September 23, or it proceeds into costly and time-consuming litigation.

The council cannot place new conditions on Daybreak.

The “Missing Middle” 

A coordinated PR push this past spring had the community repeatedly hit with the term “missing middle.” News stories and editorials were advocating for an increase in missing-middle housing — including developments like Daybreak.

The term generally refers to a type of housing lacking in the local market–residences such as townhomes and duplexes that are affordable for the working poor, such as households with incomes between $20,000 to $60,000 a year.


The McCarran Scenario

SOURCE: TMRPA

The McCarran Scenario, shown in the map above, assumes a more compact development pattern when compared to the Classic Scenario. It also shows that the McCarran Scenario places more development within the McCarran ring road (25% of forecasted units).


The Truckee Meadows Regional Planning Agency in 2016 released a study showing that “we lack certain housing types, known as ‘Missing Middle’ housing.” TMRPA also said the location of developments was critical. Outside of the McCarran loop presents challenges for developers.

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“It is possible these areas may not develop to their full potential due to … infrastructure deficiencies, as development may be delayed until these services are addressed,” according to the report.

TMRPA presented what it called the “McCarran Scenario,” whereby development could be concentrated within the McCarran ring. More “high-density, single-family, low-density, multi-family” housing would be created within this scenario.

“The Truckee Meadows region needs a wider variety of housing types to meet anticipated demographic shifts and affordable housing needs,” the report concluded. “Like most metropolitan areas, the region does not have enough housing affordable to moderate- and lower-income households.”

Daybreak appeared mostly consistent with TMRPA’s “missing-middle” recommendations.

“We’ve been taken to court, in part saying we’ve exacted things. Making sure developments are done well is part of our job.”

NAOMI DUERR

RENO CITY COUNCIL

Back in play

The developer in early September said that revisiting Daybreak’s approval allowed for even more conversation about the project’s impacts and what may be done about them.

“It’s an opportunity to reduce the important concerns about flood water and mercury mitigation,” said Andy Derling of Wood Rodgers, the project’s engineering and planning consultant. “It’s an opportunity for us to do a better job of clarifying the technical elements and correct the public misconceptions.”

He proceeded to note that, in lieu of Daybreak, the Butler Ranch North Development could proceed now. That would allow for more than 1,500 homes in a floodplain with less flood mitigation than Daybreak’s.

Daybreak, he said, “significantly lessens development that modifies the floodplain more than the approved Butler Ranch North [development].”

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Daybreak’s attorney, Michael Burke, previously described the situation like this:

“Portions of the Daybreak development are already master planned, zoned, and entitled for residential development. The Butler North (planned unit development) would allow Daybreak to construct and develop more than 900 homes in the floodplain. Because the PUD has already been approved (with even less flood mitigation), Daybreak could begin construction on these homes at any time.”

Don Tatro of The Builders Association of Northern Nevada supported the project’s approval.

“All the things we’ve been asking for, I think this project represents,” he said. “With the engineering advances, with the concessions made by the developer, I think this is a great project.”

He also had words for those opposing such projects.

“I understand everyone wants to be the last one on the block,” he explained. “Everyone wants to be the last home built, but the reality is, that doesn’t work.”

He called Daybreak a tremendous asset to the area, a region in desperate need of housing, mainly housing people can afford.

Residents are furious, however, with the prospect of Daybreak getting built. Councilmember Oscar Delgado cited already grievous traffic problems in south Reno. Emergency services were also questioned. The Reno Firefighters Association said the project would require new resources.

Other councilmembers expressed concern.

“To make sure our new residents have police, fire, flood protection, education, all the things that they need is our job,” Duerr said. “We’ve been taken to court, in part saying we’ve exacted things. Making sure developments are done well is part of our job.”

The council narrowly approved the project’s reconsideration for September 23. This time council members will vote on it with new conditions — conditions that were negotiated without their knowledge.

Bob Conrad
About Bob Conrad 1122 Articles
Bob Conrad is co-founder of ThisisReno. He manages ThisisReno and Conrad Communications, LLC, his marketing communications consulting company. He also works part time for the University of Nevada, Reno.

4 Comments

  1. I agree that this is less of a carrot dangling in front of the council and definitely more of a bribe at the expense of lower-income housing and building an iffy development where one should never be.

  2. Well it doesn’t get any more crooked than out and out public Blackmail.The developer should build out their other projects and leave the area forever. The builders Association should be ashamed to show their faces in public. The builders association has driven this lack of housing narrative for years now and it is simply not true. The Region has enough approved yet unbuilt development to last the next forty years. Check this on the TMRPA Website. The mix of housing can be changed within the existing approved but not yet built projects. It is time for Mayor Shevie to stay out of the development business. Finally, who said that Reno should be the provider of all of this housing. WHO? The developers,their representatives and the builders association. You don’t hear the public crying for this growth ,Only the special interests.

  3. What happens to all of these houses when the majority of the jobs, at the industrial park, are automated and unemployment skyrockets in the next twenty years?

  4. These new “housing developments” are a nightmare; they lack any kind of neighborhood community….the development we toured made me cringe as the homes where five feet apart on the sides and about six feet in what they called a “backyard” which consisted of a drainage ditch in the middle, no front yard at all and tandem parking in the garages..the houses were all in a row and every window you looked out of was looking at a fence..depressing was not enough to describe this neighborhood…it reminded me of the concentration camps of the 1940’s…I am ashamed of City of Reno, Washoe County and the State of Nevada for allowing these kind of places to be built. It most certainly does not represent what living in Nevada means…and the real kicker? These “homes” went for $600,000 plus..and you can’t even plant a tree…disgusting! My heart goes out to those “poor” people who think that this is ideal living conditions… what ever happened to the surveys that we participated in how we wanted to see Reno/Sparks develop? I can pretty much bet these kind of developments where not in the plans…shame on the developers, the city and county…those that approved all this depressing mess should be condemned to live in what they approved of…bet they wouldn’t last a week…

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