The Lake Garden Entertainment Center (sic) first applied for a permit when it opened in 2015, but never finished the application process.

Centre owner Ross Hartley said council staff returned about six months ago after complaints from a nearby resident.

The business then applied for a permit but was rejected following objections from six residents.

They blamed the centre for noise, graffiti and parking issues in the area.

However Mr Hartley said his business was not the root cause for all these problems.

“Anyone who knows this area knows the graffiti has been around a long time,” he said.

”It was ridiculous stuff – saying this business was responsible for graffiti.

“We have off-street parking here, there was a complaint about people parking in the street – but that is not all my business.”

Mr Hartley also said there was no alcohol sold on his premises, but patrons had brought their own “a couple of times”.

The family-run business backs onto Wendouree Train Station, which is a graffiti hotspot, and neighbours a heavily used Taekwondo gym and storage units.

It had a variety of video games, pool tables and arcade games for parties, but has closed indefinitely following council’s decision not to issue a permit.

Mr Hartley said he would launch Victoria Civil and Administrative Tribunal action, or would move his business to another town, if the decision was not overturned.

A council media release said the permit was refused because there was insufficient or inaccurate information provided to allow staff to assess the application.

It also said the business would have an unacceptable effect on the amenity of the neighbourhood and did not meet Ballarat planning scheme requirements

The six objectors to the business can also participate in any VCAT proceedings

The permit is currently in the appeal period for for a VCAT challenge.