MGM takes partners
for Jean development

Feb 13, 2007 4:43 AM

A real estate development venture in Jean, Nev., to be called Jeanco Realty Development LLC, will bring together three southern Nevada community leaders including MGM MIRAGE Inc. (MGM), publisher and real estate magnate Brian Greenspun, and developer Steve Cloobeck.

The company, announced on Monday, will develop a master plan of mixed use development of 166 acres currently owned by MGM MIRAGE. The agreement values the assets at $150 million.

Technically, the Jeanco Realty Development LLC is a joint venture of Greenspun’s American Nevada Holdings, LLC, a subsidiary of American Nevada Corporation, and Diamond Resorts LLC, a subsidiary of the Cloobeck Companies.

The property, located along Interstate 15 some 25 miles south of Las Vegas, includes the 302-room Nevada Landing Hotel/Casino that is scheduled to be closed on April 18. It also is in close proximity to the proposed Ivanpah Valley Airport. It was acquired as part of the acquisition of Mandalay Resort Group by MGM MIRAGE in April of 2005.

Not affected by the development is the Gold Strike Hotel/Casino that sits on the opposite side of Interstate 15 from Nevada Landing.

MGM MIRAGE also owns three casinos just 10 miles south of the proposed development. However, the three Primm properties are in the process of being sold to Herbst Gaming.

In making the announcement Monday, Terry Lanni, chairman and CEO of MGM MIRAGE Inc., said, "As part of our continuing commitment to southern Nevada, we envision the creation of a community featuring residential, commercial and retail elements in addition to a new hotel casino."

Greenspun, whose American Nevada Corporation was responsible for the development of much of the community of Henderson, remarked, "We are delighted that we have this opportunity with MGM and Diamond to use our four decades of mixed-use and community development experience to help provide southern Nevada with a more positive and enriching environment in Jean. We have always believed in the future of southern Nevada and this is another ANC commitment to play our part in making the dream of Las Vegas better."

Cloobeck, whose family once owned and operated The Polo Towers time share units on the Las Vegas Strip, and who has been involved with his Diamond Resorts LLC in several developments around the Las Vegas valley, pointed to the "long track records" of the three companies and said "We are focused on addressing important core issues as we approach the planning process, including affordable workforce housing, sustainability and traffic infrastructure."

The partnership, which is subject to state gaming approvals, is expected to close sometime this year.