Los Angeles’ Community Redevelopment Agency on Tuesday notified owners of the upscale Stock Exchange nightclub that the agency will foreclose on a controversial $250,000 loan if it does not receive payment in 45 days, officials said.
“Today we are sending them a letter saying that the loan was due on Oct. 13, you have not paid and we are going to go after the collateral,” said Barbara Kaiser, the agency’s downtown project manager.
The loan was made June 15 to keep fire officials from closing the downtown Los Angeles club because of an inadequate sprinkler system and safety problems. The loan to the trendy club drew criticism from advocates for the homeless, who said there were better uses for agency money.
Kaiser said the club can continue to operate until the payment deadline. The loan, she said, is secured by lighting and sound equipment in the building and by the owners’ personal guarantees.
The club’s owners could not be reached for comment.