Lien doc against RCC by former general contractor

by Mike Van Houten / Mar 27, 2024

A lien document against Reno City Center filed on 3/18/24 with Washoe County by Luxe Industries LLC, their former general contractor, reveals the mammoth cost of the project thus far and how much work has been done. 

The lien, which you can read by clicking here, is for $9,968,446.94

The general contractor is the one who actually builds the project. Right under the developer, they typically sub-contract nearly everything to different companies, have their preferred companies they work with, for everything from asbestos abatement to concrete work to tile installation. The materials, labor, etc of these companies funnel up through the general contractor, what the general contractor charges the developer, plus in this case, a 4% GC fee. In most cases it doesn't include the design work of the project. 

So, in this doc, the amount of the original contract with the GC was $66,635,788. Then additional work/labor/cost increases/supplies etc were cost out at $132,898,317.32 So all told, it's a whopping $199,534,105. 

Now, the general contractor, Luxe Industries, has been paid out $73,898,317.32 presumably for work done thus far, prior to construciton halting. The lien, or what Luxe Industries is claiming is owed, is $9,968,446.94. That number could include all the liens from the sub-contractors on project, I'm not sure on that though. 

So, going by the numbers on the lien, the cost of the project thus far through the GC channel is $83,866,764.26 when you add up what was both paid and owed to the GC. So, if the original quote for the project is anywhere close to being accurate, then that leaves roughly $111 million of work left, of the project as originally planned and envisioned. Or, roughly half-done.

I really hope the significance of this project for downtown isn't lost on those involved. This project is probably just one small piece of a larger giant investment portfolio probably consisting of different funds etc. But to downtown, this multi-block, 1-million square-foot beast is a catalyst project that would spur investment in east Reno, perhaps finally filling out and fulfilling the promise of a 'baseball dsitrict', even if the district ended up being mostly residential.

A lot of the hard work (asbestos abatement, demolition) has been done. It's a shell ready to complete. I'm guessing based on the numbers above, just a guess, that it's about half-complete. Get a new general contractor, open the first floor, the plaza, and the residences, get income flowing in. 

Post your comments
No comments posted.
MENU