The path to becoming a nightclub magnate in Los Angeles isn't necessarily paveed with gold. SBE Entertainment Inc., a newly-established nighclubbing entrepreneurial company is attempting to create a network of upmarket restaurants, clubs and hotels all over L.A. County. However, Hollywood, of all places, appears to be resisting this incursion.

Despite the nightlife industry being the area's life-blood, plans to build a $10 million, three-story nightclub, Shelter II, are being stymied. Sources within SBE confirm that the company had never experienced such opposition. The resistance is expected to come to a head when the Hollywood zoning administrator holds a critical hearing, with interests ranging from other venue owners to prominent property moguls and neighborhood activists intending to testify against it. The project can't move forward without approval, though any decision will likely be appealed. Opponents complain Hollywood can't handle another nightclub.

At 2 a.m., when many venues shut up shop, the main roads become blocked as tens of thousands of rowdy, often drunk revellers simultaneously head home. "This isn't about this particular company ; it's clubs in general," said an L.A. nightlife veteran who owns another local venue. "There's an overabundance of them and they have arrived too late." However, SBE isn't without supporters. The 13th District President Eric, favors the project. A spokesperson for SBE claims the company has cleared every hurdle the council office had set for the project. That includes securing parking, opening a restaurant for lunch and dinner and including a daytime community art program. The new crop of upmarket venues nightclubs was welcomed a decade ago in Hollywood.

The new establishments attracted crowds and celebrities to a long-neglected community that was starved of investment. The clubs installed security and better lighting around their properties, contributing toward making the area a safer nighttime destination. However, the clubs have also exacerbated Hollywood's challenges, according to Officer Michael Rose who works Hollywood vice and is the local alcoholic beverage control coordinator. The nightclubs have led to increased instances of public intoxication, fighting, aggravated assaults, date rape and driving under the influence, he said.

"The nightclub owners realize they've created the boom and they've created the monster," Rose said. "If we plan to keep all our interests afloat, they have to help slay the beast and deal with these problems."

There are 430 state issued alcohol permits in Hollywood and 80 permits in the blocks between La Brea Avenue and Gower Street, and Yucca Street and Selma Avenue, according to Rose. As alcohol-related problems began to rise, the number of alcohol permits issued by the California Alcohol Control Board has been restricted to restaurants as local officials have put their foot down.

Last month a San Diego nightclub owner failed to get approval for a venue at the former Frederick's of Hollywood flagship store. Still, SBE believes it will be able to get a permit. As of last Thursday, despite concerns, the Los Angeles Police Department hadn't yet taken a position on whether to support or oppose SBE's plans.