Construction is now underway on a new mixed housing development in south Reno called The Summit Club.
Reno Land Inc. and Klein Financial Corp. held a groundbreaking ceremony Friday, March 3 to mark the start of construction on the 574-unit apartment community located adjacent to The Summit Mall near I-580 and Mt. Rose Highway. Of the 574 units, 155 will be dedicated to workforce housing.
“To be able to bring 155 units to this town of workforce housing, it is a big deal,” Chip Bowlby, president and CEO of Reno Land Inc., said at the event.
Reno Land Inc. is also developing several other large-scale projects in the community including Rancharrah, Park Lane, Meridian 120 and more.
The Summit Club is an 80/20 project, meaning that at least 20 percent of the units are dedicated toward low-income housing. Since announcing the project, the developers have increased the number of workforce housing units from 20 percent to 27 percent.
The workforce housing allows households that earn less than $25,000 annually, or 50 percent the average median Reno income, to be able to afford an apartment that better fits their budget. Residents will be able to rent a one bedroom unit for $625 a month, which is less than half of the market rate of $1,350 and a two bedroom unit for $750, which is less than half of the market rate of $1,800. The workforce and market rate units are designed to be identical and will be integrated within the complex.
“It is exactly what we need in terms of affordable housing,” Michael Holliday, chief financial officer for the Nevada Housing Division, said about The Summit Club.
The Nevada Housing Division issued $90 million in housing revenue bonds to help finance The Summit Club along with an additional $3 million in gap financing.
“The rental supply is so tight … it couldn’t come at a better time,” CJ Manthe, Nevada Housing Division administrator, said.
The apartment community will consist of a mix of 31 two-story and three-story buildings with one, two and three units. It will include amenities such as two clubhouses, two swimming pools, a fitness center, a playground, volleyball courts, bocce ball courts and more.
According to Co-Managing Partner and COO of Reno Land Inc., Tom Merschel, the project will be completed in two phases and tenants are scheduled to start moving in the first quarter of 2018. Q&D Construction Inc. is the contractor on the project.
The company had planned to break ground on the development before the end of 2016; however, it was delayed due to financing issues. It received a notice of default on a $7.25 million loan back in December.
Bowlby described these challenges as a “black eye” since there are many investors and local entities involved with the project. However, after a change of partnership, the project was able to get back on track.
“It is adversity, we had some bumps in the road,” Bowlby said. “If there weren’t bumps in the road everyone would be doing it.”
Many leaders in the community gathered at the groundbreaking event to celebrate the launch of the project.
“These are the types of projects that mayors get giddy over,” Mayor Hillary Schieve said. “It is so exciting.”
“It is a great day anytime we add affordable housing,” Mike Kazmierski, president and CEO of Economic Development Authority of Western Nevada (EDAWN), said at the event.
Affordable housing in Reno-Sparks is becoming more of a challenge with rising rental rates and a limited supply of housing.
“We need to add 5,000 housing units every year just to break even and we are talking about some pretty exciting growth going forward,” Kazmierski said.
For more information on The Summit Club, visit renosummitclub.com.