SF Supervisors Approve $8.5M Zoo Bailout

San Francisco supervisors approved an $8.5 million loan on May 19 to keep the San Francisco Zoo operating while its nonprofit manager tries to stabilize its finances. The vote gives the San Francisco Zoological Society access to city money after months of warnings that the zoo was running out of cash. (kqed.org) The action followed a recent city audit and a separate fiscal analysis that examined what it would cost if the nonprofit could no longer run the zoo. Cassandra Costello, the zoo’s new chief executive, said the money would allow the institution to keep caring for animals and stay open while it makes operational changes. (localnewsmatters.org) ### Why did San Francisco step in with a loan? The Board of Supervisors approved the loan after the zoo’s nonprofit operator projected a roughly $12 million deficit over the next two years, according to reports on the measure and the city’s audit process. (kqed.org) The San Francisco Zoological Society has managed the zoo since 1993, but the city owns the land, improvements and animals, according to the Budget and Legislative Analyst. An April 7 policy analysis prepared for Supervisor Myrna Melgar said the city had to consider the short-term costs of a scenario in which the nonprofit stopped operating the zoo and San Francisco assumed responsibility for the animals and grounds. (kqed.org) That report outlined options including a city-run zoo, a closure and animal relocation process, or a hybrid structure. ### What pushed the zoo into this crisis? A May 1 performance and management audit by San Francisco’s Budget and Legislative Analyst examined the zoo’s operations after the Board of Supervisors ordered a review in December 2024. News reports on the audit said auditors found at least $12 million in unapproved capital improvement spending, adding to scrutiny of the zoo’s management. (localnewsmatters.org) The zoo has also struggled with attendance since the pandemic, KQED reported, hurting ticket and concessions revenue as operating costs rose. KQED said the loan debate came after years of turmoil that included concerns about worker safety and animal welfare. (sf.gov) ### What does the city require in exchange for the money? The loan agreement requires the zoo to meet several conditions before and after drawing on the funds. KQED reported that zoo officials agreed to develop a five-year strategic plan, cut expenses by at least 10% and provide quarterly reports on attendance and other operating metrics. NBC Bay Area also reported that the loan came with conditions for the nonprofit operator. (media.api.sf.gov) Cassandra Costello said at a public hearing that the funding would help the zoo continue operations, pursue sponsorships and fundraising, and begin strategic and master planning work. She also said the zoo wanted to continue a capital campaign tied to bringing giant pandas to San Francisco. (kqed.org) ### Who backed the rescue, and who objected? Supervisor Connie Chan said at a committee hearing that the next two years would be critical for the zoo and urged managers to use staffing and resources wisely to build a long-term foundation, according to KQED. The unanimous board vote showed broad support for preventing an immediate disruption at the nearly 100-year-old institution. (kqed.org) In Defense of Animals opposed the bailout after the audit findings, arguing that the nonprofit had not shown it could manage additional money effectively. KQED reported that some residents also proposed converting the zoo into an EcoPark, though that idea had not gained substantial traction. (kqed.org) ### What happens next for the zoo? The San Francisco Zoological Society now has to comply with the loan conditions while carrying out recommendations from the city audit. The Budget and Legislative Analyst’s reports have already framed the next phase around financial controls, operational planning and the city’s contingency options if the nonprofit falters. (kqed.org) Quarterly reporting and a five-year strategic plan will give supervisors new checkpoints as the zoo seeks to reduce spending, improve operations and maintain fundraising. Costello told city officials the planning work would help set the stage for future investment, while supervisors said they would be watching closely over the next two years. (kqed.org) (media.api.sf.gov)