$3.9 million buys bankrupt Reno casino

RENO -- The bankrupt Siena Hotel Spa Casino was sold at a courthouse auction on Wednesday for $3.9 million to a group of investors who say they intend to reopen the riverfront Reno hotel-casino they believe is poised for a comeback.

U.S. Bankruptcy Judge Gregg Zive approved the sale of the property, building and its goods to Grand Siena LCC conditioned on the group closing the deal with bankruptcy lawyers within 48 hours.

"We're going to get the property opened as soon as we can and fill it up," Grand Siena investor Jay Meilstrup said. He said they would begin work to reopen the hotel and restaurants while pursuing new licenses with state gambling regulators.

"We're set for what we believe is going to be one of the stronger comebacks in the industry," Meilstrup said. He said the investment team includes partners in Los Angeles and Chicago but declined to provide further details.

"There are five of us who saw the potential for this downtown property," Meilstrup said. "It is such a beautiful property and is going to take so little effort" to prepare it for reopening.

"It's going to be the Siena," he told reporters outside the courthouse after the auction. The bidding between Grand Siena and two other parties began at $3 million on the property once worth at least 10 times as much.

At one time, the Siena had about 500 employees, but it suffered through several financial difficulties over the years. After shutting down all gambling operations earlier this year, it closed its doors for good in October.

The two other bidders at Wednesday's auction were Stratus West, and a combined group of Northern Nevada Asset Holdings LLC and Nevada Casino Holdings.