Local News in Brief : CRA Backs Off on Club Foreclosure

Los Angeles redevelopment officials Wednesday backed down on plans to foreclose on the downtown Stock Exchange nightclub, agreeing instead to allow the club’s owners to repay a $250,000 loan over several months.

The Community Redevelopment Agency Board of Commissioners authorized CRA officials to negotiate a payment plan that would enable TSE Club Inc. to pay off the loan in installments plus about $7,000 interest.

Earlier this month, CRA officials said the agency would foreclose on the club and sell its sound and lighting equipment to recoup the CRA investment.

The CRA sought the foreclosure because officials feared the club would close and declare bankruptcy. However, because city inspectors extended a deadline for upgrading the building and the club apparently will remain open for several more months, CRA officials agreed to allow the owners more time to pay off the loan.