Officials with the San Francisco Lesbian, Gay, Bisexual, and Transgender Community Center have come forward to rebut last week's reports that the nonprofit organization faces foreclosure and needs a $1 million bailout from the city to survive.

Last week the San Francisco Chronicle column Matier and Ross reported that the center was “on the verge of foreclosure” and asking the city to establish a $1 million “mortgage relief fund” to save it. The story was picked up by the Associated Press and reported in outlets including The Advocate.

Center spokesman Roberto Ordeñana contacted The Advocate to say that while the organization has experienced declining revenues due to the economic downturn, reports of a demise barring unprecedented municipal intervention are false.

“We’re not in foreclosure; we’re not seeking a bailout,” Ordeñana said. “We are seeking a loan from the city.”

The $157,500 loan would allow the center to proceed with a loan modification negotiated with First Republic Bank. The center still owes the bank $3.2 million for its new building, which cost $13.7 million to construct. The building opened in 2002 at Market and Octavia streets, the gateway to the Castro district.

Ordeñana referred to a March 10 letter from center executive director Rebecca Wolfe and board cochairs Debbie Chaw and James Williamson that outlines the circumstances.

“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,” said the letter. “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 principal 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 has 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."