Only on RGJ: Greyhound threatens to sue RTC and city of Reno over delays to relocating bus station

Mike Higdon | Reno Gazette-Journal

Updated at noon July 12, with meeting audio file

Greyhound Lines may sue the Regional Transportation Commission and city of Reno after more than a year of failed conversations, delayed decisions and a potential civil rights violation, according to a letter obtained by the Reno Gazette Journal.

Greyhound sold its downtown Reno bus station in March 2018 because it no longer needed such a large facility. Before the sale, the company talked with the Reno City Council, the RTC and the RTC's board of directors to find a new place to operate. The Fourth Street bus station and Amtrak train station in downtown Reno and Centennial Plaza bus station in downtown Sparks were all considered options at RTC and City Council meetings.

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"It sold its existing terminal so that it could be redeveloped," according to the letter by Greyhound's attorney, Arthur Zorio. "And it did so with assurances that Greyhound could relocate to the 4th Street (Bus) Station."

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But in the year leading up to the sale, the RTC Board and Reno City Council repeatedly delayed a decision on Greyhound's lease despite approving the agreement in 2016. In three meetings, the two governing bodies played hot potato with the three stations in the Reno-Sparks area and deferred votes on leasing space in one of those stations.

Now, Greyhound is leasing its old station on Second and Stevenson streets from its new owner. That lease ends in December 2018. Greyhound said it could suspend its service if it cannot find another location.

At a June 13 Reno City Council meeting, Greyhound proposed moving into the underutilized Amtrak Station in downtown Reno, which Amtrak supported, according to a letter the company wrote to the city. Greyhound and Amtrak proposed forming a transportation partnership.

Council members asked why Greyhound hadn't considered the two Reno-Sparks bus stations instead. Greyhound told the council it had already been in talks with RTC about both of the stations.

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Councilmember Jenny Brekhus lambasted the council and RTC Board for not making an agreement.

"We need to have this intermodal connection downtown. It has to happen. We cannot let it go," Brekhus said at the June 13 city council meeting. "We will be so out of line with so many communities if we don't step up to the plate and realize that we have got to get a place for them right now downtown."

"Inflammatory statements" in letter sent to RTC

The council pushed the agenda item to a later vote after Greyhound answered their questions. A spokesperson for the city of Reno said there are no updates today beyond what was discussed by City Council on June 13.

The Greyhound station needs one to two bus bays, a ticket booth and baggage area, according to its proposals. Greyhound would use these bays to serve its 140 average daily riders in Reno.

According to the letter, RTC had until Wednesday, July 11 to approve a lease for Amtrak or Fourth Street stations before Greyhound initiates further action because it will take about six months to set up operation at one of the stations.

"There were some inflammatory statements in the letter, and the severe tone and approach came as a surprise to RTC," according to an RTC statement to the RGJ. "RTC staff has attempted to contact Greyhound’s attorney, and has informed him that it will need more time to respond to the requests in the letter."

The RGJ did not receive an response regarding if a lease has been approved.

More: Reno Greyhound bus station sold for $3.75 million

Leasing of stations required by federal law

All three stations are currently underused by about half, according to city and RTC staff reports. Greyhound would rent that unused space and money from that rent would help fund RTC operations.

In the July 2 letter to RTC and Reno, Zorio reminded both government bodies that failing to lease one of these three locations is a violation of federal law.

All three Reno-Sparks transportation stations receive millions of dollars of federal funds for construction and maintenance, according to RTC's annual budget reports. As a result, the operators of those stations, the RTC and city of Reno, cannot deny reasonable access for a private intercity or charter transportation operator such as Greyhound, according to federal law.

The RTC and city of Reno staff and legal counsels repeatedly reminded board members and City Council of this law, according to minutes from each meeting and staff reports relating to Greyhound's request. Violating the law could result in loss of federal funds.

"RTC has responsibilities to ensure that its federally funded transit facilities are used, first and foremost, for RTC transit operations in Washoe County," according to an RTC statement made to the RGJ. "RTC is reviewing the contents of the letter, and determining how to proceed in compliance with requirements and guidance from the Federal Transit Administration."

And then there's the allegation of a civil rights violation.

At a Sept. 15 RTC Board meeting, RTC Executive Director Lee Gibson made comments regarding the "demographics" of Greyhound passengers, according to Zorio.

“Do you have any information on the demographics of your customers?" Gibson said at the meeting. "It’s my understanding we’d get some information today on just who your customer is?”

Audio: This is a portion of the Sept 15, 2017 RTC Board meeting where Greyhound proposed moving into the Amtrak Station or Fourth Street Station. At 29 minutes and 30 seconds, RTC Executive Director Lee Gibson asks about Greyhounds demographics.

A Greyhound employee tried finding the information but ultimately did not answer the question at this meeting. A presentation including customer demographics — age, gender, income, ethnicity, employment and reason for trip — was presented to the City Council on June 13.

"We would also be remiss if we did not flag the troubling comments made at an RTC Board meeting regarding the 'demographics' of Greyhound passengers," according to a footnote in Zorio's letter. "Greyhound is proud to serve as a national and international public transportation provider, and I cannot help but wonder given the history detailed herein, if the opposition to its relocation downtown is based on some animus toward certain groups of people. If that is the case, RTC's actions may be considered a violation of Title VI of the Civil Rights Act of 1964, which could jeopardize its federal funding.”

An RTC spokesperson characterized the question as innocuous.

"The topic of 'demographics' being questioned was raised in the context of wanting to better understand Greyhound customer’s preferences and needs to better evaluate RTC’s ability to meet them," according to an RTC statement to the RGJ. "RTC is fully committed to complying with Title VI of the Civil Rights Act of 1964."

Greyhound forwarded its letter, reports, meeting minutes and other exhibits to the Federal Transportation Administration's enforcement division, RTC and city of Reno attorneys. It requested all emails, documents, analyses and financials relating to the issue under the Freedom of Information Act.

Mike Higdon is the city life reporter at the RGJ and can be found on Instagram @MillennialMike, on Facebook at Mike Higdon, Reno Life and on Twitter @MikeHigdon.