TMZ has learned Colony Capital wants to develop a business plan to turn Neverland into a small music institute -- similar to The Juilliard School in NYC. The plan is to teach teens all aspects of music, including writing and performing.
Colony wants to turn the property into a campus, in which scores of teenagers -- rich and poor -- can learn the trade that made Michael Jackson a legend.
There are two big stumbling blocks. The first is making sure Santa Barbara County will sign off on such a project.
The second -- and bigger issue -- is whether Colony Capital can use Michael Jackson's name to promote such an institute. TMZ has good news for Colony .... sources directly connected with the Michael Jackson Estate tell us, "It's an interesting idea and we'd be open to it."