CRENSHAW : City Hedges on Aid for Movie Complex

An eight-screen movie theater complex originally scheduled to open this spring at Baldwin Hills Crenshaw Plaza mall will be delayed and could be in jeopardy.

The $5.7-million project was announced in September, with the city agreeing to contribute $2 million. The other $3.7 million was to come from mall developer the Alexander Haagen Co. and Inner City Cinemas, a joint venture between the American Multi-Cinema Inc. chain and the Lynwood-based Economic Resources Corp.

However, the city is now uncertain about contributing about half of its $2 million share after the recent defeat of President Clinton’s economic stimulus package that would have brought $130 million to Los Angeles. And there is now conflicting information about the status of the theaters.

The $2 million was to have come from three city departments--the Community Redevelopment Agency, the Community Development Department and the Mayor’s Office of Economic Development. The CRA was to contribute $788,000, and the development department and the mayor’s office were to kick in $1.21 million.

One development department official said the city’s commitment to the theater project is now unclear.

“We’re terribly disappointed” the stimulus package was rejected, said Bill Bruce, director of the program support division of the Community Development Department.

Although Bruce stopped short of saying the theater deal is off, he did say: “Now that the money’s not available, we have to try and cover a lot of shortfalls. There’s no other identifiable source of funds right now.”

CRA assistant project manager Bill Price said the absence of federal monies would not affect his agency’s $788,000 commitment to the project.

“The funds for the theater are still in place and approved,” he said. “The additional money would have allowed us to do more things in the community, like hiring consultants to pull various land-use committees in the Crenshaw area together. But as far the theater goes, we’re just waiting on the joint venture deal to be finalized so we can submit it for city approval.”

Calls to the Mayor’s Office on Economic Development were not returned last week.

A spokesperson for AMC Theaters would not comment on the project, saying only that the status of the deal was “in flux.” The Haagen Co. was not available for comment.

But Inner City Cinemas Senior Vice President Nelson Bennett said the project will go ahead regardless of whether the original financial commitments are kept.

“This doesn’t discourage us at all,” said Bennett. “This theater is extremely important to the community, and people deserve it. If necessary, we’re going to find alternative ways to build. We’ll keep right on striving.” Bennett said it has not yet been determined when construction of the theaters, which were hailed as a potential major boost for the financially troubled mall, will begin.

Inner City Cinemas also owns the three-screen Baldwin Theater on La Brea Avenue, the nation’s only black-owned, first-run movie house.