Mayor threatens to create ‘hit list’ of dilapidated downtown properties

Reno City Council members on Wednesday were presented with next steps following the Gehl Virginia Placemaking Study which seeks to transform areas of the downtown with revitalization projects. 

They authorized the city manager to approve a $365,000 contract for urban design services as part of the project.

Much of the discussion surrounded the condition of downtown, during which Mayor Hillary Schieve said the reason the area has not been revitalized is because landlords are hoarding properties and refusing to invest in updates and improvements. 

Improvements recommended through the placemaking study and by city staff include a facade improvement program; the addition of lighting, seating and other furnishings; upgrades to Locomotion Plaza; and seating at a plaza owned by the ROW casinos.

In total, council previously approved $3 million for “placemaking” which includes $1 million for the facade improvement grants and $2 million for other placemaking efforts on Virginia Street.

Already-approved facade program debated

City Revitalization Manager Bryan McArdle said roughly 72% of the downtown area contains “dead or inactive” facades. 

Council members approved the facade improvement portion of the revitalization project in March using pandemic relief funds. The funding approval also included a tenant improvement and lease support program. Both are aimed at managing downtown vacancies and supporting “ground floor activation.” 

The RE-Store Facade and Tenant Improvement Program provides matching grants to property owners and business tenants for facade improvements and interior upgrades to “enhance the visual appeal, economic vitality, and overall livability of commercial areas of downtown.” 

Through the program the city will reimburse applicants for 50% of costs up to $50,000 each for exterior and interior improvements. Applicants only receive the funds once the improvements are completed.

Schieve said she wanted to see a condition on the program that once buildings are improved they must have a tenant as well.

Schieve went on to say the programs approved would not bring in any new businesses — the only way new businesses will come to downtown is if they can afford the rents. 

“We can do all this, you guys, but it’s not going to attract a business,” Schieve said. “I know, I own retail stores, let me just tell you — if the city understands that by doing this…if the council thinks this is what’s going to attract the doors to get opened downtown, it’s not, and you should bring in a group of retail owners so they can tell you what it takes to open up a business.” 

McArdle said that prioritization would be given to owners who have active tenants in mind, and once the facade improvement is complete, it has to be marketed for up to five years and improvements must be maintained for up to five years. 

The project must also be a complete facade renovation or a complete interior renovation as well, McArdle said, rather than using the funds for partial improvements. 

“We have to be very careful, and I hate this analogy, but if we put lipstick on a pig — is that what’s happening here? So we’ve got to be very careful.”

Schieve went on to say that she owns a retail store and “would love to be downtown,” but the rents are “through the roof” among other issues. 

“Here’s the sad part — you have a lot of people that own property downtown and can afford to sit on it and hoard it and that’s what’s happening,” Schieve said. “You go and look at the condition of those buildings and you say ‘Really? You want $3-$4 a square foot? Let’s get real.’ Those are going to sit there until there’s something in that mechanism.” 

Schieve said if the city really wants businesses to return to downtown, which she says is the only way to revitalize the area, landlords need to be agreeable to make the investment which they have not been so far. 

The reason landlords are refusing to invest in downtown revitalization, she went on, is because they’re waiting for large investors to buy out their buildings instead. 

She also threatened to create a “hit list” of vacant, dilapidated downtown properties.

“I’m gonna start having a hit list, because honestly, the way that they look downtown, how do you think you would — if they’re serious about getting tenants, really? ‘Cause if you were, you would maybe clean it up and put some paint on. That is not what’s happening, everyone needs to like open their eyes,” Schieve threatened.

McArdle said that for many properties in the downtown area, they are neither for sale nor for lease, and the status of the property’s condition is still unknown to the city. 

“Even if a small business owner did want to move into the downtown, even with an incentive, there may not be units for them to move into,” he continued. 

“If you don’t want to clean up your business, then we should be putting up big walls with big murals because that would be better to look at than what we’re looking at today,” Schieve responded. 

During discussions, Schieve took aim multiple times at the historic Byington Building at the corner of Virginia and Second Streets, which she referred to as “pathetic” and “horrific.” 

“I hope those business owners are hearing this and watching this,” Schieve said. “I’m sure they’re not because they don’t care about their properties quite honestly, if they did, they would figure out how to work with those business owners, but business owners can’t take the risk.” 

Councilmember Jenny Brekhus agreed with the mayor, stating the last thing she wanted to do was support “deadbeat absentee landlords who are really just using some of these downtown properties as cash in the bank.” 

Councilmember Meghan Ebert asked what would happen to the $1 million set aside for facade improvements if it is not spent. McArdle said that if the funds are not used by the end of 2024 they will need to be reallocated. 

The rest of the plan

With the approval to hire an urban design consultant for the rest of the projects, city staffs expects a schematic design within the next two months and phase one design to be 30% completed by late October. Phase one construction is slated to begin March 2024 and continue through July 2024. 

Council member Kathleen Taylor applauded the short time frame, calling it “fantastic.”

“We allocated the money in March and we’re planning on being in construction in March (2024)? That’s fantastic, great job, look at government move.” 

Phase one of the streetscape furnishing zone improvements include adding public seating on every block of Virginia Street, installing wayfinding signage with walking distances to various districts and destinations, increasing shade structures, and assessing the need for event infrastructure upgrades. 

Council member Naomi Duerr said she supported the addition of added seating, but found it “ironic.”

“At one time this city took out seating, not very long ago on my time and tenure, and now we’re putting it back in, and I’m so glad to see it,” Duerr said. 

Additional seating is also planned for Locomotion Plaza along withstorage facilities,tables and lounge style chairs, and shade structures. There was also discussion of developing a plan for recurring events, however Schieve pondered who would actually be scheduling and producing those events. 

The ROW Placita project, on the small plaza between the casinos and the Reno Ballroom, includes adding moveable seating and wayfinding signage. City staff plan to form an operations and maintenance agreement with the ROW and Downtown Reno Partnership for the location. 

Duerr said she wanted to make sure the ROW Placita – which is private property – would be open to the public, since there would be public dollars put into it. 

Brekhus went further, saying she would not be supporting the ROW Placita, as it is owned by “the world’s largest gaming company” who should have the funds to design and revitalize the area themselves. 

Council voted in favor of authorizing the city manager to approve of a design contract for the first phase of placemaking design, with Brekhus voting against.