Friday, Aug. 2, 2002 | 11:06 a.m.
Las Vegas timeshare developer Diamond Resorts International has formed a joint venture with Indian casino operator Lakes Entertainment Inc. to develop an upscale timeshare project in the Las Vegas Strip resort district, Lakes said.
Construction of French-themed "the Chateau," a 33-story, four-tower, 850-unit complex, should begin sometime in 2004 with completion of the first tower in 2005. The location is the old Shark Club property on Harmon Avenue near the Strip.
Diamond Resorts President Stephen Cloobeck could not be reached for comment. Lyle Berman, president and chief executive of Lakes Entertainment, also could not be reached.
It was not clear this morning whether the project would feature a casino. Diamond's other local timeshare projects, Polo Towers and the Jockey Club, do not contain casinos.
"We feel this is an excellent site for this type of development and we are looking forward to getting the project under way," Berman said in a statement.
Under the agreement, Diamond would manage the property as well as perform sales, marketing and administrative services. Lakes would be required to contribute the parcel, about 3.5 acres of undeveloped land valued at $16 million, after Diamond has obtained a financing commitment for a construction loan sufficient to fund at least the first phase of the building improvements.
Diamond would repay Lakes its contribution of property in cash based on the project's cash flow and timeshare unit sales. Both parties will make an initial capital contribution of $250,000.
Minnetonka, Minn.-based Lakes Entertainment has development and management agreements with Indian tribes for four new casinos in Michigan, California and on the East Coast.
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