Philly will extend welcome — and $15 million line of credit to DNC

Unlike 2000, when Republicans held their nominating convention in Philadelphia, the city has promised not to spend money to support next year’s Democratic National Convention.The city, however, is guaranteeing a $15 million line of credit for the DNC.

The line of credit through the Philadelphia Authority for Industrial Development was approved by City Council in June, and Mayor Michael Nutter signed it soon after.”One of the requirements when you are the host city is that DNC requires … that you have as backup a line of credit to deal with potential expenses,” Nutter said. “This is a routine matter, there are no city funds expended in play or at risk.”While he doesn’t expect the credit line to be tapped, Nutter said that. if it is, the city will not forgive the debt.”There’s no doubt that funds will be repaid, but there is no expectation to ever use it,” he said Thursday. “The only reason that we sought one is that it’s a requirement of the DNC … otherwise we would never have asked for one in the first place.”The DNC host committee released a statement agreeing it does have an obligation to repay the loan should it use the line of credit.  The statement noted Philadelphia offered a similar credit line to the Republicans in 2000.