Allegations of racism divide Philly's LGBT community

Center City streets still bustling Sunday night in the Gayborhood as Outfest--the city's largest annual LGBT event--wraps up.

This year though a cloud hanging over some festival goers.

Upset over claims of institutional racism made against several prominent gay nightclubs and businesses.

"It hurts, it hurts."

Cashmere says she's been affected by new dress codes at bars she's frequented for years something she and others believe is directed towards black and minority patrons.

"This was our safe space. And now you're telling us we can't be safe and be who we are because we want to rock Timbs? Because we want to wear Adidas sweatsuits? That's totally unfair."

It's one of the issues angering activists who stormed the mayor's annual pride flag raising at City Hall earlier in the day.

Mayor Kenney face to face with demonstrators who say the city is in denial about pervasive racism among white gays who hold prominent positions in city government and business.

The call for action comes after a YouTube video surfaced last month in which the owner of iCandy nightclub in Center City uses the "n" word over and over again.

The bar has acknowledged the statements were made by its owner, and has apologized.

Many still wondering if a community whose members have historically been the victims of discrimination now, need to address it from within.

"The stories of racism and discrimination that we've heard in recent weeks are heartbreaking."

Mayor Kenney and city LGBT affairs director Nellie Fitzpatrick left the room soon after being confronted by protestors.

Later the mayor released a statement saying there is no denying racism is an issue within the LGBTQ community, and pledging to attend a hearing by the city commission on human relations to investigate the problem.