The Reno City Council on Wednesday voted to appeal a decision regarding Jacobs Entertainment’s proposed “Reno Neon Line District” signage, which Judge Connie Steinheimer rejected in district court.
Dozens of constituents provided public comment, all of whom either asked the council not to appeal the decision or noted concerns over the topic in general. The majority argued Jacobs Entertainment should not be allowed to designate a district within the city that will largely only benefit their own business.
Jacobs Entertainment received preliminary approval from the city through a development agreement in 2021 to create three signs directing drivers to the properties it owns and calls a “district.” The area spans properties between Keystone Avenue and West Street east to west and I-80 and Second Street north to south.
Two planned signs would be 25 feet tall, colorful and LED-lit, displaying “Reno’s Neon Line District” with directions on how to enter the district.
The third sign is an archway that would be constructed over Fourth Street, reading “Reno’s Neon Line.”
Scenic Nevada, a nonprofit with a mission to “preserve, protect, and enhance the scenic character of Nevada,” appealed the city’s approval of the development agreement, citing violations of the city’s sign codes, especially concerning the voter-approved ban on new billboards in 2000.
“It’s easy to pick on Jacobs Entertainment, and people like to do it, I think.”Mayor Hillary Schieve
Judge Steinheimer ruled that the two 25-foot-tall signs were not area identification signs, as argued by Jacobs Entertainment and the city, but should instead be classified as billboards.
The first sign, known as the “Cemetery Sign,” was planned for a location nearly a mile from the district in Mountain View Cemetery and would face the freeway to be visible to motorists. Steinheimer determined it to be considered an off-premises sign that was more promotional than placemaking and that it would violate city codes.
The second sign, known as the “Gas Station Sign,” was planned for the Chevron station at the corner of Keystone and Fourth Street. Judge Steinheimer ruled that this sign was not an area identification sign either, but considered an on-premises sign, which should have been limited to 8 feet in height under city code.
However, it was determined that the Archway Sign does qualify as an area identification sign, as it serves as an entry point into the district.
Opponents of the appeal, including residents and some council members, argued that the “Neon Line District” was not officially designated by the city and would primarily benefit Jacobs Entertainment. The company trademarked the “Reno Neon Line District” name to promote their gaming and entertainment.
According to Jacobs Entertainment’s website, the company has invested over $100 million in acquiring more than 50 properties within the 20 city blocks it calls the Neon Line District.
On Tuesday, Oct. 24, Jacobs Entertainment filed an appeal of the judge’s decision. Both Scenic Nevada’s attorney, Mark Wray, and Council members Naomi Duerr and Meghan Ebert argued that this should suffice.
“The billboard regulations should apply to this developer, like all others in the city,” Wray said. “Jacobs has already appealed. Can we not say ‘go for it’ to honor the citizens’ vote in 2000 that prohibited new billboards? The judge upheld the arch sign, and we weren’t planning on appealing it.”
Mayor Hillary Schieve asked city attorney Jasmine Mehta to explain why the staff recommended appealing the decision.
One of the main reasons, Mehta said, was the judge made a determination that the city cannot deviate from their code in development agreements, which the City Attorney’s Office argues is not supported by state law. She also said it could be argued that Scenic Nevada did not have standing to appeal the decision since they are not a named party in the development agreement. Lastly, she said the judge’s ruling on what signs the code has jurisdiction over did not apply to the approved signage.
Schieve said that while she respects Scenic Nevada and Judge Steinheimer, she believes the signs are not billboards but are “place makers,” stating, “We received a lot of pushback when we branded Midtown as Midtown. I see no difference in the Neon Line District; it’s one of those things that you brand, and I think we need to do more of it. Branding helps businesses tremendously, especially those that can’t buy advertising or signage.”
Schieve further said she believes those voicing their dissent for the appeal are doing so because it involves Jacobs Entertainment.
“It’s easy to pick on Jacobs Entertainment, and people like to do it, I think,” she said.
Council member Duerr argued that Scenic Nevada “absolutely has standing,” especially because they are a nonprofit primarily focused on signage throughout the state. She added, “I think Jacobs is well situated to fight their battle. I think they also further hurt their case by trademarking [the name].”
Mayor Schieve argued there isn’t a business called the Neon Line District, even though Jacobs Entertainment now owns the name. She said, “It identifies a place, not a business. But this is about the legal aspect of the ruling.”
Council member Devon Reese said he is “agnostic” about Scenic Nevada’s standing but did not want the city to engage in a Supreme Court battle over signs. He emphasized that placemaking was a valid concept and that the signs could serve a more significant purpose than just providing directional information.
“We can agree or disagree about how big the signs were, were they gaudy, were they colorful; placemaking is a real thing, and so I think it’s OK that they can be more than just an ‘exit here to get a food symbol,’” he said. “I don’t think that’s what we want.”
However, he disagreed with Judge Steinheimer’s opinion that the city was prohibited from deviating from the code in a development agreement.
“I believe this is where Judge Steinheimer got it wrong, meaning she has overstepped the judicial role of reviewing a decision that we’ve made here,” Reese said. “I certainly believe that state law says we can deviate from the accepted code standard up or down in a development agreement, and that is the legal issue I think is worth pursuing.”
Reese asked what would happen if the city chose not to appeal, considering that Jacobs Entertainment had already filed an appeal. Mehta explained that the city would either be included anyway since they were a named party or there would be an “empty chair,” and the city would not participate.
Council member Ebert questioned whether the term “Midtown” had been copyrighted (it hasn’t), and she noted that search results for “Reno Neon Line District” specifically referred to Jacobs Entertainment, not a city district. In contrast, searching for “Midtown” yielded results related to multiple businesses and restaurants rather than a single business, like Jacobs.
Ebert argued that Jacobs Entertainment was capable of fighting its own battle, and the city should not be involved. “This is a developer-driven private thing,” she said. “I don’t think it’s the City of Reno’s place to get involved.”
Council member Miguel Martinez said he would be supportive of the appeal based on the ruling prohibiting ordinance changes in development agreements.
The council voted to appeal the court’s decision, with Ebert voting against.
Other items
The Nevada State Historic Preservation Office donated $30,000 with a $10,000 match from the city to recognize Old Highway 40 on the National Historic Register. Now known as East Fourth Street, the Lincoln Highway/US 40/Victory features nearly 50 historic buildings which were built between 1902 and 1960, including at least 35 brick-built buildings, more than a dozen mid-century roadside motels and a historic gas station. The grant will be used to survey and inventory the district.
Council accepted a $250,000 donation from the Atlantis Casino Resort Spa to supply fitness equipment for the new Moana Springs Community Aquatics and Fitness Center. The $52 million facility is under construction and projected to open Summer 2024.
An affordable senior housing project known as Sutro Senior Sanctuary received over $1.5 million in fee reductions through building and sewer fee waivers. The project will be built at two sites, one at the intersection of Sutro and Ninth Streets, and anothner south of I-80 and Sutro Street. The project will consist of 170 units, with 65 reserved for veterans at or below 60% of the Area Median Income (AMI). The remaining units will be reserved for seniors who are also at or below 60% AMI. The majority of fee reductions were in sewer connection fees ($1.45 million), with the remainder as building permit fee reductions ($64,477). The project is expected to break ground in 2024.
A consulting agreement was approved with Dig Studio to lead the Truckee River Plan, which will entail analyzing 19 miles of the Truckee River Corridor and adjacent land from California to Sparks. Reno will pay $229,627 towards the contract, with Washoe County footing the remaining $100,000. The plan aims to create “a vision for the Truckee,” including developing historic resources and park and trail improvements.
