Jacobs Entertainment and the Reno Housing Authority (RHA) have reached an agreement that will result in the construction of a $20 million, 65-unit affordable housing development by Jacobs Entertainment.
Once completed, the new property will be transferred to RHA in exchange for Jacobs Entertainment acquiring the 60-year-old Sarrazin Arms Apartments, formally appraised as being worth $2.15 million in December 2017.
“This is a win-win for both parties and for the future of Reno’s downtown,” said Hilary Lopez, Ph.D., executive director of the Reno Housing Authority. “We’re delighted that through this public-private partnership, RHA will not only be able to preserve quality affordable housing downtown, but increase the supply, as well.”
The Reno Housing Authority board unanimously approved the agreement, which will provide 65 new units, including studios and one-bedroom apartments with amenities including dishwashers, ceiling fans, an on-site management office, bike storage and a community room. The deal also provides for guaranteed parking for RHA tenants. The new building will be located next to the Gibson Building, a 20-unit apartment building built in 1917, which Jacobs Entertainment also intends to restore.
In keeping with the policy of the RHA board of commissioners, these new units will rent for no more than 80% of the current market rate. Every Sarrazin Arms resident in good standing at the time of construction completion will have the option to move into the new units.
The RHA board will have approval of final building design prior to being submitted for permitting. Jacobs Entertainment will cover all construction costs for the new building. The property swap option agreement extends through 2028.
Jacobs Entertainment has also committed to providing financial support to relocate the existing tenants of the Sarrazin Arms Apartments to the new development. Until the new complex is completed, RHA will continue to own and provide routine maintenance and upkeep at Sarrazin Arms.
