It was recently reported that the previously discussed deal for the purchase of Cal Neva Lodge and Casino by Oracle Corp.’s Co-Founder and Billionaire Larry Ellison could remain just in the talks. The deal which is estimated to cost as much as $35.8 million could end up with the backing out of the multinational computer technology corporation. The news for the potential jeopardy comes only a month after the arrangement for transferring ownership was reportedly reached.
Cal Neva Resort and Casino is a resort and casino which is located on the border between the states of Nevada and California right on the shores of Lake Tahoe. Monday, the 16th October this year saw the approval of the acquisition by Ellison’s Lawrence Investments, but the news for putting an end to the deal conversations are not new. Back on 29th November the US Bankruptcy Court, which is charged with handling the case stated that the stay for the discussed sale is for a longer period of time than the buyer is willing to accept. Nicholas Strozza is Assistant United States Trustee and he issued the filing at that time.
Another claim by Mr. Strozza was that the case should be tossed out of court, whereas a hearing is set for the end of January next year. Tahoe Regional Planning Agency recently stated that the region needed the approved Cal Neva project to come to fruition in order to provide an upgrade to the location of the historic North Shore property and to revive the Crystal Bay community. The location features 218 rooms and cottages, various restaurant offerings, a spa, 16,000-square-foot meeting space, and a lounge.
Timeline of the Acquisition Deals of Cal Neva Resort & Casino
Andy Chapman, President and Chief Executive Officer of the Incline Village Crystal Bay Visitors Bureau made a statement shortly after the announcement of the deal in October. In it, Mr. Chapman expressed his hopes that the purchase is completed and the Cal Neva has a new owner which to take care of it. It could be recalled, that the local community was excited by the prospects of the deal for the purchase of the location. Back in the spring of 2013, the resort was acquired by Criswell Radovan, which is a real estate firm based in Napa Valley.
Shortly after that, the location was shuttered for the renovation that was due but never actually happened. The reason behind this was that in June 2016 the real estate firm had to file for bankruptcy. Frank Sinatra was once the owner of the Cal Neva entertainment facility which has a long history filled with a lot of expectations. This was the golden era of the resort which brought a lot of attention towards the site and famous guests to the likings of the Rat Pack, Marilyn Monroe and members of the Kennedy family. The exciting plans of the community for a revival of the property would have to be put to rest for now until all matters around a potential acquisition are settled.