New downtown neighborhood construction delayed
Construction of the first building in downtown Reno's largest development, West 2nd District, has been delayed.
The first West 2nd District condominium and retail building at 235 Ralston St., also called 235 Ralston, was originally slated to break ground as early as March. But concerns over insurance and homeowners association legalese put a hold on the project.
West 2nd District developers, Don J Clark Group, proposed a 17-acre multi-building redevelopment project that would ultimately cost $1.2 billion between land acquisitions and construction. The project could take up to 10 years to build. In April, the Don J Clark Group asked the Reno City Council for a development agreement with the city, but that was also put on hold so staff could generate a list of information required to conduct due diligence reports.
No insurance, no permits
The 235 Ralston condo was not part of this request to the city and has already moved forward with completing final designs and reserving 80 percent of the condos to prospective buyers. Don J Clark Group also received two letters of intent for retail space on the first floor.
But the building needs wrap insurance to protect developers, contractors and subcontractors before construction begins, said Colin Robertson, partner and the director of communications and strategy at Don J Clark Group.
"We want to make sure the insurance is right so people don't have to pay cash," he said.
Wrap insurance also ensures buyers can receive bank financing for mortgages instead of paying cash. Until the insurance is secured, contractors will not pick up building permits from the city.
HOAs lacking backing
Robertson said West 2nd District will also have a district-wide HOA and separate building-only HOAs. Owners will only pay one fee for both. But without the proper legal wording, the HOAs cannot work together to cover the development. Robertson gave no timeline for completion but said they update deposit holders on progress.
Next on the list is building two at 240 Ralston St. Robertson said this building will include two floors of retail and 25 apartment units for rent. Five of those will be reserved for affordable housing set under market rate rent.