The San Francisco Chronicle's recent headline, "LGBT Center looks to San Francisco for a bailout," certainly cast some clouds over 1800 Market Street.
But grabbing the community's attention may be the silver lining by fostering discussion about the center, its great programming and unique role, especially around economic opportunity.
The LGBT Community Center opened in March 2002 – following $13.7 million in construction. The city contributed $5.7 million, matched with $4.7 million in private donations and state and federal grants.
Ultimately, the center had to take out a $3 million mortgage. In the ensuing years, the center has paid $1.5 million in mortgage payments but only $50,000 in principal has been paid down. Without this debt the center would have been operating in the black for the past five years.
Like most nonprofits, the center has felt the downturn and it became necessary to revisit its mortgage with the lender, First Republic. The bank was willing to improve the terms of the loan, reducing the interest rate from 6.25 percent down to 5 percent. This would save the center approximately $200,000 in interest payments over the next five years.
In exchange for these improved terms, First Republic required that the city provide a guarantee for the first year's payments, totaling $157,500. This guarantee would only be drawn upon if the center were not able to make its loan payment. And, again, the center had not missed a payment until the agreement to restructure.
The recent legislation I have sponsored with Supervisor David Campos provides that one-time appropriation for loan guarantee and establishes a process whereby the Board of Supervisors would have to authorize even one dollar in additional guarantees.
It is true that the center will owe First Republic over $1 million over the next five years, however, under no circumstances would the city be asked to front that money.
So to be absolutely clear, the only action we are seeking is appropriating the $157,500 to be held in reserve, which enables us to save $200,000 in interest costs without the city spending a dime.
In opening the center, there were many hurdles, especially about retention of the historic Fallon Building that withstood the great fires of the 1906 earthquake. I agreed with those who fought the demolition of this historic portion – yet its preservation added to the overall costs. At the same time, the controversy chilled donations at a time when the center most needed additional support.
Another challenge was finding the center's unique role. In most cities with an LGBT center, their origins date back 20-30 years or more. In both New York and Los Angeles, their centers pre-dated the AIDS epidemic and they became the focus for government funding of prevention, testing, and care.
For San Francisco, the path to creating our LGBT center was more circuitous and our major institutions, such as San Francisco AIDS Foundation, Lyon-Martin, Horizons, Our Family Coalition, LYRIC, New Leaf, GLBT Historical Society, PAWS, among others, were all established independently from the center.
So what would the center's unique purpose become?
During the center's first year, I secured funds to begin the first small business loan program anywhere focused on the LGBT community. Ken Stram, a veteran of Capitol Hill and the Small Business Administration, started this program. The center has continued to expand its leadership in economic opportunity to include financial planning, workforce, first-time homebuyers, and the Transgender Economic Empowerment Initiative (jointly with Transgender Law Center and Jewish Vocational Services) that is heralded as a national model.
Ken Stram and Tracey Williams have led the business attraction and retention program for the Castro that has worked hard to bring in new businesses and help maintain existing small businesses. In a few days we will be announcing a veterinarian for the Castro, which is an example of their work bringing in businesses that are wanted and needed.
The Transgender Economic Empowerment Initiative recently placed its 100th participant into employment. The center has hosted more than 20 job fairs, bringing private and public sector job opportunities to the community.
The center has provided youth programs that complement collaborative efforts with Larkin Street Youth Services, LYRIC, Dimensions Health Clinic, and New Leaf to provide services for youth and transitional young adults including our supportive housing model. Each year, the center serves more than 1,000 meals to young people in a supportive environment.
I have tremendous confidence in center Executive Director Rebecca Rolfe, her leadership team, and the board. While the center's original model generating revenue through room rentals was not realized, Rebecca has been a strong fiscal manager and is exploring creative approaches, including a possible restaurant use that can attract people in the evenings and serve as a base for community employment.
Most of all, I want to encourage people to have an ongoing stake in the center, whether that donation is large or small. I began an effort to encourage people to contribute $50 or more monthly. I call it "50 @ 50" and we have already brought 40 donors into this effort. For every 50 people at $50 we generate $30,000 annually to sustain the center.
I am confident that we will weather these storms and make the center sustainable. Whether as a volunteer or donor, please make your contribution (http://www.sfcenter.org).
Bevan Dufty is a member of the San Francisco Board of Supervisors and represents District 8, which includes the Castro.