Colorado-based Jacobs Entertainment this week issued a press release indicating it wants to buy downtown’s Bonanza Inn. A purchase of the property will continue the company’s dominance as a downtown property owner, with more than 70 properties purchased in recent years.
Jacobs is alleging to build an entertainment district, but many of the company’s purchased properties remain empty lots.
“We intend to make a strong bid to acquire the property in order to develop additional workforce housing, with a set aside for 10% affordable senior housing units,” the company’s CEO, Jeff Jacobs, said in a press release.
The Inn, when open, was the subject of repeat code violations and is scheduled to be sold by auction on Nov. 29, 2023.
The property early this year was meant for redevelopment into 58 units of affordable housing in a deal with the Reno Housing Authority – until the City of Reno backed out of the arrangement.
Reno City Manager Doug Thornley in March told the Reno Housing Authority’s Hilary Lopez the city wanted to sever their agreement.
Thornley wrote: “The city council has invested quite a bit in housing affordability over the last few cycles, and the RHA received a tremendous amount of funding from the state – which gives the city an opportunity to consider other strategic investments.”
Lopez was pissed.
“As your partner in affordable housing development, RHA staff was dismayed to receive this notification without prior discussion and given the fact that staff from the City of Reno’s Housing and Neighborhood Development Department recently attended RHA’s [Feb. 28] Board meeting where Commissioners reaffirmed their standing directive to proceed with this project.”
A Reno City Council workshop this week on affordable housing revealed the area needs more than 21,000 affordable housing units based on current needs. At the city’s current rate, demand would be met in the year 2066.
If Jacobs Entertainment redevelops the Bonanza Inn with the same number of units as originally planned by RHA, it’s 10% offer for affordable senior housing would result in just 5-6 units.
