Financial Woes Stall $40-Million Compton Casino Plan

A proposed $40-million casino complex in Compton has been stalled by financial problems.

Construction had been scheduled to begin this month, but the developer, Compton Entertainment Inc., asked for more time to arrange adequate financing, officials said. The City Council extended the deadline to start construction by six months to Dec. 11.

Potential investors have been reluctant to commit funds because of the city’s crime rate and the threat of a drive to place the casino issue on the ballot, said Jerold B. Neuman, an attorney for Compton Entertainment. The ballot effort fizzled, and the developer has assured potential investors that the complex will have adequate security, Neuman said.

He predicted that construction will start in four to six months. The project will include a casino, two restaurants, a bar and a nightclub on a seven-acre site in the near-vacant Compton Auto Plaza off the Artesia Freeway.

Councilwoman Yvonne Arceneaux opposed the deadline extension. “I just question whether they’ll obtain the financial backing,” she said. “I hope this is not another failed project in Compton.”

Compton Entertainment will have to pay the city $125,000 a month in licensing fees beginning in September, the month when the casino originally was scheduled to open. The council rejected the developer’s request to postpone the fees.