San Francisco Zoo to receive $6.5 million loan from City Hall amid financial struggles
San Francisco city officials have agreed to provide a $6.5 million bridge loan to the San Francisco Zoo & Gardens, as the facility seeks financial stability.
In a statement Tuesday, the San Francisco Zoological Society said the loan was part of a turnaround strategy that included a restructuring plan, improving operations, accountability and a fiscal path developed in partnership with the city, which owns the property and is the zoo's ultimate custodian.
"When I stepped into this role, I knew we needed to identify the challenges quickly, develop a turnaround plan and work with our City partners to secure the support we need to see it through," said Cassandra Costello, who was named permanent CEO in February.
Along with the loan, the zoo is set to receive up to $2 million in additional funding if it meets various performance milestones, including quarterly financial reporting and creating a five-year strategic plan. The zoo must also ensure its accreditation with the Association of Zoos & Aquariums remains intact when it undergoes review next year.
"The early signs are encouraging, and I am confident that with the time and resources to execute our plan, along with the support of our City partners like Mayor Daniel Lurie and District 7 Supervisor Myrna Melgar, the Zoo will emerge from this period stronger than ever," Costello added.
Mayor Daniel Lurie said, "Facing a difficult budget, the city cannot afford to take over the Zoo and spend tens of millions of dollars to shut it down or keep it afloat. Instead, we are doing what our administration has always done and investing responsibly, with accountability, in San Francisco families."
The zoo had been facing issues on multiple fronts. Along with finances, a report from the San Francisco Animal Control and Welfare Commission called the facility outdated and unsafe for animals and visitors.
Tanya Peterson, the Zoo's former CEO, had also faced scrutiny from employees and calls to resign, including from Lurie. Peterson retired in August after 17 years leading the zoo.
Animal welfare groups are critical of the loan and urged the Board of Supervisors to halt any bailout until a city performance audit on the zoo has been fully released.
"This loan underscores a troubling pattern at the San Francisco Zoo — public money continues to flow out the door with no clear plan, no meaningful oversight, and no accountability for how we got here," said Michael Angelo Torres of the group In Defense of Animals.
"Just weeks before the release of a long-awaited performance audit, the city is stepping in yet again to prop up a failing model, even as zoo leadership has reportedly resisted full participation in the very audit meant to provide answers," he added.
