La Puente : Entrepreneur Cries Foul

The would-be operator of a pool hall and entertainment center says nearby homeowners have scared away his investors with their vehement and tireless opposition, and now the project is in jeopardy.

Hawthorne-based billiards-hall operator Dick Obayashi, who owns the Crystal Palace pool hall in Inglewood and is part owner of the Golden Cue in South El Monte, said three backers once willing to invest $350,000 in the La Puente center have deserted him. The reason, he said, is a string of delays in various administrative hurdles he had to overcome before opening the planned “South Hills Sports Center.”

He attributes the delays--especially one preceding the recent approval of a liquor license from the state Alcoholic Beverage Control--to a group of residents in bordering West Covina. Some live just 100 feet from the former water-bed store that Obayashi wants to renovate.

Since the City Council approved the project more than a year ago, the residents have tried to block it, claiming that, among other things, it would attract crime to the area.

Banks have also refused to loan Obayashi the $1.2 million he needs to convert the 26,000-square-foot structure into what Obayashi said would be a “family entertainment center,” including a bar, restaurant, 40 pool tables and a video arcade for children.

Obayashi said he will continue to search for investors. He estimates the business could gross $2.5 million the first year, providing the city with a new source of sales-tax revenue.

Meanwhile, opponents are trying to block Obayashi’s attempt to get a $400,000 federal Housing and Urban Development loan. Residents have contacted the local HUD office in hopes of discouraging the agency from allowing the city of La Puente to use the HUD funds it receives to help Obayashi.