This Square in Reno has several restaurants and bars, plus a water fountain (that kids can play in) and a movie theater. We visit once a year on our way home from BurningMan for the Rib Cook-Off. (http://www.yelp.com/biz/best-in-the-west-nugget-rib-cook-off-sparks?utm_campaign=www_business_share_popup&utm_medium=copy_link&utm_source=(direct)) Over 500,000 people attend the end-of-summer event but we always seem to find parking in the nearby neighborhoods without having to pay one of the local businesses (and even residences) that are trying to make a few extra dollars.
We also make sure to visit Paddy's Irish Pub for a cold drink. Service is friendly, drinks are strong, and you can take them to go if you don't want to finish them inside. They have live music and a window for ordering drinks for the festival-goers on the street.
(http://www.yelp.com/biz/paddy-and-irenes-irish-pub-sparks-2?utm_campaign=www_business_share_popup&utm_medium=copy_link&utm_source=(direct))
Labor Day in Reno can be very hot, but I wouldn't recommend playing in the water zone too long - it always smells like they use more chlorine than water.
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