BY Kenneth Harvey
March 25 2010 3:30 PM ET
A key committee of the San Francisco board of supervisors voted Wednesday to
recommend approval of a $157,000 loan to the city's LGBT
Community Center, radio station KCBS reported.
The loan request will now go to the full board.The $157,500 would allow the center to proceed with a loan modification negotiated with First Republic Bank, which will save the center $200,000 on the $3.2 million outstanding debt for its building. The bank asked for a reserve fund to guarantee repayment of the mortgage, and the center plans to use the city funds for that.
Supervisor Bevan brought the request to the board's budget committee. “The center has been able to find its place within the community, focusing on economic opportunity services, newcomers, and providing a focal point for the community,” Dufty said.
Some committee members had reservations, however. “Becoming a signer to this and putting the city on the hook is just not something I think we should be doing,” supervisor Sean Elsbernd said. Elsbernd voiced concerns that the center's debt to the city could balloon to more than $1 million.
Other concerns raised included that providing this loan would open the door for other nonprofits to request funds.
The center opened eight years ago with the help of a $5.7 million grant from the city.
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