When Reno officials were negotiating financing of the ReTRAC project with the Union Pacific Railroad, much of what the railroad brought to the table was air.
But it may prove to be valuable air.
Now that the train trench is completed through 2.3 miles of downtown Reno, city officials find themselves fielding an increasing number of proposals from companies interested in developments along the trench.
Some are interested in properties in the railway right-of-way properties that the Union Pacific turned over to the city as part of its $60 million contribution to the ReTRAC project.
But others, says City Manager Charles McNeely, are interested leasing a portion of the city's air rights over the project, placing a cap over the trench and building commercial or office space much as the Walgreen's store on North Virginia Street is built on air space over Interstate 80.
The city manager and City Council, while jazzed about the possibilities, want to slow down and think carefully before they do anything with the air rights.
Engineers figure that about three blocks of the train trench maybe a little less could be capped. That creates a lot of new space downtown.
Throw in the properties along the banks of the trench that the city now controls, and the blank canvas for development becomes even more significant more than 70 acres.
"We've got a unique opportunity to do a fantastic job," said McNeely. "I would like to get away from having a hodge-podge down there."
One possibility that's been kicked around, he said, is an open space atop the train trench as a location for summertime festivals. That would open downtown streets that now are closed for festivals on many summer weekends.
Some downtown gaming properties that neighbor the trench, meanwhile, are
exploring possible expansion onto caps above the track.
Other people, McNeely said, see potential for open space, both above the trench and along its banks.
And still others see possibilities for retail, office or other development in the air space above the Union Pacific tracks.
Given the competing interests and the desires of the city's staff to do things right, the City Council has agreed to await a master plan for development of the trench area before signing any leases.
In the meantime, McNeely said, the properties in the right-of-way given to the city as part of its deal with the Union Pacific are kicking off about $2 million a year in rents.
Those rents were artificially low when the city took control of the properties, the city manager said, and have been increased to reflect the current market.
The higher rents mean the city probably won't follow through with its earlier plans to sell the properties to raise money for the ReTRAC effort.
Instead, McNeely said the city wants to keep ownership of the properties and the stream of rental income that can be used to augment the city's budget because it's not earmarked for ReTRAC expenses.
Planning of potential uses of the corridor is expected to take about 60 days.
"Let's be smart about it," McNeely said. "Let's take our time."
