Neverland Ranch -- A Teen Haven for Music

The owners of the Neverland Ranch -- the former home of Michael Jackson -- want to turn the property into a teenage music haven.

TMZ has learned Colony Capital wants to develop a business plan to turn Neverland into a 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."