Campaigners and opposition parties have rounded on the proposal that the recently bankrupt Glasgow LGBT Centre, a one-stop shop for the city’s lesbian, gay, bisexual and transgender community, be taken over by a group called Castro, headed by Councillor Ruth Black, instead of the team behind the Glasgay festival.

Glasgay is said to be furious that Ms Black, who will declare an interest at a meeting today, is also the council’s deputy executive member for equality – a role that could have allowed her access to the Glasgay bid, submitted six months ago. She was previously manager of the LGBT Centre, although left before it closed earlier this year amid rancour and accusations, as well as debts of more than £300,000.

Glasgay claims it has been successful for almost 20 years yet the council wants to give the running of the LGBT centre to an organisation not yet established and with no management, governance or staff arrangements, as well as a direct connection with the previous regime.

Letters have been circulated to all members of the council’s executive by the director of Pride Glasgow, another gay rights organisation, calling on them to reject the council’s recommendations.

The council’s SNP and LibDem groups will also call on the committee to postpone making a decision until bids are resubmitted, with some opposition members saying the proposal lacks transparency.

Last night, one senior source within Glasgow’s gay community warned of “considerable fallout” and “deep unease” if the council’s recommendation goes ahead, while others claim it has already created schisms ­within those at the forefront of gender politics in the city.

As well as Ms Black, who jumped ship to Labour last year having been Scotland’s only Solidarity councillor, the interim committee for the Castro bid includes Robert Tamburrini, the chief executive of North Glasgow Housing Association, and John Wilkes, head of the Scottish Refugee Council. Glasgay’s personnel includes Green MSP Patrick Harvie, Lynne Sheridan, sister of Tommy, and Glasgow Labour councillor Tom McKeown and his party colleague Irene Graham.

The source said: “Given the track record of the LGBT centre, this isn’t a safe decision to make when using the public’s money. When we

talk about fallout we’re not talking Stonewall riots but a deep unease.”

The LGBT centre was wound up in April, just two years after moving into new premises in the Merchant City. It had provided a range of health and social care ­services, as well as a bar/cafe. The £1m refurbishment of the Bell Street building included a £300,000 loan from the council, which the Castro bid has said it will pay back. If it goes ahead, the ­proposal will involve the council

giving Castro £47,000 to re-open the centre.

Last night, SNP councillor Alex Dingwall said: “There is a lack of transparency and detail in the reports and a real danger that the funding issued will mean that at least one of the bids will not be sustainable.”

Paul Coleshill of the LibDems said: “The report has recommended two options, one of which is effectively internal and neither of which have been properly examined. But unsurprisingly the internal option is recommended. Officers should go back and examine the bids against transparent criteria.”

A Glasgay spokesman said: “We don’t feel our bid has been fully examined.”

A council spokesman said: “The recommendation is based on the expert advice of officers from different services across the council. They believe the Castro proposal is more strongly aligned with the social inclusion agenda.”

Ms Black said: “I will declare an interest and will not be involved in the decision-­making process. I have had no role in the development of the committee paper and no access to the Glasgay bid.”