SF Zoo Receives $8.5 Million Loan, With Majority Awarded After Fulfilling Requirements

San Francisco approved an $8.5 million loan to the San Francisco Zoological Society to keep the zoo operating while it implements requirements from a recent city audit. The nonprofit receives $2.5 million up front, with the remaining $6 million released only after facilities improvements and structural changes are completed. The loan is tied to milestones set by the Department and the zoo, including cost cutting, revenue and fundraising increases, and improved oversight and planning practices. The zoo’s new director is responsible for meeting requirements before additional funds are released. The audit cited unauthorized construction spending, budget deficits, weak financial oversight, and management failures. The zoo also plans to bring back giant pandas, but advocates question its ability to provide proper care based on its record.

"The city and county owns the land and we own the animals. We have to make sure that it all works, said Melgar, speaking to NBC Bay Area. If the organization doesn't survive, it is our responsibility that those animals are taken care of and fed three times a day. So we came up with a plan jointly to help them."

"The nonprofit will first receive $2.5 million up front, and the remaining funds will be held until after the zoo implements facilities improvements and structural changes outlined in the audit. There is a long list of milestones that the Department and the zoo must meet, said Supervisor Myrna Melgar, who requested the audit last year, as her district covers the zoo."

"The zoo's new director, Cassandra Costello, who was appointed in February, will reportedly be responsible for making sure the zoo fulfills several requirements before receiving the remaining $6 million from the loan. Meanwhile, the Zoological Society will also be required to cut costs, boost revenue and fundraising, and improve oversight and planning practices."

"As SFist reported earlier this month, the audit found the zoo and its nonprofit spent roughly $12 million on construction and improvement projects between 2019 and 2025 without obtaining required city approval, while also citing ongoing budget deficits, weak financial oversight, and broader management failures."

Read at sfist.com