United Leisure to Invest $24 Million in Las Vegas

With time running out on its property lease in Irvine, United Leisure Corp. said Wednesday that it intends to invest $24 million in the heart of the Las Vegas Strip.

Harry Shuster, chairman and CEO of Irvine-based United Leisure, said the company has entered into an agreement to purchase a 50% interest in 8 1/2 acres of partially developed land along the storied gambling thoroughfare.

Shuster said the company plans to develop the parcel into a themed resort with a casino, hotel, shops and restaurants. The property, across from Circus Circus and the Stardust Hotel, already is home to the Silver City Casino, which is managed by Circus Circus.

“Gaming and themed attractions are exploding worldwide led by what is happening in Las Vegas,” Shuster said. “We are in the right place, at the right time, with the right location.”

The move is Shuster’s latest attempt to diversify the holdings of United Leisure, parent company of the defunct Lion Country Safari. The leisure company has been embroiled in more than a decade of contentious litigation with its landlord, the Irvine Co., from which it leases 300 acres near the El Toro Y in south Orange County.

The 29-year lease is United Leisure’s core asset and presently provides the company with the bulk of its revenue through subleases with Irvine Meadows Amphitheatre and Wild Rivers water park. The master lease is set to expire Feb. 28, and Shuster has threatened to raze those facilities by exercising a clause in his lease that allows him to remove all improvements to the property.

That has triggered yet another round of lawsuits, in which the owners of the amphitheater and water park are trying to prevent Shuster from tearing down their facilities. But no matter what happens, Shuster vows that the expiration of his master lease won’t mean the end for United Leisure.

“We intend to expand and diversify,” Shuster said. “The expiration of the lease won’t prevent that.”

*

Shuster said he is purchasing the Las Vegas property from an overseas investor. He declined to reveal the name of the owner or the names of three private investors who are putting up the money to purchase the other half of the property.

Shuster and the three investors are involved in a legal tussle with the current lender on the Las Vegas property over the reassignment of the mortgage from the current owner to the new investment group. Shuster said he expects to resolve the dispute or find a new lender within 90 days.

United Leisure owns and operates Camp Frasier, a summer day camp with locations in Irvine, San Diego and Yorba Linda. The company also owns and operates three Planet Kids indoor play centers for children. In addition, the company is working on development of interactive multimedia products for the leisure industry.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

United Leisure Corp. at a Glance

* Headquarters: Irvine

* Chairman/CEO: Harry Shuster

* Business: Owns and operates three Planet Kids play centers and three Camp Frasier summer day camps. Also leases 300 acres in Irvine upon which Irvine Meadows Amphitheater, Wild Rivers and other recreational facilities are located.

* Las Vegas purchase: Half interest in 8.5 partially developed acres on the Las Vegas Strip for $24 million. Includes Silver City Casino.

* 1995 revenue: $3.2 million

* 1995 net loss: $644,183

Source: Bloomberg Business News; Researched by JANICE L. JONES / Los Angeles Times