Battle over proposed movie studio land waged in Supreme Court

Monday, Nov. 12, 2001 | 8:20 a.m.

CARSON CITY -- A legal dispute over a failed venture to develop a major motion picture and television production center on 84 acres in Henderson has reached the Nevada Supreme Court.

Jurists heard arguments last week in the failed Black Mountain Studio venture.

Studio Enterprises Ltd. owned by Doris Keating and her husband, Barry Schlesinger, failed to get the project off the ground in February 1999 after missing a city-imposed deadline, then sued the city over its denial.

An out-of-court settlement was reached last year for the city to pay Studio Enterprises $3.2 million. In turn, Studio Enterprises was to return the 20 acres in Wagon Wheel Industrial Park it purchased from the city for $1.2 million and to relinquish its right to acquire 64 more acres.

Another company -- InSynch Unlimited, owned by Mary Colleen Meile and her husband, Matt -- sued over the agreement, claiming it is entitled to five of the 20 acres.

InSynch had formed a third company with Studio Enterprises to start a planned unit development on five of the 20 acres, a development that ultimately was rejected after neighboring property owners objected. The Meiles claimed that the joint company, of which they hold 66 percent, owns the five acres.

District Judge Mark Denton ruled the full 20 acres be returned to the city, but ordered $775,000 of the settlement to be held in a trust to determine how much the owners of InSynch were entitled to.

InSynch appealed Denton's order returning the 20 acres to Henderson, and Studio Enterprises appealed the ruling that $775,000 be set aside.

In the hearing before the Supreme Court last week, attorney Todd Touton, representing Studio Enterprises, argued InSynch had no right to intervene after a settlement with the city was reached.

Brian Whitaker, attorney for InSynch, said his clients were entitled to a part of the settlement, since it kept its part of the bargain with Studio.