Even If San Francisco’s LGBT Center Doesn’t Actually Need $1 Million to Stay Afloat, the City Says ‘Too Bad’ (Updated)

San Francisco’s LGBT Community Center, which the city spent some $5.8 million to help create, and which needs a $1 million bailout (updated; see below) from the city to continue operations, Wednesday night was summarily denied any cash by the Board of Supervisors. Well, for now anyways. “Supervisors Bevan Dufty and David Campos, the board’s two gay supervisors, have proposed helping the nonprofit community center meet its mortgage obligations so it doesn’t face foreclosure. … Members of the budget committee said while the center plays an important civic, cultural and social role, they fear the arrangement could open the floodgate for other cash-strapped nonprofits seeking city aid.” [SF Chron]

The Center responds to media reports with a statement (PDF): “The San Francisco LGBT Community Center serves over 9,000 people each month and hosts over 3,000 programs and workshops each year; we pilot groundbreaking programs, serve LGBT community members most in need, and provide information and referral
services to link community members to critical services. What we are not is in foreclosure – nor are we asking the City for a $1 million bailout. … We do have $3.2 million in outstanding debt related to the construction of the building, which has been carried in a loan with First Republic Bank. After almost a year of very difficult bargaining, we have achieved a loan modification that financially benefits the
Center. This includes a reduction our interest rate, which will save $200,000 over the next five years, and a modification of principle payments to help cash flow. The bank is requiring that we create a reserve account, with a balance of $157,500 – reserves which we do not have. The City have been involved in the discussions from the beginning and Supervisors Bevan Dufty and David Campos are sponsoring legislation to provide a loan from the City to the Center. This is a loan and not a grant. It is also $157,500 – not over $1 million as is reported in some sources.”