I'm sorry--the Catholic Church tries to blackmail the entire city into not providing equal protection for all its citizens by threatening to cut off all of its charity work, and its the city that's the bad guy? The city has a responsibility to protect all of its citizens; charities have a responsibility to help those who need it. If a Klan based charity had made the same arguments, would we have any debate? If an anti-Catholic group had run a charity, but refused to hire Catholics, would we have this argument?
There are Scrooges here, but it's not the city.