The Collapse and Revival of Harrah's
Will we ever see the completion of this project and a revived downtown?
When the Harrah's casino closed in 2020 after nearly 83 years of operation, city leaders and developers hailed its $50 million sale as a pivotal moment in Reno's urban revival. The property in the city's core was rebranded as Reno City Center, featuring a vision of mixed-use revitalization: housing, offices, retail, entertainment, and prestige.
But by 2024, that vision lay in ruins. What began as a high-profile Opportunity Zone investment turned into a bankruptcy case, a revolving door of contractors, and an example of Reno's credibility crisis in public-private redevelopment.
Now, four months after a rescue takeover by Madison Capital Group and Ahlquist LLC, the site is stirring again under a new banner: Revival. Can a change in leadership overcome the damage of years of overpromising and underdelivering? Will we finally see the destination that we were promised?
I wonder about this project every so often, as I visited the old Harrah’s shortly before it closed, and while it did need a revival at least it had something going on that has been missing for the last 5 years and I looked forward for the Reno City Center.
The Pitch That Sounded So Good
In August 2023, during a "Pitch Day" webinar hosted by OpportunityDb's Jimmy Atkinson, GPWM Funds managing partner Kirk Walton showcased the Reno City Center as a jewel in his firm's portfolio.
"This is an asset with solid bones," Walton said. "We got it cheap. We're putting it back on the market better than ever."
He promised apartments, a boutique hotel, Class-A office space, restaurants, and a revival of the Sammy Davis Jr. Theater. Investors were told the project was nearly complete and poised for quick returns. But that public narrative was masking a crumbling foundation.
I remember going to Sammy’s at least two times, in 2019, before it closed; once for the Rat Pack Revival show and once for a cabaret. It was nice. You could get a table, a drink, and a snack, and be entertained for not all that much. Why does it seem that there are fewer places to go after 6 years and not more places to go in Reno?
The Fallout and Bankruptcy
By early 2024, contractors were unpaid. Permits had lapsed. Tenants, including the University of Nevada, Reno, were backing out. The student apartments never happened. Despite the signs and website, leasing never happened.
In February 2024, Reno City Center LLC filed for Chapter 11 bankruptcy. At issue was a default on more than $104 million in debt, including a complex mix of construction loans, C-PACE financing, and mezzanine debt.
"They destroyed Harrah's Steakhouse and Sammy Davis Jr.'s legacy—for nothing," wrote one Reddit user.
I never made it to Harrah’s Steakhouse for dinner. Once the sale was announced, they were booked solid until they closed. I did get to take a look inside, and I asked if they had a table for a walk-in, but no, that wasn’t happening.
The Takeover and Revival
In February 2025, the court dismissed the bankruptcy after a $37.5 million payment was made to satisfy creditors, and control transferred to Madison Capital Group and Boise-based Ahlquist LLC.
Madison provided fresh capital. Ahlquist, led by local developer Tommy Ahlquist, assumed day-to-day planning and construction responsibilities. Their immediate goals were clear: stop the bleeding, repair community trust, and deliver what they could from the ashes of the original plan.
They rebranded the project as "Revival" and launched a public outreach campaign. At least they didn’t call it Phoenix.
What Madison and Ahlquist Inherited
A project 70% complete on paper, but with expired permits, paused construction, and a deeply skeptical public.
A city government that had granted incentives and approvals under the banner of affordable housing, only to find that it was marketing spin.
A Reddit and Nextdoor ecosystem flooded with residents angry about missed deadlines, faked leasing websites, and glossy renderings with no substance.
No affordable housing. It was all just a ruse to build public buy-in.
Former contractors reported unpaid invoices and such severe mismanagement that one contractor quit without another job lined up.
And Then What Came Next
Guest Relocation
March 2025: Ahlquist Development issued notices to guests at the Reno Suites weekly motel (part of the complex), extending their stay through the end of March and offering free relocation services, food vouchers, and deposit support to help them move. This was after a news disaster that exposed them for carrying out no-notice evictions.
Permit Reactivation
April 2025: Madison Capital and Ahlquist initiated the process to reactivate building permits and brought back subcontractors from the original Reno City Center team, with new firms also joining the effort. Ahlquist estimated that roughly 70% of the north tower's multifamily area was completed and projected that $120 million more was needed to finish the project.
The Bigger Picture
Reno's downtown development ambitions are at risk. Between the Reno City Center fiasco and the Jacobs Entertainment land banking, residents are questioning whether the city's economic development policies will lead to success.
The Opportunity Zone tax benefits, once used to pitch Reno City Center, now read like a cautionary tale of opaque financing and political complicity. The city's much-touted "1000 Homes in 120 Days" resolution, which included this project, has not produced results and was only used to hype the project.
We are waiting for the big announcements that Mayor Schive promised in December 2024. We are waiting to see how Reno restructures its future incentives, regains public trust, and centers residents in urban development decisions.
We are looking at you, Reno Redevelopment Agency.